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A growing need to connect consumer demand and CPG companies’ action on ESG

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ConsumerGeniuses

Global consumer demand has been a primary source of economic prosperity and expansion over the last century, but this success has had social and environmental consequences. It is critical for both consumers and businesses to recognise and address these societal and environmental implications as part of their purchasing decisions and ESG-related actions. Businesses should prioritise and invest in initiatives that advance their overall ESG commitments the most, and they should notify customers about those actions, including information expressed through product label claims. Companies should define the actions throughout the enterprise that have the greatest ESG impact and then publicise those actions, where appropriate, with claims across their product portfolios to ensure that ESG product claims support an overall ESG strategy with a meaningful environmental and social impact across the portfolio. They should also create a product design process that incorporates ESG-related claims as well as cost engineering. Product designers may optimise the visibility, efficacy, and cost-efficiency of ESG-related product features that will resonate with customers by using a rigorous design-for-sustainability methodology. Businesses should invest in ESG through existing brands as well as creative new items, and they should grasp the ESG dynamics that are unique to each category and brand. Companies should also embrace ESG’s comprehensive, linked character by developing solutions that solve numerous challenges. Lastly, organisations should consider doing a category- and brand-specific review to determine if and how multidimensional claims should be implemented.

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