Three in five companies implemented a sustainability strategy in 2024
A drone aerial view of a green logistics hub, highlighting the integration of nature with logistics facilities for environmental sustainability
According to data revealed by Euromonitor International, more than 60% of global businesses implemented a sustainability strategy in 2024 but only 10% believe they are communicating their sustainability strategy effectively.
Findings from Euromonitor’s new Passport Sustainability platform show that in 2023, 20% of all sales globally were of products featuring sustainable claims. These products have achieved, on average, 1.5% higher sales growth than non-sustainable products over the past four years.
Passport Sustainability helps businesses track performance of sustainability claims, understand consumer sentiment and craft effective strategies. The comprehensive and upgraded platform covers 11 industries, 25 global markets, 50 product categories and more than 70 different sustainability claims. Euromonitor has surveyed over 40,000 consumers and 900 professionals to understand their sustainability challenges.
Guarding against greenwashing
Maria Bogdanova, senior product manager for sustainability at Euromonitor International, said that the effectiveness of sustainable products hinges on clear and honest communication to guard against claims of greenwashing. “While ‘natural’ remains the leading sustainability claim in value sales, its vague nature has raised concerns about greenwashing. This issue is particularly prominent in the beauty, personal care and pet care industries, where 39% and 37% of products, respectively, feature ‘natural’ claims in 2023. Regulatory bodies in the EU and several US states are responding to these concerns, with upcoming bans on
unsubstantiated sustainability claims.”
Top three value sales claims
Beyond natural, clean labels such as organic and no GMO and diet claims like vegan and vegetarian ranked among the top three in value sales across packaged food, beauty and personal care, pet care and consumer health in 2023.
Bogdanova said the shift away from animal-based products continues to gain momentum in the food industry. Sales of vegetarian products increased across all food categories in 2023. “The presence of these products on shelves varies significantly by category. Breakfast cereal leads the way, with over 20% of all products featuring a vegetarian claim in Q2 2024, followed by sweet biscuits, snack bars and fruit snacks at a distant second with only 9%. Looking ahead, the share of vegetarian, vegan, and plant-based products is expected to grow, driven by aggressive investments in private label ranges from major global retailers like Tesco, Walmart, Albert Heijn, Carrefour, and Lidl.
The vegan claim also makes significant inroads beyond food, particularly in beauty products, as consumer concerns over animal cruelty and environmental impact grow. Consumers are increasingly wary of animal-derived ingredients, prompting brands to innovate with plant-based alternatives that align with their sustainability goals. Unsurprisingly, cruelty free emerged as a close third in the top value sales claims in the industry.
Motivations for investments
Improving customer perceptions and enhancing brand reputation are the primary motivations behind companies’ investments in sustainability, according to Euromonitor International’s 2024 Voice of the Industry Sustainability Survey.
Bogdanova said companies face a delicate balancing act – they must avoid calls of greenwashing, overstating or falsely claiming sustainability efforts while also addressing the emerging concern of greenhushing, underreporting or downplaying sustainability initiatives due to fear of scrutiny.
Spotlight on Zero Waste and B Corp
Zero waste and B Corp are the most frequently recurring claims among the top five fastest-growing sustainability value sales claims across 11 industries. Each claim ranks among the fastest-growing in three industries, indicating that companies in the Fast-Moving Consumer Goods (FMCG) sector are increasingly pursuing these certifications.
The zero waste claim reflects a commitment to achieving a circular economy, where companies systematically take on the opportunity to reduce raw material use and minimise waste.
Bogdanova said that B Corp certification, which signifies a company’s commitment to social and environmental performance, accountability and transparency, is also gaining traction. With over one-fifth of global consumers preferring to buy from purpose-driven businesses, more companies are seeking B Corp certification to demonstrate their commitment to sustainability and avoid greenwashing accusations. Obtaining B Corp certification is no small feat and the process can be lengthy.
The beauty industry is a leader in the number of B Corp certified products, with established brands like The Body Shop and emerging players such as Dr Hauschka and Elemis that have embraced the certification. This trend is also spreading to other sectors, with the staple foods and snacks number of SKUs with B Corp claims increasing by 49% and 40%, respectively, over the last two years.
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