The Uptake of Sustainable Shopping

By Jorge Muñiz

If we were to run a survey to understand the reasons that have accelerated public concern about sustainability, we would discover a collection of events that may have catalyzed the move towards sustainability. Whilst Covid-19 would currently rank top of the list, the reality is that the sustainability topic has been on the corporate agenda for many years now. With the 17 Sustainable Development Goals (SDGs), the United Nations themselves articulated 5 years ago that a worldwide collective effort is needed to secure a more sustainable world.

The topic however is now more mainstream than ever before, and consumers seem to have taken the lead. When it comes to our industry alone, and according to research from M1nd-set, 84% of travel retail and duty-free shoppers think a greater focus on sustainability by manufacturers has a positive impact on their perception of a brand, whilst 74% feel that a greater focus on sustainability increases the likelihood of them purchasing a brand.

The heightened visibility of sustainability efforts may well make a bigger impact compared to just a couple of years ago. However, before going any deeper, let´s revisit the basics of sustainability.

Evolution of ESG

The story of corporate sustainability has evolved over the years, going from purely charity contributions, to a more comprehensive effort. The term ESG better encapsulates what is known as Sustainability and includes Environmental, Social and Governance issues.

• Environmental dimensions include a company’s energy use, waste, pollution, natural resource conservation and treatment of animals, as well as the assessment of the environmental risks a company might face and how the company is managing those risks
• Social looks at the company’s business relationships with employees (for example, offering fair working conditions as well as a healthy and safe working environment, promoting diversity and inclusive practices, etc.), suppliers (how the company works to ensure suppliers hold the same values the company claims to hold), communities (charity activities, relationships with the local community)
• Finally, governance includes issues related to the running of the company itself: accounting practices, governance bodies, shareholders rights, guarding against corruption and bribery, legal compliance… these are just a selection of the topics covered under this dimension.

What does Dufry look like in terms of sustainability?

The short answer is “We look good!”, but we also have scope to improve even more! Within our industry, Dufry holds a very advanced position. As indicated in issue 37 of Dufry World, we have a clear ESG strategy which is embedded in our business model and that enables our company to consistently advance its sustainability commitment.

Engaging with the consumer

Dufry is by nature a consumer-focused company, and all we do has to be geared to giving our customers a superior shopping experience. It´s true that an airport shopper behaves differently when it comes to impulse buying, gifting, or treating oneself, but not when it comes to sustainability. In fact, research shows that when it comes to sustainability related consumer behavior, 64% of consumers are willing to pay a premium price for more sustainable products.

This is something that’s very much recognised by all manufacturers, who are making significant progress in enlarging their portfolio of sustainable products. The golden question is… what makes a product more sustainable than another? Continuing with the above-mentioned research piece from M1nd-Set, the most important consumer concerns about sustainable consumption include:

1. Buying products that are sustainably sourced, respecting the environment (i.e. Environmental criteria)
2. Buying products that are ethically sourced, respecting social welfare in source markets (i.e. Social)
3. Buying recyclable products (environmental)
4. Buying products that use as little plastic and packing material as possible

Dufry´s plan

Beyond taking each and every opportunity to improve our corporate sustainability performance, as already described in Dufry World 37, Dufry continuously engages with both airport landlords and brand suppliers, joining forces to present customers with what they are looking for. In this context, there are a number of joint initiatives in place to improve in-store communication around sustainability matters and to make them more visible in our stores. We will present these initiatives to you in more detail in the next issue of Dufry World.

As reflected in the 2020 Annual Report, Dufry has shared its short and middle term commitments to ESG, including the phasing out of plastic bags, training of our staff in the sale of alcohol products and the tracking of CO₂ emissions as a first step towards reducing our carbon footprint.

When it comes to products, industry powerhouses such as Estée Lauder, L´Ôreal, L´Occitaine en Provence, Diageo - and a long list of many others - are making big steps forward in this area and Dufry is determined to join them on this journey. As the anticipated lifting of travel restrictions brings our customers back to our stores, it’s a good time get all the elements ready and to continue adapting our offer and communication to this growing sustainable demand. Stay tuned and watch this space!