ESG in Retail: Driving Value and Responsibility in 2026
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As retailers look ahead to the next phase of growth, Environmental, Social, and Governance (ESG) commitments are becoming part of everyday business strategy. In both the furniture and home & gift sectors, ESG influences how brands source, design, market, and connect with today’s informed, values-led consumers. Sustainability and ethics are no longer side conversations, they’re now key expectations for customers, suppliers, and regulators alike.
Why ESG Now? Shared Pressures and Opportunities
Changing Regulation
New frameworks such as the EU’s Digital Product Passport—set to apply to textiles and furniture—and evolving UK sustainability standards are creating a more consistent approach to transparency. Businesses that prepare early will find it easier to meet compliance requirements and adapt to future changes.
Consumer Demand
Sustainability continues to influence buying behaviour. More than 80% of shoppers want retailers to take an active role in sustainability, while 88% of Gen Z are willing to pay more for products that demonstrate genuine environmental and social responsibility.
Trust and Brand Loyalty
Strong ESG practices build lasting customer confidence and attract like-minded partners. Retailers that communicate clearly and demonstrate real progress are creating stronger, more resilient brands in the long term.
Spotlight: Sector Trends and Innovations
Furniture
Sustainable Materials
Designers are turning to modular furniture, reclaimed wood, and plant-based fabrics. Easy-to-repair and disassemble products are gaining traction, and sustainability-focused lines are expected to drive 30–40% of sector growth in 2026.
Circular Economy
Repair and refurbishment programmes, take-back schemes, and resale platforms for pre-loved furniture are becoming more common, supporting a shift towards circular design and longer product lifecycles.
Compliance and Traceability
Digital product passports are creating greater visibility across the supply chain. Buyers can now see details on material origins, recyclability, and production practices—supporting trust and meeting new EU regulations.
Practical Steps for Furniture Retailers and Exhibitors
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Invest in systems that improve traceability and circularity.
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Prepare teams for compliance requirements, including the EU Digital Product Passport.
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Highlight the journey behind each product—its origin, materials, and design story—both online and at events.
Home & Gift
Slow Gifting and Artisanal Production
Consumers are increasingly drawn to refillable, reusable, and upcycled gifts, alongside ethically produced home accessories that combine design with purpose.
Local and Ethical Sourcing
Buyers are seeking authentic connections with suppliers and value transparency at every stage of the supply chain. Locally made and responsibly sourced collections continue to capture attention.
Packaging and Presentation
Sustainable packaging is evolving, with compostable, minimalist, and design-led formats that can be repurposed or kept as part of the gift experience.
Practical Steps for Gift and Home Brands and Buyers
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Collaborate with ethical suppliers and tell their stories clearly.
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Promote refill or return schemes in-store and at events.
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Use digital tools such as QR codes to share sustainability information quickly and transparently.
Turning ESG Into Opportunity
Retailers and exhibitors across both sectors are focusing on:
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Improving supply chain governance and reporting.
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Reducing environmental impact across operations and logistics.
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Designing products and packaging with reusability and recyclability in mind.
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Building confidence through measurable actions and clear communication.
Embedding ESG into retail operations creates stronger foundations for growth and trust. By developing transparent partnerships and responsible practices, businesses can meet rising expectations while opening new paths to innovation.
Be part of retail’s next chapter, join us at the January Furniture Show, 18–21 January 2026 at NEC Birmingham, or Top Drawer SS26, 11–13 January 2026 at Olympia London. Register now to connect with industry leaders, discover the latest trends, and get inspired for the year ahead.
This article is part of our special ESG in Retail series. If you’d like to see how leading retailers and brands are applying ESG principles to their sector, explore our sector-specific features: