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Sustainable Retail: Five Key Trends for Businesses in 2025

How can your retail business thrive in the changing sustainability landscape? In this blog, we’ll explore key trends shaping the future of retail, including compliance with climate and labor laws, the rise of circular business models, the role of technology in sustainability, renewable energy investments, and creative ways to engage eco-conscious customers.

Green Business Benchmark°

Published

July 24, 2025

Read time

Min

Sustainable Retail: Five Key Trends for Businesses in 2025

In this article

Retailers in the US and Canada are facing growing compliance requirements, shifting consumer expectations, and new opportunities to innovate through circularity, technology, and renewable energy. From climate disclosures to customer engagement initiatives, the path forward is clear: companies that embed sustainability in the way they do business will not only meet regulatory demands but also unlock new revenue streams, build stronger customer loyalty, and future-proof their operations.

So, how can your retail business thrive in this new era of sustainability?

In this blog, we’ll explore key trends shaping the future of retail, including compliance with climate and labor laws, the rise of circular business models, the role of technology in sustainability, renewable energy investments, and creative ways to engage eco-conscious customers.

1. Compliance Requirements Are Increasing and Expanding

As sustainability takes center stage, compliance requirements for retailers around the world are becoming more stringent. New regulations including climate disclosures, packaging waste, and labor transparency, are reshaping how businesses operate.

Climate Disclosures and Emissions: California’s Climate Corporate Data Accountability Act (SB 253) and Canada’s upcoming mandatory climate-related disclosures require large retailers to report GHG emissions and outline their risk planning.
Packaging and Waste: Extended Producer Responsibility (EPR) laws - covering some states in the US and provinces in Canada - shift responsibility for packaging waste to retailers and producers, spurring change towards more recyclable and compostable packaging materials.
Labor and Supply Chain Transparency: US laws like the Uyghur Forced Labor Prevention Act and Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act mandate transparency and action against labor issues.

Staying ahead of these growing compliance demands not only ensures companies avoid penalties, it also presents an opportunity to build trust, transparency, and lead the way in sustainable retail.

2. The Future of Retail is Grounded in Circularity & Recommerce

Implementing circularity into your retail business offers a clear opportunity to reduce costs, meet growing consumer demand for sustainability, and unlock new revenue streams. It shifts the focus from a traditional "take-make-waste" model to one that prioritizes reuse, repair, and recycling.

Retailers in large global markets like the US, Canada, and EU can implement circular programs (e.g. buy-back initiatives or resale platforms) to extend product lifecycles and reduce waste. For example, a regional furniture retailer could introduce a trade-in program for used items, while a clothing chain might launch a resale marketplace for pre-loved apparel. These efforts minimize environmental impact while also differentiating your brand in a competitive market.

With the resale market booming across North America and Europe, building in more circular business practices is a smart way to align with consumer values, enhance your brand’s reputation, and drive profitability.

3. Tech & Data is Pivotal for Managing Sustainability Efforts

Retailers can leverage the power of AI, software, and advanced analytics to identify opportunities to save energy, water, and materials throughout their stores and supply chains. Green Business Benchmark’s sustainability performance management software is designed to help retailers identify inefficiencies, track resource usage, and reduce waste across their operations.

Green Business Benchmark empowers retailers to achieve their sustainability goals with centralized data and actionable insights, delivering measurable cost savings - an essential advantage for businesses looking to scale responsibly and efficiently. For example, through its use of the GBB platform, global outdoor apparel retailer Fjallraven was able to make a quantifiable impact on a number of its sustainability initiatives including a 7.55% reduction in electricity usage and an average 28 point increase in its GBB certification scores across its North American locations.

4. Renewable Energy Commitments Are Growing

Many retailers are investing in on-site solar arrays, signing large-scale renewable power purchase agreements, or increasing their use of green electricity. For example, a regional grocery chain could follow the lead of larger corporations by committing to 100% renewable electricity for its operations.

Many local governments and organizations in the US and Canada offer grants or incentives to support these transitions, making renewable energy a financially sound investment for mid-sized retailers. In the US, the Federal Investment Tax Credit (ITC) allows businesses to deduct a percentage of the cost of installing solar energy systems from their federal taxes. As of 2025, the credit is set at 30% for eligible projects, making solar installations more affordable for mid-sized retailers. In Canada, Ontario’s Save on Energy Program helps Ontario businesses access incentives for energy efficiency and renewable energy projects, including rebates for solar installations and energy storage systems.

These moves not only cut emissions but also insulate retailers from fluctuating energy costs.

5. Creative Initiatives Keep Customers Engaged

Retailers are rolling out creative programs to encourage sustainable habits among shoppers. Plastic bag bans have taken effect in dozens of US states and several Canadian provinces, reflecting public demand for greener options and changing the expectations for the entire retail sector. Offering loyalty rewards for customers who bring reusable bags or containers, hosting “take-back” events for used products, or introducing in-store recycling stations are all effective ways to connect with eco-conscious shoppers.

For example, retail stores can offer discounts for reusable bags, while regional furniture retailers could host recycling events for old furniture. These initiatives not only enhance customer loyalty but also position your brand as a sustainability leader.

Final Thoughts

The future of retail is sustainable, transparent, and innovative. By staying attuned to compliance - especially around climate, labor, and packaging - and embracing new trends, retailers can keep pace with consumer expectations and stand out in a competitive market. Building sustainability into your retail business presents a strategic opportunity to grow, creating positive impact for people, planet, and business. Learn more about how GBB helps retailers manage and improve their sustainability performance.

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