Retail and consumer brands in Greater Manchester operate in a highly visible and competitive environment. As the region continues to be a hotbed for fast growing consumer businesses, ESG considerations are increasingly shaping regulatory risk, investor confidence and brand trust.

Developments such as Extended Producer Responsibility (ERP), alongside increased enforcement activity by UK regulators mean that ESG is now a vital commercial consideration.

Question: How should retail and consumer brands based in Greater Manchester approach ESG in light of increasing scrutiny from regulators, customers and investors?

For retail and consumer brands, ESG considerations are now closely tied to brand reputation and commercial resilience. In Greater Manchester, where many consumer businesses are scaling rapidly and gaining national visibility, the way ESG is approached and communicated matters more than ever.

One of the most notable shifts over the past year has been the move from broad ESG ambition to evidence-based expectations. Regulators and stakeholders are increasingly focused on what businesses are actually doing, rather than what they aspire to do. This reflects a wider policy direction that prioritises transparency, accountability and consistency.

Environmental claims have been a particular area of focus. Bodies such as the Competition and Markets Authority (CMA) and the Advertising Standards Authority (ASA) have made clear that sustainability and green claims must be accurate, clear and capable of substantiation. For brands in Greater Manchester, this includes claims made on packaging, websites, social media and in marketing campaigns.

Vague or overstated claims around sustainability, materials or ethical sourcing can attract regulatory attention and reputational damage. The key principle for consumer brands is accuracy.

Businesses should be clear about what they are doing now, what remains a work in progress and where limitations exist. A legal review of consumer facing communications can help ensure that messaging reflects reality and aligns with regulatory expectations.

Extended Producer Responsibility (EPR) is another area of growing relevance for retail businesses. EPR places greater responsibility on producers for the environmental impact of products and packaging throughout their lifecycle.

For consumer brands, this has implications not only for compliance and cost, but also for how environmental commitments are communicated. Understanding how EPR obligations interact with sustainability messaging is increasingly important.

While environmental issues often dominate ESG discussions, social and governance factors remain central.

Supply chain oversight, labour practices and ethical standards are under increasing scrutiny particularly where brands position themselves as responsible or values led. Retail businesses with complex or overseas supply chains should ensure that governance structures support appropriate oversight and risk management.

Governance is also critical as consumer businesses grow.

Informal decision making can be effective in early stages, but as brands scale, clarity around roles, accountability and decision making becomes essential. This is particularly relevant where businesses are seeking investment, managing regulatory exposure or dealing with increased media attention.

Financial services regulation can also be relevant for consumer brands offering credit, payment options or financial promotions. The Financial Conduct Authority (FCA) continues to emphasise the importance of fair, clear and not misleading communications, which can overlap with ESG related claims and consumer messaging.

For many SMEs, the concern is that ESG frameworks feel designed for large corporates. In practice, the most effective approach is proportionate. Retail and consumer brands should focus on the ESG risks most relevant to their sector, customer base and growth plans.

ESG is no longer a marketing exercise. Treated as a core commercial and regulatory issue, it can help consumer brands protect trust, support sustainable growth and reduce the risk of disruption in an increasingly scrutinised marketplace.