United Nations SDGs: Analysis of FMCG Sector Implementation

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This report provides an in-depth analysis of the implementation of Sustainable Development Goals (SDGs) within the Fast Moving Consumer Goods (FMCG) sector. It identifies key SDGs relevant to the industry, including poverty reduction, hunger eradication, and sustainable production and consumption patterns. The report explores strategies for achieving these goals, such as multi-stakeholder partnerships, investments in agricultural development, and the promotion of sustainable practices throughout the supply chain. It also acknowledges the challenges and risks associated with implementing SDGs in a competitive business environment, while emphasizing the importance of balancing economic growth with social and environmental responsibility. Ultimately, the report serves as a guideline for FMCG industries seeking to align their operations with global sustainability objectives.
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Running head: UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS
Sustainable Development Goals: Fast Moving Consumer Goods Sector
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SUSTAINABLE DEVELOPMENT GOALS: FAST MOVING CONSUMER GOODS SECTOR
Abstract
The purpose of this report is to shed light on the global goals or Sustainable development
goals of Fast Moving Consumer Goods sector and what strategies can be implemented to
accomplish the objectives. At the same time, the report will also focus on the targets, which
have been set to implement the strategies. Here, at first, the best-related global goals with this
sector have been discussed and implementation strategies have been identified. This report
can be a guideline for future investors and existing FMCG industries working towards
accomplishing sustainable development goals.
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SUSTAINABLE DEVELOPMENT GOALS: FAST MOVING CONSUMER GOODS SECTOR
Table of Contents
Abstract..........................................................................................................................1
Introduction....................................................................................................................3
Sustainable development goals within the FMCG sector..............................................3
Strategies to accomplish sustainable development goals...............................................6
Conclusion......................................................................................................................7
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SUSTAINABLE DEVELOPMENT GOALS: FAST MOVING CONSUMER GOODS SECTOR
Introduction
This report is going to elaborate the process of implementing sustainable development
goals within the FMCG sector. FMCG refers to the fast moving consumer goods. These are
the products, which have a short shelf life and are non-durable too. Either this is because of
high demand in the market or the quality of the products deteriorates if not consumed within
a stipulated duration. For instance, pre-packaged food items, chocolates, soft drinks and juice,
medicines and the cleaning products can be considered. A detail study of Chaklader et al.
(2013) suggests that, consumers purchase these kind of products frequently and do not
engage themselves into detail research before shopping. The marketers experience high
turnover without contributing a large amount. Except retail market, there are fast moving
consumer electronic goods as well, like headphones, cameras, mobile phones, cables and
various digital appliances. The purpose of this paper will be to determine sustainable
development goals within this sector and it will evaluate the goals in terms of its impact on
society and environment. It will further frame some strategies as well in order to implement
the SDGs.
Sustainable development goals within the FMCG sector
UN Global Compact have shortlisted ten major principles in the arenas of society and
environment, which are covering labour, human rights and anti-corruption practices
(Costanza et al. 2014). Considering the food and beverage industry as a part of fast moving
consumer goods sector a number of effective principles and initiatives have been taken in
order to achieve sustainable development in the market. Fair trade policy, food loss and waste
protocol, global protocol on packaging sustainability for consumer goods are some of those
initiatives, which are leading towards sustainable development goals (Griggs et al. 2014).
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SUSTAINABLE DEVELOPMENT GOALS: FAST MOVING CONSUMER GOODS SECTOR
There are several instances of joint venture, which influence sustainable development in a
positive way. Hence, the following report will concentrate on determining three most
effective sustainable development goals within the FMCG sector considering the market
opportunities as well as positive impact on the society and environment. United Nation’s
global goals can be crucial to execute, as SDGs are extremely general in nature. The agenda
does not carry a setup, which is more target oriented and can work as a guideline to
implement the goals according to the future requirement. Although, sustainable goals have
been framed keeping only positive outcome in mind, several risks have been identified while
working towards these SDGs. These goals are as follows.
Remove poverty from everywhere : There are several ways by which this goal can be
fulfilled like being a part of multi-stakeholder partnership not only leads to prosperity
but also opening of new business markets enables the opportunity of high future demand.
Therefore, if the example of Unilever and Coca-Cola’s initiative to achieve the goal is
concerned then their recruitment of research teams supported by non-profit organizations
to perform ‘Poverty Footprint Studies’ and the objective is to measure the impact of the
companies’ business operations on population suffering from poverty. These policies
and good practices have enhanced a positive social and economic impact. In
collaboration with Oxfam (eminent non-profit organisation) and a multi-stakeholder
business group, the UN Global Compact decided to launch the ‘poverty footprint tool’ to
measure impacts of corporate decisions on people living with poverty. Agendas
considering poverty are never-ending and the execution is becoming more difficult day
by day in a competitive market where companies’ mentality is profit oriented (Chaklader
et al. 2013). Owners are likely to ignore social contributions. Although, FMGC
industries mostly try to create job and business opportunities still removing poverty from
everywhere in near future seems like a hypothetical situation.
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SUSTAINABLE DEVELOPMENT GOALS: FAST MOVING CONSUMER GOODS SECTOR
Remove hunger in all its forms: One more crisis, which is linked with poverty, is
hunger. The objective is to achieve food security and nutrition for all and promote
sustainable agricultural process in the country (Johnston, Fanzo and Cogill 2014).
Companies are collaborating with farmers, food processing units and retail business
owners to increase the supply, production, storage of the food and efficiency of the
market (Waldmueller 2015). Companies are connecting them internally with the purpose
of developing their potential. Concentrating more on nutritional values before selling
food or beverage because they have started considering this aspect as their social
responsibility. Involving the agricultural farm helps immensely to secure the quality of
the food and satisfaction of the customers (Jones and Ejeta 2016). Moreover, as the
capital is comparatively low, companies can sell them in an affordable price, which
ensures food security to a major part of the population. Engro food limited, Starbucks,
Nestle are some organisations who have taken part in the process of achieving this
sustainable development goal, which has a positive impact on the society. Sustainable
goals come with the purpose of social stability; yet execution will not be easy as almost
every organisation is a part of tremendous competitive business environment where
profit comes first. In this scenario, the thought of removing hunger within a period, is
somewhat surreal.
Achieving sustainable production and consumption pattern of goods: Another
positive influence over the environment can be identified if consumption pattern can be
designed according to the production. In order to avoid deforestation, people can try to
obtain goods like palm oil, soy, beef, paper and pulp. Using natural refrigerants people
can restrict the emission of HFC and the use of chemical refrigerants. Although, it is
difficult for large retail industries to use natural refrigerants to keep the materials fresh.
Fruits and vegetables should be sold fresh in larger proportion than being used for
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SUSTAINABLE DEVELOPMENT GOALS: FAST MOVING CONSUMER GOODS SECTOR
processing. Reducing water and energy consumption while development of products
again can be helpful. While packaging it is important to use elements, which can be
recycled. Joint ventures of stakeholders, suppliers and retail stores are to supervise the
areas of wastage of raw materials and foods. Moreover, consumers should be aware of
the fact that why sustainable structure of production and consumption is necessary in
order to lead a healthy life on our planet. Environmental issues should be dealt with
highest priority, however, the flow of consistent engagement and focus are some variable
aspects and their nature cannot be predicted.
Strategies to accomplish sustainable development goals
These sustainable development goals are undoubtedly beneficial in terms of fulfilling
social, economic and environmental purposes. However, to accomplish the both the global
goals and objectives of the FMGC sector, industry officials should adopt effective strategies
so that each future assumption can be transformed into reality.
With the purpose of reducing poverty, strategies should be instructed towards
developing the present condition of the countries by sustaining the economic growth. It can
be possible if the unutilized areas of the economy can be explored and in order to increase the
productivity and their potential can be enhanced accordingly. Especially, through the
promotional campaigns as well as development of small and medium retail chains and agro
based industries it may be possible to help the society to get rid of poverty (Mutagwaba and
Omore 2015). Simultaneously, a sustainable economic growth for the industries cannot be
denied in an atmosphere like this (Jones, Hillier and Comfort 2016). According to Le Blanc
(2015), strategies are entirely target oriented. A target has been set to make at least half of
the national population free from poverty by 2030.
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SUSTAINABLE DEVELOPMENT GOALS: FAST MOVING CONSUMER GOODS SECTOR
In order to make the country hunger free, therefore the strategy should be to create
more job opportunities to improve the lifestyle of the population coming from poor financial
background. Agro businesses and retail chains itself offer a wide range of job roles to the
young population. Agro businesses also help to achieve desired food security by offering the
society good quality of fruits and vegetables and other nutritious food materials (World
Health Organization 2016). Industries should develop their infrastructure to promote
production of agricultural products while generating employment opportunities for the rural
and unprivileged communities of the nation. These agro-industry based developments
promote innovation and create security of healthy foods at the same time (Winkler et al.
2017). The target is, by 2030, to end hunger issues of people living a poor unhealthy lifestyle
and to end malnutrition among children and women by 2025 (Ahmed et al. 2016).
Considering the changing nature of the global climate, it has become necessary to
execute the strategies in order to serve the environment in a positive way. Strategy for
accomplishing the goal of sustainable production and consumption structure emphasize the
promotion of those industries which practice a hygienic process of production also ensure
efficient resources in the case of developing countries. Environment scientists and engineers
engage themselves being a part of ‘cleaner production programme’ to instruct the firms on
the grounds of production without making any harm to the environment (Bouma 2014). With
the purpose of implementing the strategies, a framework of 10 years has been prepared on the
sustainable pattern of production and consumption of fastest moving consumer goods.
Keeping the agendas in mind all the countries are working towards the objectives while
developed countries are leading, developing countries are trying their best to influence the
outcome.
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SUSTAINABLE DEVELOPMENT GOALS: FAST MOVING CONSUMER GOODS SECTOR
Conclusion
Initially, the purpose of this report was to deliver an insight about the global goals,
which should be taken into account seriously while operating FMCG industry. It can be
concluded at the statement that formerly discussed three major SDGs are essential in order to
observe social and economic purposes along with the growth of the companies. The strategies
if implemented in a proper way the target related to the goals can be achieved. Although, it is
difficult to predict future yet, if the missions can be accomplished partly as well, it will be
considered as a success and further planning can be done considering the contemporary
situation. Therefore, this report can be helpful for the FMCG industries to estimate their
objectives if they are thinking of the world as a better place to live.
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SUSTAINABLE DEVELOPMENT GOALS: FAST MOVING CONSUMER GOODS SECTOR
References
Ahmed, S.M., Rawal, L.B., Chowdhury, S.A., Murray, J., Arscott-Mills, S., Jack, S., Hinton,
R., Alam, P.M. and Kuruvilla, S., 2016. Cross-country analysis of strategies for achieving
progress towards global goals for women’s and children’s health. Bulletin of the World
Health Organization, 94(5), p.351.
Bouma, J., 2014. Soil science contributions towards sustainable development goals and their
implementation: linking soil functions with ecosystem services. Journal of plant nutrition
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Chaklader, B., Sharma, R.K., Khatun, R. and Goel, P., 2013. Relationship of Working Capital
Management with FMCG Sector Firm’s Profitability. International Journal of Trends in
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Costanza, R., McGlade, J., Lovins, H. and Kubiszewski, I., 2014. An overarching goal for the
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Griggs, D., Smith, M.S., Rockström, J., Öhman, M.C., Gaffney, O., Glaser, G., Kanie, N.,
Noble, I., Steffen, W. and Shyamsundar, P., 2014. An integrated framework for sustainable
development goals. Ecology and Society, 19(4).
Johnston, J.L., Fanzo, J.C. and Cogill, B., 2014. Understanding Sustainable Diets: A
Descriptive Analysis of the Determinants and Processes That Influence Diets and Their
Impact on Health, Food Security, and Environmental Sustainability–. Advances in
nutrition, 5(4), pp.418-429.
Jones, A.D. and Ejeta, G., 2016. A new global agenda for nutrition and health: the importance
of agriculture and food systems. Bulletin of the World Health Organization, 94(3), p.228.
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SUSTAINABLE DEVELOPMENT GOALS: FAST MOVING CONSUMER GOODS SECTOR
Jones, P., Hillier, D. and Comfort, D., 2016. The sustainable development goals and
business. International Journal of Sales, Retailing and Marketing, 5(2), pp.38-48.
Le Blanc, D., 2015. Towards integration at last? The sustainable development goals as a
network of targets. Sustainable Development, 23(3), pp.176-187.
Mutagwaba, C. and Omore, A.O., 2015. Partners for Tanzania dairy value chain research and
development: A scoping study.
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