Retail
Primary Manufacturing Packaging Distribution Consumption Production
Food retail has undergone significant changes over the last 50 years with the growing dominance of supermarkets over local specialist food shops. Approximately 80% of the £76 billion spent annually on groceries goes to supermarkets who as a result have significant power over suppliers. Being amongst the most powerful companies in the food chain, supermarkets have the power to exert exacting specifications on their suppliers which can result in high levels of waste in the food chain or equally can work to encourage and embed sustainability. The choices such companies make such as how they freight their goods and where they source them from have a significant impact upon greenhouse gas emissions. Choices such as store design and the purchase of electrical equipment, particularly fridges, also impact significantly upon greenhouse gas emissions. Food retailers also have the ability to drive changes in consumer behaviour through the choices that they provide and influence within their stores.
Key considerations
- What are the key threats to sustainability at this stage of the food chain?
- What is your organisation required to do by law?
- What external help is available?
1. What are the key threats to sustainability at this stage of the food chain?
- Waste food and packaging resulting from suppliers being forced to discard produce which does not meet supermarket standards of apperance as well as from over packaged produce.
- High levels of energy and water consumption. Water is used to wash food, energy to heat large stores and power fridges and freezers which are often highly inefficient.
- Food labelling and nutrition are also risks to sustainability at this stage of the food chain. Food retailers can govern the nutritional value and quality of the produce they sell and can make nutritional values obvious to consumers through the provision of clear, simple nutritional labels on their own brand produce.
2. What is your organisation required to do by law?
Legislation demanding better environmental performance by food retailers in terms of waste include the Producer Responsibility Regulations and WEEE Directive and the Voluntary Agreement on Plastic Bags, all of which aim to reduce the quantities of waste being sent to landfill through reduced inputs, reuse and recycling. Further legislation exists in the form of the Supermarket Code of Practice, introduced in 2002, following the reccommendation of the competition commission. This code aims to redress the power inequalities between the UK's major supermarkets and their suppliers.
Food quality, nutrition, and labelling issues are also subject to certain legislation. With the exception of the Food Labelling Regulation (1996) and food certification schemes (such as organic accreditation) little of this legislation is of direct relevance to issues of sustainability. Similarly, whilst energy consumption is an important threat to sustainability in the food retail industry, there is a marked absence of legislation governing it. For example, it is estimated that 5% of the UK's annual energy consumption is a result of supermarket use. The largest five supermarkets are also responsible for 3% of the UK's annual CO² emissions, with rising energy prices the only concrete incentive for them to improve their efficiency (in the short term).
3. What external help is available?
The Waste and Resources Action Programme aims to encourage and enable consumers to use materials more efficiently and increase incidences of recycling through the provision of training, publications and funding. The Courtauld Commitment is an agreement between WRAP and major grocery organisations which aims to develop and encourage new packaging solutions and technologies in order to bring about real reductions in packaging and food waste.
The Institute of Grocery Distributors provides information, factsheets, research and best practice guides to enable companies to develop whilst incorporating ideas of sustainability.
The Sustainable Development Commission is the government's independent advisory body on sustainable development. They provide best practice guides, information and advice for companies as well as information on available government advice and support.
Forum for the Future engages with private and public sector organisations and aims to find practical ways for them to deliver a sustainable future as well as communicating their ideas and findings to them. 'Retail Futures', a publication available on their website, is a particularly useful resource.
Defra's Food Industry Sustainability Strategy is a further useful source of information.
Challenges to overcome
- Lack of leverage with suppliers.
- Failure to communicate sustainability credentials to customers.
- Lack of ability to change current systems or the cost of change and availability of the resources required to do so.
- Lack of clarity/knowledge of the issues of sustainability and how it effects them and they affect it.
- Creating and selling affordable sustainable products that are for the mainstream consumer and not just aimed at the high end of the market.
- Consistent labelling that is informative but does not confuse customers with multiple messages.
- Helping local and rural communities prosper while retaining economies of scale.
- Investing in standards in developing country supply chains or respecting different cultural norms?
- How to collaborate on issues while still keeping space to compete? Useful advice regarding this can be found in the Partnerships & engaging others module of this website.
Are there useful sources of advice we haven’t included? If so, please let us know.
Are there key considerations we haven’t included? If so, please let us know.
Are there challenges in this area we haven’t discussed? If so, please let us know.