Future of Retail 2025: How ESG Principles Are Shaping Supply Chain Resilience

Takeaways

• Retail leaders at the FT Live Future of Retail 2025 event discussed how geopolitical instability, sustainability pressures, and technological change are reshaping global supply chains.
• Companies like Unilever and AWWG are focusing on resilience, traceability, and local production to navigate challenges.
• Blockchain technology is emerging as a key tool for data transparency, trust, and efficiency across the supply chain.

In an era marked by constant disruption, from geopolitical tensions to climate-induced crises, business leaders at the FT Live Future of Retail 2025 conference in London agreed on one thing: Resilient supply chains are essential for survival.

“Constantly adjusting supply chains is the new norm,” said Victoria Cuthbert, Chief Product Supply Chain Officer for Personal Care at Unilever, during a panel discussion moderated by the Financial Times’ Andrew Hill. Cuthbert explained that Unilever had built on tools developed during Covid-19 to manage today’s volatile environment, which includes the effects of Brexit, Trump-era tariffs, and ongoing wars.

“We’re constantly thinking about where we produce things and how we route things,” she said, noting that Unilever is shortening its European supply chains to reduce emissions and enhance resilience. Producing closer to home, she added, offers both ESG benefits and faster, more reliable delivery times.

Read More: ESG Voices: Optimising The Global Supply Chain

Cuthbert emphasized that boards are now prioritizing supply chain investments, recognizing their potential to secure market share. “Thanks to Covid-induced disruptions, supply chains are front and centre as an issue in boardrooms now,” she said.

AWWG’s Chief Operations Officer, Iván Vender, whose group owns fashion brands such as Pepe Jeans and Hackett, stressed the need to balance service quality, price, and sustainability. “Getting the balance right in the supply chain helps this,” he said. “Collaborating with partners to give us end-to-end visibility is also important,” he added, highlighting traceability as a continued ESG driver, even in what he described as “anti-woke times.”

Echoing this sentiment, Eleanor Harrison, CEO of The Fairtrade Foundation, urged retailers to uphold ethical practices despite economic pressures. “Buy in an ethical way even as you navigate these present storms,” she said, noting that fairtrade and organic product sales are up 40%, proof that consumer trust in sustainable products remains strong.

Adding a technological perspective, Ásgeir Óskarsson, Managing Director of the BSV Association, emphasized that blockchain and AI can enhance supply chain transparency. “Your supply chain is a solid foundation for your business. But tech can underpin and enhance it via good data and AI usage,” he explained. Blockchain, he argued, offers a cost-effective way to ensure verifiable data and trust, an increasingly valuable commodity following high-profile cyberattacks on brands like Jaguar Land Rover.

Also Read: ESG Progress Calls for Improved Supply Visibility

The panel agreed that agility and innovation are now business imperatives. As Cuthbert concluded, markets like China, where direct-to-consumer (D2C) retail dominates, offer a glimpse of the sector’s future. “The direct-to-consumer (D2C) market is a much bigger segment for us there. Indeed, I’d suggest you look to China to see the future direction we are heading towards as an industry,” she said.

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Source: RETAIL TECHNOLOGY INNOVATION HUB