CPG

This article explores the strategic rationale driving a growing number of Consumer Packaged Goods (CPG) company boards to approve vertical integration of their supply chains. Key drivers include strengthening ESG performance, mitigating climate risk, addressing investor activism, and securing supply chains in a geopolitically polarized world.

Given the centrality of palm oil to CPG product development and production, board directors will have to understand the current operational, greenwashing risks to their sourcing of the critical raw material. Moreover, board members will have to guide companies on EUDR (European Union Deforestation Regulation), which looks to increase due diligence and reporting on deforestation-free products.

ESG’s role in corporate transparency, accountability, and reputation-building is well established, but less is known about its financial ROI. Here are 13 ways that companies can achieve higher ROI through ESG.

Rather than treating climate risk as just another compliance exercise, businesses should invest the necessary time and resources to capture value (or avoid loss) as the world transitions to hotter weather and a carbon-free economy.