Reporting Branded Merchandise in Your ESG Report

A UK Perspective

When it comes to Environmental, Social and Governance (ESG) reporting, many UK businesses focus on energy consumption, supply chains, or employee initiatives. But one area often overlooked is branded merchandise—the clothing, gifts, and promotional items that carry your company’s logo.

In today’s landscape, every purchase decision speaks volumes about a brand’s values. Merchandise is no exception. By including it in your ESG reporting, you can both demonstrate transparency and showcase progress toward sustainability goals.

Why Merchandise Belongs in ESG Reporting

Scope 3 Emissions

Merchandise falls under Scope 3 (indirect) emissions, which cover purchased goods and services. Reporting here shows that you’re addressing the full footprint of your brand.

Sustainable Procurement

Clients, employees, and stakeholders increasingly expect that branded items are responsibly sourced. Reporting the use of organic fabrics, recycled materials, or FSC-certified packaging demonstrates alignment with sustainable procurement practices.

Social Responsibility

Ethical supply chains are as important as eco-friendly ones. Companies are under scrutiny to show that suppliers meet fair labour standards and global compliance frameworks. Merchandise sourcing offers a tangible way to highlight these commitments.

Governance & Transparency

Documenting merchandise procurement in ESG reports helps evidence strong governance—showing that sustainability isn’t siloed, but embedded across all business functions.

Practical Steps to Report Merchandise in Your ESG Framework

Audit Your Merchandise Spend

Track what items you buy, from whom, and in what quantities. This data provides a baseline for carbon and waste calculations.

Highlight Material Choices

Were items made from recycled plastic, organic cotton, or bamboo? Reporting material breakdowns demonstrates measurable action.

Showcase Reduction Efforts

Report on initiatives such as replacing single-use giveaways with reusable items, or cutting volumes in favour of higher-quality, longer-lasting products.

Measure Carbon Offsetting

If you partner with suppliers that offer carbon-neutral merchandise or offset schemes, include these metrics to illustrate positive impact.

Tell the Story

ESG reports aren’t just data—they’re narratives. Use your merchandise choices to illustrate how brand decisions align with company values and CSR commitments.

The UK Regulatory Context

While ESG reporting in the UK is not yet mandatory for all businesses, frameworks such as TCFD (Task Force on Climate-related Financial Disclosures), SECR (Streamlined Energy and Carbon Reporting), and the upcoming Sustainability Disclosure Requirements (SDRs) push organisations towards more detailed disclosures. Including branded merchandise shows that your business is ahead of the curve and thinking holistically about its footprint.

Turning Branded Merchandise into a Positive ESG Story

Instead of being seen as a contributor to waste or carbon output, merchandise can become a proof point of innovation and responsibility. By sourcing products that are:

• Sustainable (made from recycled or organic materials),

• Useful (encouraging long-term use rather than disposability),

• Ethical (produced with fair labour practices),

…you can report not only risks and impacts but also value creation through brand visibility that aligns with your ESG strategy.

Final Thought

Your branded merchandise is more than a marketing tool—it’s part of your corporate responsibility story. Including it in your ESG report demonstrates that your organisation is serious about embedding sustainability and accountability into every aspect of its operations.

If you would like to talk to us about sustainable branded merchandise and our solutions, get in touch. We’d be happy to show you how we could help.

Get in touch with the team