- What you need to know
- ESG has gained momentum across a larger section of society and across different markets as the demand to be transparent and just picks up pace.
- Actions, regulations and programmes in support of ESG are becoming more and more common across the globe. For instance, the development of the Kyoto protocol in 2005, the Paris alignment agreement in 2016 and the UK’s launch of its green finance strategy in 2019.
- There are four different technology trends impacting the ESG theme in retail and apparel, including artificial intelligence, internet of things (IoT), refrigeration efficiency and transportation. All will play a significant role in allowing companies to enhance their ESG credentials.
- There are five distinct macroeconomic trends impacting the ESG theme in retail and apparel, they include, alternative energy, COVID-19, ethical consumerism, generation Hashtag and M&A. These trends will play an important role in influencing how companies enhance their ESG credentials.
- Retailers are facing many challenges within the ESG theme, across all three pillars. Retailers will need to work hard to address these issues swiftly and keep the world up to date on their progress and actions, as transparency is an essential factor in gaining ESG credentials.
ESG continues to gain popularity across several sectors, retail and apparel included, as consumers, governments, regulators, and the media begin to scrutinise and praise companies through an ESG lens. Social inequality, lack of action against climate change, diverse boards and tax avoidance are all issues that companies must address and ameliorate in the limelight, in front of all.