retail sector - Adult male using laptop

Sustainable transformation in the retail and CPG sector: now, next and beyond

Michele  Camuri

Michele Camuri

Industry Lead, Retail & CPG, Microsoft Western Europe

Read Time, 2 min.

Technology is disrupting every industry, but perhaps none so fundamentally as retail and consumer packaged goods (CPG). The unstoppable rise of online shopping over the past two decades has totally transformed the retail landscape. Some retailers have emerged, others disappeared, while others still have adapted to remould themselves in an exceptionally competitive landscape.

The key to survival has been operational excellence. But it is now becoming clear that the future of retail and CPG is going to be defined by another issue too: sustainability. Fashion alone is responsible for 4% of global greenhouse emissions worldwide, while the proliferation of delivery services during the COVID-19 pandemic has further increased motivation to transform the sector’s environmental impact.

It is a huge challenge, and one that affects all parts of the supply chain. But with the right technology, it is one that all retail and CPG businesses can rise to.

Male and female first line workers in conversation at sales counter in retail store

The greatest opportunity for retail and CPG

Retail trends are driven by many factors – trade agreements, geography, climate, popular culture – but consumer demand is perhaps the most significant. And the pandemic has shown that consumers are increasingly influenced by the environmental, social and governance (ESG) agenda.

This represents an opportunity for retailers, as many have realized. Sustainable products are growing in their strategic importance and C-Suite roles in retail and CPG are increasingly focused on how sustainability trends can become a key driver of profitable growth in the coming years.

Sustainability-marketed products represent an opportunity to increase revenue by catering to consumers’ ESG-related criteria, which are now more significant than ever. The key question is how to harness digital technology to support this move towards a more sustainably-minded retail and CPG sector in the future.

The sustainable transformation model

 

The Sustainable Transformation Model has been developed by Microsoft to provide a framework to support businesses in their efforts to create a better tomorrow.

It provides industry-specific guidance on how to take the next step forward, detailing what to consider now, next and beyond across 3 pillars of the sustainable business model:​ sustainable platform, sustainable collaboration and sustainable ecosystem.

Discover a more sustainable way of working for retail and CPG. Download the Sustainable Transformation Model today: 

 

 

 

 

Sustainability. Good For Business. Executive Playbook.

Provides guidance for 6 roles across the C-Suite on how to take the first step to a more sustainable and prosperous tomorrow.

6 minutes

Reducing global food waste with Azure

Danfoss has been using Microsoft Azure to track food storage temperatures, helping to reduce food wastage at a global level.

Discover more related articles per industry:

Finance & Insurance

  • Sustainable Transformation in FSI: now, next and beyond

    Sustainable Transformation in FSI: now, next and beyond

    The connection between sustainability and finance is not new, but it’s one that is gathering pace. Capital allocation is increasingly directed towards sustainable investment projects in financial services, with Bloomberg reporting [1] that global socially responsible investments totalled over $30 trillion in 2019. Today’s customers also expect that companies they use not only act responsibly, but proactively pursue financial activities that make a positive […]

Government

  • Dune_Desert_Landscape_

    How the public sector can define the sustainability agenda for everyone

    Digital technology is everywhere, and it is changing the way citizens behave. From working patterns to the day-to-day services we use and the places we live, there is no aspect of modern life that remains untouched by digital tools and solutions. This represents both the biggest challenge and opportunity for public sector organizations as they […]

Manufacturing

  • a person wearing a helmet

    How a steel giant boosted sustainability by adopting a data-driven mindset

    See how Outokumpu is redefining the stainless-steel industry through its digital transformation with Microsoft, lowering CO2 emissions and improving energy efficiency.

  • Ponsse: Turning a forest-machine manufacturer into a data-driven business

    Ponsse: Turning a forest-machine manufacturer into a data-driven business

    “When our customers use our machines, they want to have real-time information on how those machines are functioning, how efficient they are. But they don’t want to be overwhelmed with raw data – they just want the intelligence, to know the best way to run their operations.”  Miika Soininen, is Director of Digital Services and IT at Ponsse, one of the world’s leading manufacturers of forestry machines. He’s talking about how his company is innovating with data to optimize its operations and offer transformative new services to their global […]

Retail

Discover more related articles per dossier:

Customer Stories

  • a hand holding a video game remote control

    Oss Norge: Using cloud technology to create a greener energy market

    “The greenest energy is the one you don’t use. Our product helps people use less energy by giving them a much more detailed overview of what they’re consuming.” Erik Berg Solheim, CEO of Norwegian energy data specialist Oss Norge, is explaining how his company’s flagship product is helping contribute to a greener, more sustainable society […]

Digital Transformation

  • Dune_Desert_Landscape_

    How the public sector can define the sustainability agenda for everyone

    Digital technology is everywhere, and it is changing the way citizens behave. From working patterns to the day-to-day services we use and the places we live, there is no aspect of modern life that remains untouched by digital tools and solutions. This represents both the biggest challenge and opportunity for public sector organizations as they […]