Selected Consumer Packaged Goods
The consumer packaged goods (CPGs) industry has an outsized footprint in terms of raw material and water consumption, GHG emissions, pollution and waste generation. Supply chains are typically responsible for the lion’s share of these impacts. Regulators are thus tightening their provisions via plastic taxes or stringent environmental requirements for packaging, textiles and food items.
IntegrityNext helps you manage the key sustainability risks and opportunities in your supply chain with minimal effort. Our solutions cover the topics most material to your industry and allow you to meet due diligence requirements and boost your sustainability performance:
reduction efforts and
SBTi engagement targets
RoHS and REACH
Risks and Opportunities
The CPG industry is highly diverse and companies typically have extensive product portfolios that sit at the intersection of different sectors. Common items run the gamut from food and beverages to apparel, household and personal care products, health and wellness, among others. While the concomitant sustainability risks vary, some commonalities exist. They all need to be addressed to minimise adverse impacts and harness opportunities for improved supply chain performance.
The high-frequency and -volume consumption of many CPGs puts enormous strain on the environment. But if managed adequately and responsibly, these inherent characteristics can also represent a major lever for large-scale and cross-sector change. Positive knock-on effects can, for instance, be prompted in agriculture, chemicals manufacturing, transport and logistics.
One of the prime challenges across the industry pertains to packaging which entails substantial raw material and fossil fuel extraction, the use of hazardous substances and waste generation. These problems have been linked to reports of child and forced labour, poor working conditions and occupational accidents in developing countries. Land use conflicts, pollution and habitat degradation are further salient risks. Companies must shift away from oil-based plastic packaging, reduce waste volumes and embrace circular design. An increased focus on reusable, recyclable and renewable materials can ease pressures on the environment and result in lower resource consumption. Rigorous due diligence is required to safeguard sound environmental standards and uphold universally accepted human and labour rights in the corresponding supply chains. The same holds true for procured resources, input materials and components contained in the CPGs themselves such as palm oil, cocoa or plastic.
Concerted efforts are also needed to address Scope 3 emissions which can account for 80% to 90% of a CPG company’s carbon footprint. Raw material extraction and processing as well as upstream transportation, including cold chain shipping, are among the main drivers. Supply chain decarbonisation can go a long way in curbing emissions and enhancing value chain resilience.
Lastly, product safety is of utmost concern. Stringent quality management must rein in the use of hazardous substances in CPG products, in the interest of both consumer and worker safety. Circular design can play a critical role in this regard. Further sector-specific supply chain risks apply depending on the business activity at hand. For more details please consult the respective industry profiles .
IntegrityNext provides a platform for comprehensive ESG supply chain risk management that allows you to meet due diligence requirements and improve your sustainability performance:
- Carry out a carbon footprint assessment and benefit from enhanced visibility into your suppliers’ emissions, reduction efforts and targets.
- Analyse the most relevant environmental, social and governance risks as part of a five-step risk management process.
It includes an abstract country and industry risk analysis to deliver initial insights into your supply chain’s risk exposure. Based on more detailed pre-built assessments, which draw on authoritative international standards and conventions, you can monitor your suppliers with respect to the main ESG risks:
Carbon footprint: collection of emissions data, monitoring of reduction efforts and SBTi engagement targets (Science Based Targets initiative)
Compliance with the European RoHS directive on hazardous substances and REACH
Adherence to universally accepted human and labour rights
Occupational health and safety
We help you identify suppliers with the most severe impacts so that you can develop a coherent strategy and target your preventive and remedial measures accordingly. The results gleaned from the assessments are synthesised in a GRI-certified report that can be readily used for your disclosures.
Hälssen & Lyon
Sustainable supply chains
as quality assurance in international tea purchasing
"With the IntegrityNext solution, we can collect sustainability and compliance data even on small suppliers and growers in remote parts of the world, significantly increasing supply chain transparency.”
Sourcing its raw materials in more than 130 countries, quality and sustainability play an integral role at Hälssen & Lyon, and the company works closely with its business partners to implement labor, social and environmental standards across the supply chain.
The company was therefore looking for a scalable solution to help increase supply chain transparency by obtaining reliable supplier data on the relevant standards.
How IntegrityNext helps
To increase transparency about its supply chain, Hälssen & Lyon invited all suppliers to perform the IntegrityNext assessments regarding the relevant ESG topics, and continues to monitor performance via the platform. This visibility enables the company to easily identify risk and areas of improvement and make ethical sourcing decisions. Based on the collected data, Hälssen & Lyon can then take measures to improve performance and ensure the ongoing quality of its products.