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Sustainability Analysis of NTUC FairPrice

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Contents
Part1 :Introduction...............................................................................................................2
Part 2:Implementation plan..................................................................................................4
Part3 :Sustainability in the industry.....................................................................................4
Part4:Sustainability of the Fair Price Group Enterprise......................................................6
Part5:Specific Sustainability aspects...................................................................................8
Part 6: Recommendations For The Fair Price Group Enterprise.........................................9
Part 6.1 :Reducing Single-Use Plastics...........................................................................9
Part 6.2: Enhancing Supply Chain Transparency and Ethical Sourcing.......................10
Part 7: Conclusion..............................................................................................................14
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Part1 :Introduction

NTUC FairPrice is Singapore's largest supermarket chain. The company cooperates with
Singapore's National Trade Union Congress (NTUC). As of 2022, the Group has more than 100
supermarkets across Singapore, including more than 160 Cheers convenience stores across the
island. In 1972, Singapore was suffering from the effects of the global oil crisis. People are
worried about global food shortages, and business people are raising prices for essential goods.
To combat inflation and stabilise food prices, NTUC began selling food and necessities
reasonably to the public, becoming a "people's supermarket"—a goal that continues today. In
November 1972, NTUC announced the establishment of a new consumer cooperative called
Welcome, which opened in February 1973. On July 22, 1973, FairPrice opened its first
supermarket in Toa Payoh Lorong (Ha & Loh, 2020).

Regarding sustainable development, FairPrice plays an essential role in social

responsibility and gives back to the community through various social projects and charity
activities. For example, the NTUC FairPrice Foundation is a registered charity established by
NTUC FairPrice. It launched in March 2008 with a $50 million commitment from NTUC
FairPrice over ten years and a mission to "provide a better life for communities." Their initiatives
may involve environmental protection, educational support, and social welfare. As a leader in the
retail industry, FairPrice strives to reduce its impact on the environment. The pandemic has
highlighted the urgency to improve food resilience, strengthen supply chains, review
environmental impacts, and reaffirm FairPrice Group's community support.

As Singapore's leading food retailer, FairPrice Group strives to inspire bold action to
create unique change for future generations. To this end, FairPrice Group is focusing on 2030
and has proposed three critical pillars under the "Healthier Lives, Healthier Planet" plan. One of
the most notable characteristics of NTUC FairPrice is its commitment to affordability and value.
As a social enterprise, the company strives to keep prices competitive while maintaining high-
quality standards, ensuring that essential goods remain accessible to all segments of society,
including low-income families and senior citizens. Through initiatives such as the FairPrice
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Housebrand range and regular promotions, FairPrice endeavours to alleviate the financial burden
on Singaporean households and enhance their overall well-being.

For example, the Group has invested in a new state-of-the-art Fresh Food Distribution
Centre (FFDC), which will use new technologies to help drive the Group's cold chain capabilities
and support Singapore's food security objectives. The facility is expected to be fully operational
in 2024.FairPrice As a retailer, FairPrice selectively provides products that meet sustainable
standards, such as organic food and environmentally friendly cleaning products, to meet
consumers' needs for sustainable lifestyles. FairPrice launched the "Create Greater Value Every
Day" initiative. Its cost-saving measures include freezing prices on 50 popular daily shows,
offering monthly essentials and offering 50% off select items. Additionally, FairPrice offers
special discounts on essential items such as eggs, rice and cooking oil. FairPrice is committed to
team member welfare, ensuring the employment of disadvantaged groups, and providing good
working conditions, training opportunities, and welfare plans to enhance team members'
happiness and satisfaction.

Part 2:Implementation plan

The sustainability Group utilised a comprehensive range of credible resources for the
sustainability report on Fair Price Group Company. The sources include Sustainability/CSR
reports and annual reports provided by Fair Price Group to understand their sustainability
initiatives and financial performance. Besides, interviews with the heads of different departments
provided the team with insights into, but not limited to, the Fair Price Group's green agenda,
sustainable practices, and problems facing the supply chain company. Access to Fair Price
Group's website opened a channel of knowledge on their sustainability programs, sustainable
supplier engagement, and community development sections. Moreover, Fair Price Group's
websites and customer feedback underpinned the research, which aimed to understand public
perceptions of the program sustainability efforts of the Fair Price Group.
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Industry publications and news articles were analysed to identify broader trends and best
practices in sustainability within the retail industry. Websites and social media platforms were
reviewed to gauge public perception and customer feedback. Additionally, physical visits to
NTUC FairPrice outlets allowed for firsthand observation of store operations, contributing to a
deeper understanding of the company's retail strategies. This report ensures a comprehensive
analysis of NTUC FairPrice and its impact on the Singaporean retail industry by utilising diverse
sources.

Part3 :Sustainability in the industry

The supermarket industry, including the esteemed NTUC FairPrice, confronts many
sustainability challenges across the triple-bottom-line framework and Sustainable Development
Goals (SDGs). Environmental sustainability ranks high among these concerns, notably due to the
industry's significant resource consumption, pervasive waste generation, and substantial
contribution to greenhouse gas emissions (Sullivan et al., 2018). Packaging materials, especially
single-use plastics, pose a particularly acute issue, exacerbating environmental degradation.
Additionally, the widespread food waste problem throughout the supply chain amplifies
resource inefficiency and adds pressure on landfills. In response, NTUC FairPrice has instituted
various initiatives to mitigate these challenges. The company actively promotes reusable bags
and incentivises customers to bring their containers for purchases. Furthermore, it implements
comprehensive food waste reduction strategies, including surplus food donation programmes, to
address these environmental concerns.

Social sustainability within the industry encompasses a broad spectrum of issues, ranging
from fair labour practices to community engagement. Concerns over worker rights, including fair
wages, safe working conditions, and opportunities for career advancement, are paramount.
NTUC FairPrice, as a cooperative entity, has ingrained a solid commitment to its workforce's
well-being. It ensures competitive wages and comprehensive benefits and offers training
programmes for skill development, nurturing a conducive work environment. Additionally, the
company actively engages in community outreach activities, supporting local charities and
partnering with social enterprises to address social needs and foster community resilience.

Economic sustainability challenges are evident in fair trade practices, supply chain
transparency, and economic inclusivity. The dominance of supermarket chains often leads to
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concerns regarding unfair trade practices, especially concerning smaller producers and suppliers.
NTUC FairPrice confronts this challenge by prioritising partnerships with local farmers and
small and medium-sized enterprises (SMEs), ensuring fair prices, and fostering long-term
sustainability for all stakeholders involved. Moreover, the cooperative structure of the company
promotes economic inclusivity by empowering members with shared ownership and equitable
distribution of profits, thus contributing to a more resilient economic ecosystem (NTUC
FairPrice, n.d.).

On an international scale, the sustainability issues faced by the supermarket industry

exhibit similarities and variations, contingent upon local contexts. In developed countries,
challenges such as food waste and packaging waste loom large due to prevalent consumer habits
and stringent regulatory frameworks. Conversely, concerns surrounding fair trade, support for
smallholder farmers, and access to affordable, nutritious food take precedence in developing
nations. Nevertheless, concerted global efforts are underway to address these sustainability
challenges, as exemplified by initiatives like the United Nations' Food Systems Summit, which
seeks to promote sustainability across the entire food value chain (United Nations, 2021).

Sustainability practices in the retailing industry, whether at a global level or in a locality,

can vary depending on the country and locality. In some developed countries, environmental
sustainability and ethical sourcing are essential features, while in the developing world, social
sustainability and economic development are more often given a higher priority (Krisnadewi &
Soewarno, 2019).

Part4:Sustainability of the Fair Price Group Enterprise.

NTUC FairPrice, as a prominent player in the supermarket industry, has implemented

various sustainability initiatives to address environmental, social, and economic concerns. While
the company has made commendable strides in certain areas, there are areas where
improvements could enhance its overall sustainability performance. One of the notable
sustainability initiatives of NTUC FairPrice is its focus on reducing environmental impact
through waste reduction and resource conservation. The company has introduced several
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measures to minimise packaging waste, such as promoting reusable bags and incentivising
customers to bring their containers for purchases.

Additionally, FairPrice has implemented food waste reduction strategies, including

surplus food donation programmes and initiatives to educate consumers about reducing food
waste at home. These initiatives align with Sustainable Development Goals (SDGs) related to
responsible consumption, production, and climate action. FairPrice's efforts demonstrate a
commitment to environmental stewardship and resource efficiency.

Regarding social sustainability, NTUC FairPrice has prioritised team member welfare
and community engagement. The company offers competitive wages, comprehensive benefits,
and training programmes for skill development, fostering a supportive work environment for its
employees. Moreover, FairPrice actively engages in community outreach activities, supporting
local charities and partnering with social enterprises to address social needs. These initiatives
contribute to SDGs related to decent work, economic growth, and sustainable communities.
FairPrice's dedication to social responsibility underscores its role as a responsible corporate
citizen and a contributor to community well-being.

Economically, NTUC FairPrice has implemented initiatives to promote economic

inclusivity and support local businesses. Through its cooperative structure, the company
empowers members with shared ownership and an equitable distribution of profits, fostering
economic resilience and inclusivity. FairPrice also prioritises partnerships with local farmers and
small and medium-sized enterprises (SMEs), ensuring fair prices and long-term sustainability for
all stakeholders. These initiatives align with SDGs related to sustainable economic growth and
partnerships for the goals. FairPrice's efforts in this area contribute to developing a more
equitable and sustainable economy.

While NTUC FairPrice has demonstrated a commitment to sustainability, improvements

could enhance its overall impact. One area for improvement is the reduction of single-use
plastics (Karimi et al., 2022). While FairPrice promotes reusable bags and encourages customers
to bring their containers, many products still rely significantly on plastic packaging.
Implementing initiatives to reduce plastic packaging and increase the use of sustainable
alternatives could further enhance the company's environmental sustainability efforts.
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Another area for improvement is in supply chain transparency and ethical sourcing.
While FairPrice prioritises partnerships with local farmers and SMEs, ensuring fair prices and
supporting local businesses, there may be opportunities to enhance transparency throughout the
supply chain. Implementing measures to trace the origin of products and ensure ethical sourcing
practices could strengthen FairPrice's commitment to social responsibility and sustainability.

Additionally, FairPrice supermarkets could enhance their sustainability initiatives by

setting clear targets and benchmarks to measure progress over time. While the company has
implemented various initiatives to reduce environmental impact, promote social responsibility,
and support economic inclusivity, setting specific goals and targets could help drive continuous
improvement and ensure accountability.

The company's focus on waste reduction, team member welfare, community engagement,
and supporting local businesses demonstrates a commitment to sustainability and responsible
business practices. However, there are areas where improvements could enhance FairPrice's
overall sustainability performance, including reducing single-use plastics, enhancing supply
chain transparency, and setting clear targets for progress.

Fair Price Group has achieved notable advances in its sustainability initiatives, most
notably the plastic reduction strategies, environmental awareness education, and promotion of
the local community. However, there are aspects that the enterprise should address, including
waste management and supply chain transparency (Sullivan et al., 2018). The Group should
allocate its finances to renewable energy development and clean waste and promote a transparent
supply chain to improve sustainability. Through this, Fair Price Group can continue improving
sustainability across businesses and lead the industry in setting the standard and mitigating the
harmful impacts of climate change.

Part5:Specific Sustainability aspects.

Focusing on two specific sustainability aspects, waste reduction and ethical sourcing, is
more critical. These aspects are selected because they are crucial for NTUC FairPrice and the
supermarket industry as a whole. Waste reduction is vital for NTUC FairPrice due to the
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supermarket industry's significant environmental impact from packaging and food waste.
Addressing this aspect aligns with SDG 12 (Responsible Consumption and Production),
emphasising sustainable practices to minimise waste generation and promote resource efficiency.
Given FairPrice's commitment to environmental stewardship and resource efficiency, waste
reduction is a crucial area for improvement.

Ethical sourcing is another critical aspect of NTUC FairPrice, considering the importance
of fair trade practices and supply chain transparency in the supermarket industry. This aspect
aligns with SDG 8 (Decent Work and Economic Growth) and SDG 12 (Responsible
Consumption and Production), emphasising the importance of fair wages, safe working
conditions, and ethical business practices throughout the supply chain. Improving ethical
sourcing practices is essential for FairPrice to uphold its commitment to social responsibility and
ensure transparency and fairness in its operations (Sullivan et al.,2018).

These aspects represent areas of significant importance and potential improvement for
NTUC FairPrice, reflecting the company's commitment to sustainability and responsible business
practices.

Part 6: Recommendations For The Fair Price Group Enterprise

NTUC FairPrice can implement the following recommendations to improve sustainability

in reducing single-use plastics, enhancing supply chain transparency, and ethical sourcing.

Part 6.1 :Reducing Single-Use Plastics

FairPrice supermarket chains can expand their range of eco-friendly alternatives to

single-use plastics, such as biodegradable packaging or reusable containers. Offering incentives
such as discounts for customers who bring their reusable bags or containers can encourage
behaviour change and reduce reliance on plastic packaging (F Chin,2015). At the same time, the
supermarket can redesign its products in partnership with other stakeholders. Collaborating with
suppliers to redesign packaging to be more sustainable can significantly reduce plastic usage.
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Packaging materials from recycled or biodegradable materials can minimise environmental

impact while ensuring product safety and quality.

NTUC FairPrice can set clear targets to reduce the use of single-use plastics across its
operations. These targets should be specific, measurable, achievable, relevant, and time-bound
(SMART). For example, the company could aim to reduce plastic packaging by a certain
percentage within a specified timeframe. The enterprise can achieve its goal of minimising
plastic usage through education and campaigns. Implementing in-store and online educational
campaigns can raise awareness among customers about the environmental impact of single-use
plastics and the importance of reducing their usage (Sullivan et al.,2018). Providing information
about alternative packaging options and the benefits of plastic reduction can empower consumers
to make more sustainable choices.

Part 6.2: Enhancing Supply Chain Transparency and Ethical Sourcing

To enhance supply chain transparency and ethical sourcing, NTUC FairPrice can adopt
measures to trace the origin of products and ensure compliance with ethical standards throughout
the supply chain. Implementing blockchain technology, for example, can enable real-time
tracking of products from farm to shelf, providing greater transparency and accountability
((Krisnadewi & Soewarno,2019). Walmart has successfully piloted blockchain technology for
tracking food products, demonstrating its potential to improve supply chain transparency and
traceability.

Furthermore, FairPrice supermarkets can strengthen its supplier relationships by

conducting regular audits and assessments to ensure compliance with ethical sourcing practices.
These include verifying suppliers' adherence to labour standards, environmental regulations, and
fair trade principles. FairTrade International provides certification programs that ensure fair
prices and decent working conditions for producers in developing countries, serving as a model
for ethical sourcing initiatives (F Chin,2015). Additionally, FairPrice can engage with industry
stakeholders, including suppliers, NGOs, and government agencies, to develop industry-wide
standards and best practices for ethical sourcing. Collaborative initiatives like the Sustainable
Apparel Coalition in the fashion industry have effectively driven positive change by bringing
together diverse stakeholders to address common sustainability challenges.
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FairPrice supermarkets can invest in capacity-building initiatives to support suppliers,

especially smallholder farmers and SMEs, in adopting sustainable farming practices, improving
productivity, and enhancing social and environmental performance. Training, technical
assistance, and financial support can empower suppliers to meet FairPrice's sustainability
requirements.

By implementing these recommendations, NTUC FairPrice can strengthen its

sustainability performance by reducing single-use plastics and enhancing supply chain
transparency and ethical sourcing. These initiatives align with the company's commitment to
sustainability and contribute to creating a more resilient and responsible supply chain ecosystem.

List And Assessment Of Indicators For Monitoring.

Sustainabili Descripti Measureme Limitations/

ty Indicator on nt & Reporting Challenges
Percentage This Measureme Accurately measuring
Reduction in indicator nt involves tracking the quantity of single-use
Single-Use Plastics measures the the quantity of plastics used may be
percentage single-use plastics challenging, especially in
decrease in the used annually and decentralised or fragmented
use of single-use comparing it to the data collection cases.
plastics across baseline year.
NTUC FairPrice's Reporting can be
operations. done through
annual
sustainability
reports or online
dashboards.
Adoption of This Measureme Limitations include
Sustainable indicator assesses nt involves tracking the availability and cost of
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Packaging the adoption of the percentage of sustainable packaging

sustainable products packaged alternatives and potential
packaging in sustainable challenges in transitioning
alternatives by alternatives, such as existing product lines to new
NTUC FairPrice. biodegradable or packaging formats.
compostable
materials.
Reporting can be
done through
supplier surveys,
packaging audits,
and annual
sustainability
reports.
Customer This Measureme Challenges may
Engagement in indicator nt can be conducted include low participation
Plastic Reduction measures the through customer rates, difficulty tracking
Initiatives level of customer surveys, loyalty individual customer
engagement in program data, or behaviours, and ensuring an
NTUC FairPrice's participation rates accurate representation of
plastic reduction in plastic reduction customer sentiment through
initiatives, such campaigns. surveys.
as reusable bag Reporting can be
incentives or done through
plastic-free quarterly or annual
campaigns. updates on
customer
engagement
metrics.
Supplier This Measureme Challenges include
Compliance with indicator nt involves obtaining accurate and
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Ethical Sourcing evaluates the conducting supplier timely data from suppliers,
Standards level of supplier assessments, audits, verifying compliance with
compliance with and evaluations to multiple standards and
NTUC FairPrice's assess compliance certifications, and effectively
ethical sourcing with ethical addressing non-compliance
standards, sourcing criteria. issues.
including labour Reporting can be
practices, done through
environmental supplier scorecards,
sustainability, compliance reports,
and social and annual
responsibility. sustainability
disclosures.
Percentage This Measureme Limitations include
of Products Sourced indicator tracks nt involves the availability of certified
from Certified the percentage of analysing products in the market,
Suppliers products sourced procurement data to potential challenges in
from suppliers determine the verifying certification
certified by proportion of authenticity, and the need for
recognised products sourced continuous monitoring to
sustainability from certified ensure ongoing compliance.
certification suppliers. Reporting
programs, such as can be done through
Fair Trade, sustainability
Rainforest reports,
Alliance, or procurement
Organic dashboards, and
certification. supplier
performance
reviews.
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These sustainability indicators are essential for monitoring NTUC FairPrice's progress in
reducing single-use plastics and enhancing supply chain transparency and ethical sourcing. By
tracking these indicators over time, the company can assess its sustainability performance,
identify areas for improvement, and demonstrate accountability to stakeholders.

However, managing these indicators comes with its own set of challenges and limitations.
For instance, measuring the quantity of single-use plastics used may be challenging due to
decentralised data collection processes and variations in reporting practices across different
business units (Naidoo & Gasparatos, 2018). Similarly, ensuring supplier compliance with
ethical sourcing standards requires robust monitoring and verification mechanisms, which may
be resource-intensive and time-consuming.

Moreover, the availability and cost of sustainable packaging alternatives, customer

engagement in plastic reduction initiatives, and the authenticity of sustainability certifications
pose additional challenges for NTUC FairPrice. Overcoming these challenges will require
collaboration with stakeholders, investment in data management systems, and continuous
improvement in sustainability practices.

References to established sustainability reporting frameworks, such as the Global

Reporting Initiative (GRI) Standards, the Sustainability Accounting Standards Board (SASB), or
the United Nations Sustainable Development Goals (SDGs), can guide the selection of relevant
indicators and ensure alignment with industry best practices. By adopting a holistic approach to
sustainability measurement and reporting, NTUC FairPrice can effectively track its progress
towards achieving its sustainability goals and driving positive change in the industry.

Part 7: Conclusion
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In conclusion, this report has comprehensively analysed NTUC FairPrice's sustainability

initiatives, focusing on reducing single-use plastics and enhancing supply chain transparency and
ethical sourcing. By examining key sustainability aspects, recommending improvement
strategies, and proposing relevant indicators for monitoring progress, this report highlights
NTUC FairPrice's commitment to sustainability and responsible business practices (Karimi et al.,
2022). Despite facing challenges such as measuring single-use plastic usage and ensuring
supplier compliance, NTUC FairPrice has demonstrated a proactive approach to addressing
sustainability concerns and driving positive change in the industry.

Writing this report allowed for a deeper understanding of the complexities of

implementing sustainability initiatives within the supermarket industry. Researching and
analysing information from various sources, including academic literature, industry reports, and
company data, provided valuable insights into NTUC FairPrice's sustainability efforts. While the
process went smoothly overall, adjustments had to be made to ensure the accuracy and relevance
of the information presented. Given more time and resources, further in-depth analysis of NTUC
FairPrice's supply chain practices and stakeholder engagement strategies could have been
conducted to enhance the depth and breadth of the report (Sullivan et al.,2018). Additionally,
interviews with company representatives or stakeholders could have provided firsthand
perspectives on sustainability initiatives and challenges. This report is a foundation for ongoing
discussions and actions to advance sustainability within NTUC FairPrice and the wider
supermarket industry.

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