The spouting whale

While many environmental/sustainability groups are calling on retailers to use their leverage on suppliers to bring sustainability to the forefront, the feeling now at the FMI Summit is that retailers are just starting their own initiatives and aren't ready to take on - or perhaps take along - their suppliers.

During one question and answer session today after a presentation by a retailer panel, there were a couple of extremely relevant questions:

Have retailers been able to measure the impact of sustainability activities (such as LEED energy certification of stores) on their top line revenues? Short answer - not yet. the many variables of retailing make such measure problematic. Right now, perhaps the best measure of sustainability are sales of reusable bags.

Another great question: what do retailers want from suppliers relative to sustainability and how much will they pay for it?

Again, no solid answers on this, but one retailer noted his organization was wary of blowing its own horn too loudly about sustainability, observing that his organization has a saying, "It is the spouting whale that gets harpooned."

Retailers are moving on sustainability, but they don't want to be accused of being opportunistic. Most suppliers don't need to worry just yet about mandates from their buyers regarding sustainability, although they need to be engaged in conversations about what retailers are thinking relative to agricultural water use, which is considered the next "hot button" issue in the context of sustainable agriculture.

One thing is certain; momentum for the issue is increasing and staffing levels for sustainability are headed higher for many chains. The subtitle of the conference; Sustainability: tipping point or tidal wave - suggests that "short lived fad" is not an option. Indeed, as more and more retailers have top level buy-in, internal and external expectations will only grow.