UK: Sustainability gains could save businesses GBP100bn a year
UK businesses could generate GBP100bn (US$151.5bn) in annual productivity gains generated by innovations designed to address environmental and social challenges, a new report has revealed.
The Fortune Favours the Brave report, by Accenture, Business in the Community and Marks & Spencer, argues that companies must go beyond conventional corporate and social responsibility programmes and, instead, place sustainability at the heart of business strategies and operations to unlock the full commercial potential and sustainability benefits.
The report suggests that scaling innovation in five categories - resource efficiency, the circular economy, new consumption models, shared value approaches and transparency and customer engagement - can improve competitiveness, grow revenues and better address changing customer needs.
"As customer values and expectations evolve, sustainable products need to be made more desirable to engage with customers and to develop a self-sustaining, circular economy," said M&S CEO Marc Bolland.
"Everybody wants a racing car, but even a racing car can be fuel efficient. We need to make sustainability desirable, appealing and relevant, and by responding to customer wants, UK business will have more impact."
The report said companies can generate annual savings of up to GBP61m by scaling resource efficiency and energy efficiency initiatives and through the use of cleaner technologies, according to Accenture analysis based on data published by the Department for Business Innovation and Skills.
The UK consumer goods industry could save GBP15-18bn annually by closing the loop on supply chains, extending asset life, promoting re-use and designing products for disassembly, according to analysis for the report by the Ellen MacArthur Foundation. Accenture estimates that circular economy approaches can achieve a 50 -90% reduction in a product's environmental footprint.
Meanwhile, social media and other technologies are creating new ways of using goods and services and altering business models, including by extending the pay-as-you-live and sharing economy and enabling consumers to live more asset-light lives. This market involves consumers collaborating with each other to re-use, share, swap or barter goods and services.
Technologies that improve traceability and customer engagement regarding product origins can boost trust and loyalty, according to Accenture, which estimates that the UK manufacturing sector could also generate cost savings of GBP3bn per year.
Among the industry executives who spoke with just-style this year were Tim Wheeler, president of Jockey's international division, Esquel Group's CEO John Cheh, and Joe Dixon, SVP of production at Broo...
Among the most-read analysis articles on just-style in 2013 were stories relating to the Bangladesh Accord on Fire and Building Safety, sustainable garment production, and closing the loop in the appa...
Instead of our regular look at the most read stories on just-style during the week, we thought a fitting end to the year would be to take a look at the top stories on just-style in 2013. Garment facto...
just-style takes a look at some of the most interesting quotes to have featured in our news and insight in 2013....
Hampshire Group has said it will report another year of losses and poor results in fiscal 2013 but expects to produce positive cash flow and EBITDA in its next financial year....
Spanish retail group Inditex, owner of the Zara fashion brand, has joined a raft of apparel companies in halting the use of angora wool in all of its products....
Luxury spending in mainland China has slowed, with similar expectations for growth forecast for 2014, according to figures from consulting firm Bain & Co....
- Will new Vietnam wage hinder competitiveness?
- Under Armour Lighthouse will disrupt production
- Digitisation to drive new apparel-making models
- How TAL Apparel is staying ahead of the game
- Fashion fit for the future – strategies for speed
- Marks & Spencer top for modern slavery reporting
- Bangladesh garment workers rally for higher wages
- MAS Holdings shares commitment to sustainability
- Gap to shutter all UK Banana Republic stores
- M&S "unappealing" clothing a barrier to growth
- Africa-Med strategic sourcing review – comparing East Africa, North Africa and Turkey
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Apparel (GLOBAL) - Industry Report
- Global Sports and Fitness Wear Market 2016-2020