Supermarkets and other major retailers are pressing ahead with green business practices despite the threat of recession, according to a new report from Forum for the Future, the sustainable development charity.

Efficiency savings, consumer pressure for greener goods and the rising cost of oil and other resources are all reasons why it makes good business sense to put sustainability at the heart of creating value, according to Retail Leadership.

“Our partners are leading the way in building a sustainable, low-carbon economy because they understand it is good for their profits, good for their customers and good for the communities they serve,” says Peter Madden, Chief Executive of the Forum, which works in partnership with more than 15 leading retailers and branded manufacturers.

“Maintaining an emphasis on sustainable development in core business will be an important element of retail success – recession or not,” says the report’s author Tom Berry, Head of Retail at the Forum. “And staying focused on sustainability in a down-turn will only help to reinforce claims and dispel accusations of greenwash.”

Retailers have a vital role to play in building a sustainable, low-carbon economy, the report argues. They can drive far-reaching change up and down their supply chains, supporting local economic development and helping suppliers operate in ways which have less impact on the environment and do more to benefit communities. They can also help hundreds of millions of customers to make straightforward, affordable and more sustainable choices.

Retail Leadership offers a view of sustainability from the market to the shop floor, identifying the hallmarks of leader businesses and providing examples of best practice.

Eco-efficiencies – making savings by reducing energy use, packaging and waste – directly support the cost-cutting which retailers and consumers look for in a downturn. By sharing lorries to make more efficient deliveries Tesco and Unilever have saved more than half a million “empty” miles.

Consumers’ growing demands for greener, healthier, more ethical products have made them a critical part of brand positioning and a driver for new product and service innovations. Sainsbury’s has seen a 60% rise in sales of higher-welfare chicken since 2007 and is adding lines to meet growing demand. In the Kingfisher Group, which sponsored the report, Castorama has rolled out more than 2,000 “eco-products”.

And recession or not, argues the report, in the long term successful retailers will be those who have robust strategies in place to deal with the rising cost of oil and commodities, who support suppliers in drought-prone and water-scarce areas, and who work to make sustainable products more available and affordable to their customers.

Ray Baker, Director of Corporate Responsibility, Kingfisher plc, which sponsored the report says: "As a leading retailer, our key challenge is how, through responsible behaviour, we act at speed to put sustainability at the heart of both our business and our customer proposition. As an international business with a wide range of experience across many different markets and cultures, we are well-placed to take the lead in developing and implementing solutions to these challenges.

He adds: "The global economic slowdown may cause some to question the benefits; in my mind there is no question. During the past year we have seen an enormous public shift in the attention given to environmental and social issues and our customers now look to us for solutions to create more sustainable homes.”

Dowload a copy of the report here

For more information and to arrange interviews, please contact David Mason, Head of Communications, Forum for the Future at d.mason@forumforthefuture.org or on +44 (0)20 7324 3631 and +44 (0)77 9907 2320

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 NOTES TO EDITORS

Forum for the Future – the UK-based sustainable development charity - works in partnership with over 130 leading organisations in business and the public sector. Our vision is of business and communities thriving in a future that is environmentally sustainable and socially just. We believe that a sustainable future can be achieved, that it is the only way business and communities will prosper, but that we need bold action now to make it happen. We play our part by inspiring and challenging organisations with positive visions of a sustainable future; finding innovative, practical ways to help realise those visions; training leaders to bring about change; and sharing success through our communications.

We are grateful for Kingfisher’s support in the publication of this report. However, the content is entirely the work of Forum for the Future and does not necessarily reflect the views of Kingfisher or its subsidiary brands (B&Q, Brico Depot, Castorama, Koctas, Screwfix and Trade Depot).