Sustainability is no longer just a trend in retail; it’s the standard. Driven by changing consumer expectations and global urgency around climate action, retailers in 2025 are innovating in ways that align their operations with environmental, social, and governance (ESG) goals. According to the UN’s Sustainable Development Goals (SDGs), action from every sector is essential to address climate change, reduce waste, and ensure ethical labour practices—and retail is no exception. For retailers, embracing sustainability isn’t just about compliance; it’s about meeting the needs of today’s conscious consumer, reducing environmental impact, and building a resilient business model.
Here’s how retailers are leading the charge toward a sustainable future:
1. Sustainable sourcing and transparent supply chains
In addition to lowering CO2 emissions and producing products out of recycled plastic and hemp, many retail organisations are now seriously looking at reducing floor space in head offices to accommodate a hybrid working model, as part of far-reaching efforts to instill a culture of sustainability within. This includes exploring innovative ways that they can facilitate worker flexibility, without impairing the quality of staff output. For larger retailers, this transition to a blended working environment might be relatively straightforward, but for the retailers who had yet to go all-in on digital, or with ageing infrastructure and communications tools, the innovation chasm will feel difficult to bridge. Expleo is passionate about leveling the playing field in this regard, and helping digitally-nascent retailers, or late digital bloomers, navigate the evolving retail landscape with a greater degree of confidence in 2022 and beyond.
2. Circular economy: reducing waste, extending product life
One of the most effective strategies for reducing waste in 2025 is the circular economy model. Aligned with SDG 12, retailers are actively encouraging product repair, reuse, and recycling to minimise the environmental impact of production and consumption. Many brands are implementing buy-back programs, where customers can return used products for resale, recycling, or upcycling. For instance, fashion retailers are pioneering in-store and online programs where used clothing is refurbished and resold, cutting down on textile waste and extending product lifespans.
Moreover, some retailers are innovating with rental and subscription models that offer customers access to high-quality items without the commitment to own them. This approach not only reduces the demand for new products but also promotes sustainable consumption patterns.
3. Carbon reduction commitments and net-zero goals
With climate change as one of the most pressing challenges, retailers are now committed to cutting their carbon footprint. Many brands are setting ambitious targets to align with SDG 13: Climate Action, aiming to achieve net-zero emissions by 2030 or sooner.
This commitment is being met through various carbon reduction initiatives, including renewable energy sources, energy-efficient lighting, and sustainable logistics. Retailers are also rethinking their shipping practices, focusing on greener options and local sourcing to cut down on emissions. Some retailers have adopted carbon offset programs, supporting reforestation or renewable energy projects to neutralise their impact.
4. Sustainable packaging and plastic-free initiatives
Plastic waste remains a huge environmental issue, and retailers are under pressure to minimise it. By 2025, many retailers are moving towards biodegradable or fully recyclable packaging in line with SDG 14: Life Below Water, which seeks to reduce marine pollution. Retailers are also investing in innovative, low-impact packaging solutions, such as reusable or compostable materials, and are pushing suppliers to eliminate single-use plastics entirely.
Consumers increasingly prefer brands with eco-friendly packaging, making sustainable packaging a key differentiator. Major brands are also offering refill stations for everyday products in-store, allowing customers to bring their containers to reduce packaging waste.
5. Fair labor practices and social sustainability
Sustainability extends beyond environmental impact. SDG 8: Decent Work and Economic Growth encourages fair labour practices, and retailers are increasingly committed to upholding ethical standards throughout their supply chains. In 2025, this means ensuring that workers are paid fair wages, have safe working conditions, and are treated with respect at every stage of production.
Retailers are using technology to monitor compliance, often implementing third-party audits or blockchain-based solutions for greater visibility. These measures foster a culture of corporate responsibility, appealing to ethically minded consumers and helping to build resilient supply chains that prioritise people as well as profits.
6. Digital transformation to reduce environmental impact
Digital transformation is key to helping retailers improve sustainability. Using artificial intelligence, big data, and IoT, brands can optimise inventory, reduce waste, and monitor energy usage in real-time. By 2025, many retailers have adopted AI to predict demand and prevent overstocking, a common cause of waste. IoT sensors track energy use in stores and warehouses, enabling proactive measures to reduce consumption.
Furthermore, digital solutions allow for personalized, low-impact shopping experiences, such as virtual try-ons and online sizing tools, reducing returns and their associated emissions. This approach supports SDG 9: Industry, Innovation, and Infrastructure, demonstrating how technology can drive sustainable progress.
7. Green Future for Retail
In 2025, sustainability in retail is more than a strategy; it’s a commitment to creating value while minimising harm to the planet and society. By embracing sustainable practices, from transparent sourcing to digital innovation, retailers are leading the charge toward a greener, more ethical future. For customers, these efforts offer peace of mind that the brands they support are aligned with their values—proof that sustainable retail is the path forward.
