Digital Tech Unlocks $2T in Sustainability Value for CPG Companies by 2030
Consumer Packaged Goods (CPG) companies are facing significant challenges in achieving sustainability due to intricate supply chains and evolving consumer expectations. However, digital technologies are emerging as a powerful tool to tackle these obstacles, with the potential to unlock over $2 trillion in value for the environment and society by 2030, according to the World Economic Forum.
Digital platforms are transforming the way CPG companies approach sustainability. They can centralize and manage Corporate Social Responsibility (CSR) activities, streamline sustainability initiatives, and track their real-world effects. Moreover, digital compliance tools are simplifying the process of staying compliant with sustainability regulations, reducing the risk of non-compliance and allowing companies to focus on their core business activities.
Digital transformation is also empowering CPG companies to trace and verify the sustainability of every component in their supply chain. By optimizing resource use and designing products with the environment in mind, companies can significantly reduce their environmental impact. Platforms like Planted's AI-driven ESG management system are supporting companies holistically in their ESG strategy, from CO2 accounting to reporting.
Blockchain technology is further enhancing sustainability efforts by preventing greenwashing. It creates a secure and transparent record of every action taken along the supply chain, ensuring that sustainability claims are genuine and verifiable. Additionally, digital transformation is streamlining data management, enhancing reporting accuracy, and providing actionable insights into environmental impact for sustainability and compliance heads.
The importance of digital transformation in achieving sustainability goals is recognized by CEOs. According to a study by Accenture, 94% of CEOs believe it is key to achieving sustainability goals in their organization. Furthermore, embracing the circular economy with digital innovations can help companies minimize environmental impact and create sustainable value chains by reducing waste and reusing materials. Artificial Intelligence (AI) and machine learning are also playing a crucial role in discovering eco-friendly materials and designs for sustainable packaging, reducing carbon footprints and waste. Blockchain technology ensures that packaging materials come from sustainable sources and meet environmental standards.
Digital technologies are proving to be invaluable in helping CPG companies achieve sustainability. By centralizing CSR activities, streamlining compliance, tracing supply chains, and enhancing transparency, they are enabling companies to meet their sustainability goals. With the support of platforms like Planted and the power of technologies such as blockchain and AI, CPG companies are well-equipped to embrace a sustainable future.
