What if efficiency is the key to creating a more sustainable retail future?
Customer Example
Reitan
Will following green principles always cost businesses money or limit their activities? Or is it possible to improve profit margins as well as the planet’s prospects?
There’s a tension in the business world: namely that the fastest route to profit can conflict with the long-term needs of people and the planet. The traditional route to making more quick money is to take shortcuts, spend less on inputs and drive-up sales – all of which risks damaging ecosystems and reducing quality of life for workers.
While most businesses respect the balance between people and profit, business leaders increasingly ask: is the trade-off inevitable? Or can businesses prosper without somebody, somewhere, losing out?
It’s a timely idea in the face of regulatory change. In the US, for example, the Environmental Protection Agency recently proposed rolling back 31 environmental rules in what it termed the “biggest deregulation action in US history” to ease costs on businesses and households (EPA).
Critics argue this move risks undermining public health and environmental safeguards. To companies for which sustainability is a surface issue, such policy swings could be a cue to turn back the clock.
Sustainable value creation
This course of action could provide short-term savings, but likely longer-term losses. The more companies weave sustainability into their core operations, regardless of public policy, the more they will be able to reap the benefits.
With the EU’s Corporate Sustainability Reporting Mandates and the European Green Deal, plus China’s 14th Five-Year Plan – which comes with a host of policies promoting green innovation, low carbon and the circular economy – on a global scale the trend is moving towards tougher environmental standards.
Differing approaches to sustainability mean companies will likely create competitive advantages by anticipating new regulations and adapting strategies to thrive in evolving political and economic environments. Especially if businesses want to trade with markets whose standards differ.
If, for traditional business models, growth means extracting valuable resources, for new models sustainability is a source of innovation, efficiency and, by extension, profitability.
Across Europe, companies are proving this point: UK cheese maker Wyke Farms powers its operations with biogas from farm waste, cutting costs and emissions at the same time.
In Spain, clothing retailer Mango has invested heavily in circular fashion initiatives, including resale and textile recycling, which both reduce waste and attract younger, climate-conscious consumers. Unilever has shown that its “Sustainable Living” brands consistently outperform the growth of its wider portfolio (Unilever).
Small businesses stand to benefits as much as their larger peers. According to the British Business Bank, ESG principles attract eco-conscious customers, help to win government contracts, inspire employees, lower operating costs, help to comply with regulations and increase investment attractiveness (British Business Bank).
Sustainability is good for manufacturing too. The accelerating uptake of green technology doesn’t just reflect the global green transition, it’s also a marker of demand for new and innovative manufactured goods.
According to the International Energy Agency (IEA), the global market value for the six mass-manufactured clean energy technologies (incorporating solar PV, wind, electric vehicles, batteries, electrolysers and heat pumps) grew almost 400% between 2015 and 2023, topping $700bn. That’s equivalent to around half the value of global natural gas production the same year.
The IEA’s Energy Technology Perspectives report from 2024 states: ‘Growth has been driven by surging clean technology deployment, particularly for EVs, solar PV and wind. Under today’s policy settings, the market for these clean technologies is set to nearly triple by 2035 to more than $2tln’.
That figure is close to the average annual value of the global crude oil market in recent years (IEA).
The money markets are convinced of sustainability’s role in building profitable businesses. Despite geopolitical headwinds, global sustainable fund net inflows were just under $5bn in the second quarter of 2025. On its own, Europe attracted $8.6bn net new money during the three-month period (Morning Star).
Doing good = doing well
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