The importance of balancing profit and purpose

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In the ever-evolving landscape of the confectionery industry, the challenge of balancing profit with purpose has become increasingly crucial for brands looking to win over consumers in 2025. According to Josh Simpson, co-founder of Impact Score, an app designed to help users measure the sustainability profiles of their food and beverage purchases, this balance is key to meeting the evolving expectations of an increasingly conscious audience.

With 80,000 users, Impact Score has partnered with Harper Adams University to develop a methodology for assessing environmental, social, and governance (ESG) measures at both brand and product levels. By considering indicators such as animal welfare, nutritional value, packaging, carbon footprint, and fairtrade certification, Impact Score aims to prevent greenwashing and provide consumers with transparent information about the sustainability of the products they purchase.

The recently released Sustainability Index 2025 by Impact Score evaluated over 6,200 products from nearly 700 brands in the confectionery category, revealing mixed results. While some larger CPGs like Lindt and Kinder showed improvement in their sustainability performance, smaller firms like Tony’s Chocolonely and Nomo saw their scores decline. This indicates that simply adopting sustainability practices is no longer sufficient, as consumers are increasingly swayed by a product’s Impact Score when making purchasing decisions.

In response to this shift, Ian Yates, co-founder of Impact Score, notes that challenger brands in the confectionery industry must continue to innovate and raise the bar on sustainability to maintain their competitive position. Key areas of focus for these brands include enhancing supply chain transparency, adopting carbon-neutral production practices, implementing waste reduction efforts, and sourcing ingredients ethically. By addressing these sustainability challenges head-on, challenger brands can differentiate themselves in a crowded market and appeal to consumers seeking environmentally conscious options.

The Sustainability Index 2025 also highlights specific brands that have seen changes in their sustainability ratings year-on-year. Brands like Lindt, Barratt, and Mentos showed significant increases in their ratings, while others like Nomo and Thorntons experienced declines. This data underscores the importance of ongoing sustainability efforts and the need for brands to continually assess and improve their environmental practices.

In addition to the efforts of Impact Score, the confectionery industry is facing increased scrutiny from various sources, including academic research, grassroots organizations, and regulatory bodies. A study published in the Journal Science identified 56 companies responsible for over half of the world’s plastic pollution, highlighting the urgent need for industry-wide action to address environmental challenges.

Regulation is also playing a significant role in driving sustainability initiatives within the confectionery sector. The Global Plastics Treaty, a legally binding agreement supported by 175 countries to reduce plastic pollution, is set to reshape the industry’s approach to packaging and waste management. As this treaty moves towards implementation, brands will need to adapt their practices to align with global sustainability goals and consumer expectations.

In conclusion, the confectionery industry in 2025 is at a crossroads, with brands facing increasing pressure to prioritize sustainability alongside profitability. By embracing conscious and comprehensive sustainability practices, confectionery companies can not only meet the demands of an environmentally aware consumer base but also position themselves as leaders in a rapidly changing market. Balancing profit with purpose is no longer just a goal but a necessity for success in the confectionery industry of the future.