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Environmental legislation and climate changes could eat up as much as 47 percent of packaged goods companies’ profits by 2018 if they don’t adopt long-term sustainability measures, according to a new report released by A.T. Kearney.
The report, Rattling Supply Chains: The Effect of Environmental Trends on Input Costs to the Fast Moving Consumer Goods Industry, addresses long-term profitability of the packaged goods industry. The findings are based on “future analysis” of how much certain commodities will go up, including oil, cereal, soy and palm oil, and how they will fare under certain environmental, governmental policy and climate situations.
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