Cara Smyth from Accenture on ESG, Repsonsible Retail and more

Christine Russo hosts Cara Smyth, Global Senior Managing Director ESG, Responsible Retail at Accenture, on "What Just Happened."

The conversation delves into the evolving landscape of sustainability terminology, such as ESG, corporate social responsibility, and sustainability itself. Cara highlights the risk of drifting away from profitability and stresses the importance of chasing waste out of the system to enhance efficiency and profitability. They also discuss the challenges and opportunities for businesses, especially in the retail sector, to align with changing regulatory landscapes and effectively engage with suppliers to drive positive change.

 

Cara addresses the challenges faced by small and large brands in navigating the sustainability journey. Larger companies, having already committed to science-based targets and ESG goals, are on the path to remediation and change. Smaller companies are encouraged to learn from the lessons of larger ones and leverage their agility to implement sustainable practices. The discussion underscores the necessity of collaboration, data-driven decision-making, and responsible retail practices for a more sustainable future in the retail industry.

Christine raises concerns about the risks faced by smaller companies, particularly suppliers, in the evolving landscape of sustainability regulations. There is a perceived challenge for smaller suppliers to keep up with compliance requirements and sustainability standards, potentially putting them at a disadvantage compared to larger, more professionalized companies. The risk is accentuated by the possibility of bigger companies consolidating around suppliers that can efficiently manage data exchange and meet sustainability needs.

 

The conversation then shifts to the complexities of regulatory compliance, especially in the "messy middle" where the specifics of evidence and requirements for sustainability practices are not yet clear. The speaker emphasizes the need for a transparent and evidence-based approach to demonstrate compliance, particularly in areas such as labor conditions and environmental impact. The evolving regulatory landscape is noted, with government bodies, including the Securities and Exchange Commission, showing interest in sustainability reporting.

 

The emphasis is on the need for a multidisciplinary approach to drive responsible business practices across different sectors.

 

In the latter part of the conversation, the speaker reflects on the global landscape of sustainability, suggesting that Europe, driven by regulatory pressures, is ahead of the United States. The importance of a global baseline for sustainability practices is stressed, with the hope that European initiatives will catalyze change worldwide. The discussion concludes with insights into the Fashion Conveners report, which aims to address the fragmentation and lack of alignment within the non-profit sustainability community, ultimately working toward more effective collaboration and support for industry leaders.