Suppliers who do not sign up to retailers' sustainability agendas face the risk of de-listing, a new report commissioned by Coca-Cola warns.
The report - Sustainability Trends in European Retail, conducted by Forum for the Future - found retailers were increasingly targeting supply chain partners to improve their green agendas.
Retailers were looking to improve their own credentials with eco-stores and other initiatives, but most of the greenhouse gas and water use in the fmcg sector occurred earlier in the supply chain, the report said.
"Retailers are under a lot of pressure from consumers to be sustainable, especially on issues such as packaging," said Dr Sally Uren, deputy chief executive of Forum for the Future.
"As these are factors they cannot affect directly, they are having to work with brand owners to deliver. That gives branded suppliers an opportunity to be ahead of the field, but companies who don't take this up, and view it as a risk instead, will see retailers take their business elsewhere."
Coca-Cola said it had already seen retailers putting sustainability criteria on a par with conventional supply criteria. In the US, it said, Wal-Mart already had sustainability on its supplier score card, while in the UK, Tesco recently carried out a packaging audit of its suppliers.
"To a greater or lesser extent at different retailers, collaboration on sustainability is moving into everyday conversations with supermarket buyers," said Joe Franses, Coca-Cola Enterprises head of corporate responsibility and sustainability. "This is fast becoming not an option, but an imperative for long-term profitable growth, not to mention being a good corporate citizen."
Meanwhile, CCE European home channels director Bill Mathieson said one challenge for Coca-Cola was consumer education, as the greenhouse gas impact of a can of Coca-Cola falls 40% if consumers recycle their packaging. This, he said, was the driver behind the unveiling this week of Coca-Cola's first consumer-facing ad campaign targeting recycling.
The report - Sustainability Trends in European Retail, conducted by Forum for the Future - found retailers were increasingly targeting supply chain partners to improve their green agendas.
Retailers were looking to improve their own credentials with eco-stores and other initiatives, but most of the greenhouse gas and water use in the fmcg sector occurred earlier in the supply chain, the report said.
"Retailers are under a lot of pressure from consumers to be sustainable, especially on issues such as packaging," said Dr Sally Uren, deputy chief executive of Forum for the Future.
"As these are factors they cannot affect directly, they are having to work with brand owners to deliver. That gives branded suppliers an opportunity to be ahead of the field, but companies who don't take this up, and view it as a risk instead, will see retailers take their business elsewhere."
Coca-Cola said it had already seen retailers putting sustainability criteria on a par with conventional supply criteria. In the US, it said, Wal-Mart already had sustainability on its supplier score card, while in the UK, Tesco recently carried out a packaging audit of its suppliers.
"To a greater or lesser extent at different retailers, collaboration on sustainability is moving into everyday conversations with supermarket buyers," said Joe Franses, Coca-Cola Enterprises head of corporate responsibility and sustainability. "This is fast becoming not an option, but an imperative for long-term profitable growth, not to mention being a good corporate citizen."
Meanwhile, CCE European home channels director Bill Mathieson said one challenge for Coca-Cola was consumer education, as the greenhouse gas impact of a can of Coca-Cola falls 40% if consumers recycle their packaging. This, he said, was the driver behind the unveiling this week of Coca-Cola's first consumer-facing ad campaign targeting recycling.
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