In a market that’s more climate-conscious than ever, simply minimising environmental impact is no longer enough. Consumer Packaged Goods (CPG) companies are recognising that true sustainability means moving beyond “do less harm”, to actively regenerating the natural systems their organisations depend on. Recent data shows that 73% of global consumers are willing to change their consumption habits to reduce environmental impact, while 66% of all consumers, and 73% of millennials, are willing to pay more for sustainable brands.
In this blog post, we’ll explore why regenerative supply chains matter, the compelling business case for regenerative practices, and a practical roadmap to implement these changes within your own CPG supply chain. We’ll also examine the challenges companies may face and offer solutions to overcome them, empowering you to take action for a more sustainable future.
Why regenerative supply chains matter
The linear take-make-waste model is becoming increasingly unsustainable, both environmentally and economically. CPG companies lose approximately $100 billion annually to wasteful supply chain practices, while the food and beverage industry alone accounts for 26% of global greenhouse gas emissions.
Perhaps most striking is that 90% of companies’ environmental impacts occur in their supply chains. These statistics paint a clear picture: the way we currently manage supply chains is not just environmentally destructive, it’s economically unsustainable.
The business case for regenerative practices
Transitioning to regenerative supply chains goes beyond environmental responsibility; it’s strategically necessary to secure your business’s future. Companies that have embraced regenerative practices report 10-30% reductions in operational costs through circular economy initiatives. One study by The Food, Farming and Countryside Commission showed a 78% increase in profitability, despite a 29% decrease in yield after adopting regenerative farming practices. Beyond immediate cost savings, organisations are building resilience against supply chain disruptions and rising input costs, while putting themselves in the best position for upcoming regulations.
The market advantages are just as compelling. As consumers become increasingly environmentally conscious, brands with proven regenerative practices are capturing premium market segments and building customer loyalty through trust and transparency. With 55% of US and UK consumers saying their trust in brands is at an all-time low, early adopters have an unreplicable opportunity to establish themselves as leaders in regenerative supply chains and gain consumer trust.
The roadmap to regenerative supply chains
Phase 1: Assessment and Baseline
The journey begins with a comprehensive understanding of your current supply chain impact. This is a crucial phase involving detailed mapping of your supply chain’s environmental and social footprint, identifying key intervention points where regenerative practices can create the most significant impact. Evaluate the sourcing of raw materials, manufacturing processes, transportation, and end-of-life management. Working with experienced sustainability partners during this phase is vital in establishing meaningful baseline metrics and setting achievable targets that align with your business objectives.
Phase 2: Strategy Development
With a clear understanding of your starting point, the next step is crafting a robust strategy to guide you. You’ll define what regenerative principles mean for your organisation and how they fit with your business goals. Engage key stakeholders across departments to outline a well-rounded view of your ambition and secure organisational buy-in. Your strategy should outline clear governance structures and implementation timelines while remaining flexible enough to adapt to changing conditions and any emerging opportunities.
Phase 3: Implementation
The implementation phase is putting strategy into action through three key areas. First, supplier engagement becomes crucial as you work to build capacity and bring goals in line across your supply network. Process transformation follows, where you’ll integrate circular packaging solutions and regenerative agriculture practices into your operations. Finally, you’ll bring in industry-leading solutions to make sure you stay transparent and accountable throughout your supply chain.
Overcoming implementation challenges
The path to regenerative supply chains often reveals capability gaps within organisations. Limited internal expertise, resource constraints, and technical knowledge gaps can slow progress to a stop in many cases. Additionally, getting everyone in your organisation on the same page can prove challenging as departments work to overcome silos and coordinate priorities. The complexity of modern supply chains, with their multiple tiers and geographic dispersion, adds yet another layer of challenges to the transformation process.
Our embedded sustainability teams provide the expertise and support needed to navigate these challenges successfully. We work alongside your team to develop comprehensive roadmaps, set meaningful goals, and implement effective change management strategies.
Taking action for a more sustainable future
Ready to begin your journey towards a regenerative supply chain? The Seismic team will help you navigate the transition successfully. We understand that every organisation’s path is unique, and we tailor our support to meet your specific needs and challenges.
Talk to one of our experts and learn how we can help you build a more resilient, regenerative future for your business.
