Retail
In the retail sector, it is especially challenging to ensure environmentally friendly policies, ethical sourcing and worker safety, and transparency from beginning to end of supply chain. Public companies are increasingly required to publish their ESG strategy and reporting, both for government and investors. Investors ask for ESG commitments before investing in the company and regulators require increasing transparency in the ESG reporting.
Fortunately, companies who demonstrate commitment to ESG initiatives are rewarded by customer loyalty and increased market value of the company.
Customers and investors are becoming increasingly sophisticated and aware of ESG efforts, and are deliberate about where they spend their dollars and how that reflects their values. A survey of CEOs with strong ESG commitments points to significant market cap increase (for some, as high as 10%) for companies who committed and invested into ESG programs.
Retail companies are aware of ESG challenges and, in response, are setting up best practices and initiatives. They are pledging to go green and achieve net-zero emissions, reduce emissions and wastage. ESG programs in the retail sector must be set up to promote workers' safety and well-being, and training to upskill for the latest innovations helps social development programs. Companies are gathering data across warehouses, transportation logistics, employees, and supply chain initiatives, to ensure transparency and compliance in ESG initiatives.
Environmental
- Reduce greenhouse gas emissions, waste generation, energy and water consumption in procurement, manufacturing, and distribution operations
- Increase utilization of renewable energy sources and recyclable materials, and improve environmental performance of the supply chain, transportation logistics, recycling and disposal of pharmaceutical and chemical products
- Develop greener product packaging to reduce environmental impact or address environmental challenges
Social
- Improve affordability of products for underserved populations
- Increase diversity and inclusion in workforce composition, and patient access from financially and socially underserved communities
- Conduct humane and ethical research & development
- Maintain privacy policies
- Support employees, community health, and wellness initiatives
Governance
- Establish sustainability policies and monitoring processes
- Provide transparency and accountability in ESG information
- Comply with Federal, State, and Local laws and regulations
- Set up awareness training to prevent, notify, and action for employee harassment
- Set up controls and governance
- Set up a Dedicated ESG Platform to gather ESG data from across the company
