The Fast-Moving Consumer Goods (FMCG) sector increasingly faces pressure over its environmental impact, with packaging alone responsible for about 40% of global plastic waste. Regulators have set the tone, and businesses must respond decisively by integrating environmental, social and governance (ESG) principles or risk corporate survival. Nonetheless, sustainable practices create opportunities like access to the market, ESG-linked financing such as green bonds, and brand differentiation.
Understandably, implementing full ESG principles in FMCG supply chains presents unique challenges. The sector’s focus on cost efficiency and rapid delivery often conflicts with sustainability initiatives that may require additional investment or longer implementation timelines.