Voice of the Industry: Sustainability Survey 2024 Key Insights

Amid ongoing inflation, intensifying geopolitical issues, and climate-related supply chain disruptions, the focus on sustainability seems to be taking a back seat to immediate concerns such as profitability. In fact, there was a 7-percentage-point decrease between 2023 and 2024 in businesses stating they have a sustainability strategy in place.

However, the upcoming stringent regulations are posing a challenge to corporations to find effective approaches to incorporate sustainability into their operations. Employing technology to enhance efficiency and decrease costs, along with clear, evidence-backed communication of their sustainability commitments, is vital.

Drawing insights from the Voice of the Industry Survey and the Sustainability Claims Tracker, Euromonitor offers valuable perspectives into how businesses conceptualise, manage and communicate sustainability efforts.

Here are three out of the five key takeaways from Euromonitor’s Voice of the Industry: Sustainability Survey report.

New greenwashing laws have companies reconsidering strategies

This year has seen a drop in businesses embracing sustainability, with many prioritising short-term profit over long-term environmental goals. In response to consumer demands for product transparency, the EU has introduced the Directive on Green Claims, ensuring companies’ environmental claims are verifiable. This move may prompt other regions to tackle greenwashing too.
A notable outcome of these measures is the emergence of a "greenhushing" trend, observed and documented over the past year. This refers to companies choosing not to disclose sustainability information, largely due to the fear of facing penalties for greenwashing. This reluctance is also driven by the mistaken belief that sustainability initiatives can negatively impact returns and product effectiveness. Consequently, this has contributed to the observed decline in sustainability engagement.

Companies are losing out from ineffective communication

Industry experts admit they excel at communicating with employees and investors, but struggle with reaching the average consumer. Yet, consumers are critical to driving company behaviour, particularly in promoting and selling sustainability.

Product claims influence consumers, with nearly a third preferring eco-friendly products despite price hikes. Thus, substantiated claims can effectively communicate a product's sustainability. This can be achieved through third party certifications, sustainability reports, and clear disclosure of eco-friendly benefits.However, over the past year, many have said their communication is falling short. Tailored strategies are needed for different stakeholders. Investors need to understand the financial gains and long-term prospects of sustainability, while employees should be informed about wellbeing strategies, work-life balance initiatives, and corporate social responsibility efforts.

AI unlocks new potential for sustainability investments

This year, the top sustainability investment has been in employee support programmes. Caring for employee wellbeing boosts productivity, a crucial factor for businesses in these economically challenging times.
Investing in waste and recycling is crucial, especially now as we are entering an exciting time where AI is set to transform waste management. Automated sorting systems powered by AI can sort waste more accurately and efficiently, helping to reduce contamination and lessen the amount of waste sent to landfills. We've already seen a significant uptick in the adoption of AI for waste management this year.

A prime example of this is the partnership between Aldi UK and Greenback Recycling Technologies. They have developed an AI-driven recycling system called eco2Veritas, in collaboration with the Flexible Plastics Fund (FPF). This partnership aims to track and clearly show the journey of plastic, from collection from consumers to its final product.

Companies that ignore sustainability investments face an uncertain future. With growing pressures to achieve Sustainable Development Goals (SDGs), dwindling resources, and consumer willingness to support sustainability, companies risk hindering their long-term growth if they don't adapt.

Learn more about Sustainability in our report, Voice of the Industry: Sustainability Survey, and visit our Sustainability page for further insights on where to play and how to win with sustainable claims.