Consumer Goods
This sector relates to the following sub-sectors: Apparel & Textiles, Consumer Discretionary Products, and Consumer Goods Retail.
Consumer Discretionary Products
Each section below relates to the TPT Disclosure Framework principles of Action and Accountability. The below provides further guidance for sub-elements 4.1 and 4.3. The TPT welcomes comments on this guidance to ensure it is as useful as possible for preparers and users. The text is open for comment until Friday, 24 November. Please select the feedback form at the bottom of the page. The final text will be updated in February.
This sub-sector includes companies involved in appliance manufacturing, building products & furnishing, household & personal products industries.
Appliance Manufacturing industry entities design and manufacture household appliances and hand tools. Entities in this industry sell and manufacture products all over the world, primarily selling products to consumers through retailers.
Building Products & Furnishings industry entities design and manufacture home improvement products, home and office furnishings, and structural wood building materials. The industry’s products include flooring, ceiling tiles, home and office furniture and fixtures, wood trusses, plywood, panelling and lumber.
Household & Personal Products industry entities manufacture a wide range of goods for personal and commercial consumption, including cosmetics, household and industrial cleaning supplies, soaps and detergents, sanitary paper products, household batteries, razors and kitchen utensils. Household and personal products entities operate globally and typically sell their products to mass merchants, grocery stores, membership club stores, drugstores, high-frequency stores, distributors and e-commerce retailers.
1. Enhance energy efficiency and electrify manufacturing processes6, 7,
- address energy consumption on both a holistic and per-product basis (e.g. reducing standby power in household appliances);
- transition to renewable electricity sources; and
- utilise electric-powered machinery and streamline manufacturing to minimise waste (e.g. CNC machines in furniture production).~
2. Adopt sustainable product design & manufacturing6, 7
- prioritise materials with a lower carbon footprint, (e.g. sustainably sourced wood for furniture and building materials);
- reduce CO2 emissions throughout the product lifecycle;
- enhance product energy efficiency (e.g. consumption or reducing standby power);
- reduce product volume and weight (e.g. compact, and multi-use household appliances or modular furniture designs);
- minimise negative environmental impact of the product (e.g. using biodegradable packaging for personal care items); and
- reduce the use of hazardous chemicals.
3. Electrify fleet & promote low-emissions fuels for last-mile delivery6, 7
- increase electric vehicles use between warehouses and delivery, supplemented with shared charging infrastructures;
- advocate for lower cost, low-GHG emissions fuels; and
- optimise routes with EV charging redesign and enhanced driver training.
4. Promote circular product design & waste management3, 6, 7
- increase the use of recyclable and recycled materials;
- improve product design for easy disassembly;
- measures to increase waste recycling rates;
- minimise incineration without recovery and landfill disposal, steering the industry towards a more closed-loop model; and
- collaborate with downstream and upstream partners to boost innovations in recycling or repurposing of product components.
5. Decarbonise the supply chain7
- procure green products and encourage upstream partners to adopt green practices;
- incorporate low-GHG emissions clauses in contracts; and
- funding for innovative material research and data for validation studies.
- percentage of eligible products by revenue certified to an energy efficiency certification;5
- percentage of eligible products by revenue certified to an environmental product lifecycle standard;5
- total energy consumed (GJ), percentage grid electricity, percentage renewable;5
- weight of end-of-life material recovered (metric tons);5
- percentage of recovered materials recycled;5
- percentage of total sales are attributable to commodities linked to climate change risks (e.g. timber, cotton, leather, soy, palm oil);6, 7
- percentage deforestation-linked primary commodities sourced as deforestation & conversion free (by volume);6,7
- target for 100% biodegradable, compostable, recyclable, or reusable packaging;8
- target for 100% recycled or sustainably sourced packaging content;8 and
- target for use of post-consumer recycled materials in packaging3.
- Scope 1 and 2 emissions intensity metric tCO2e reduction per unit of currency total revenue;1
- Scope 1 HFC emissions in tCO2e, e.g from refrigerant and aerosols;1 and
- Scope 3 targets for carbon efficiency performance across the product lifecycle1.
Consumer Discretionary Products literature
- CDP, CDP Climate Change 2022 Reporting Guidance, 2022
- CDP Worldwide & ADEME, Assessing Low-Carbon Transition: Generic, 2021
- EY Parthenon, Wrapping sustainability goals into packaging | EY – US, 2022
- Global Canopy Forest 500, Company Selection Methodology 2022, 2022
- IFRS, [Draft] Industry-based Guidance on Implementing IFRS S2, 2022
- Make UK, Manufacturing Sector Net Zero Roadmap, 2022
- The Consumer Goods Forum & Accenture, Net Zero Playbook for Consumer Industries, 2022
- WWF, WWF Basket Metric – Tesco, 2022
- WRAP, Carbon Waste and Resources Metric , 2021
Your feedback
The TPT welcomes comments on the Sector Summary to ensure it is as useful as possible for preparers and users. The Sector Summary was open for comment until Friday 24 November and, following consideration of the feedback received, will be updated in February. Thank you to the industry experts who provided comments.
