The Consumer Goods and Retail sector is navigating Assurance 4.0 - a new era of risk and opportunity as organisations respond to shifting consumer demands, evolving regulations and a complex geopolitical landscape. January is usually a time of forecasts and trends; we see three critical trends emerging as priorities:
Sustainability is a part of the core business strategy now
Sustainability is no longer a corporate buzzword; it is a part of core strategy. As governments introduce stricter regulations like the EU’s Corporate Sustainability Reporting Directive (CSRD), companies must adopt robust sustainability frameworks. Effective strategies integrate ESG principles into every aspect of operations, from sourcing to production to end-of-life solutions. At the heart of this evolved approach to sustainability is ensuring that a company understands its most material issues. More and more companies are undertaking double materiality assessments, not only to meet reporting requirements, but to ensure the identified priorities are integrated into business strategy.
Data-driven insights and digital tools are helping organisations measure and manage their sustainability performance more effectively. At LRQA, we help businesses design and implement strategies that go beyond compliance. Sustainability strategy today is about creating long-term value for all stakeholders while staying ahead of regulatory and market demands. We are taking a modern approach to double materiality, strategy and reporting and see opportunity to lead in this new paradigm of reporting.
Deploying a robust approach to human rights in supply chains
With increased scrutiny on human rights, the pressure is on brands to ensure their approach to human rights is robust. Recent data highlights rising rates of forced labour, child labour, wage violations and inadequate working conditions in many sourcing regions, including in markets that were thought of as less risky. These issues pose significant risks to businesses, including reputational damage and regulatory penalties, not to mention the negative human rights impacts at the heart.
Companies must ensure they are conducting appropriate due diligence and human rights impact assessments, to understand their risks in the operations and supply chains. Companies are also adopting engagement tools like grievance mechanisms, worker surveys and third-party assessments to identify ongoing challenges and look for opportunities to remedy any identified issues. By enhancing transparency and accountability, businesses can mitigate risks and create positive social impact. At LRQA, we provide tailored solutions that help organisations uphold human rights and meet international standards, ensuring supply chains are resilient, ethical and compliant.
Transparency needs to underpin healthy and sustainable food systems
Consumers today demand transparency and responsibility from brands and we couldn’t discuss this without mentioning food. The push for healthy and sustainable food systems is accelerating as retailers and suppliers aim to offer nutritious food while reducing their carbon footprint, contributing positively to biodiversity and respecting human rights. Overall, we see that assurance is essential to help address environmental and social concerns whilst building consumer trust.
The Consumer Goods and Retail sector faces an unprecedented opportunity to lead in sustainability and ethical practices. Embracing these trends is not only essential for compliance but also critical for building a brand that resonates with modern consumers. At LRQA, we are committed to supporting businesses on this journey through expert insights, robust assurance services and innovative tools. Together, we can shape a more sustainable and equitable future for the industry.
