A HSBC survey found that businesses that are making sustainable changes in their supply chains will improve their bottom line over the next three years.
The survey, Navigator: Now, Next and How for Business, found that almost a third of companies plan to make sustainability-related changes to their supply chains. Meanwhile, those making ethical or environmentally sustainable chains stated that cost efficiencies, improved revenues and financial performance are the main motivations. Recently, companies have been faced with pressure to become more sustainable and transparent about their sourcing, according to Supply Chain Management Review. At least 80 percent of a company's environmental impact is found in its supply chain.
Transparency is becoming increasingly important to companies when it comes to seeking new suppliers as consumers want to know more than ever where their products are coming from. Additionally, regulators and investors and also asking companies to disclose their sustainability practices as well. The survey found that 21 percent of businesses based in emerging markets plan on improving their supply chains over the next two years compared to the 15 percent in already developed markets.
Twenty percent of respondents say that taking greater control over their supply chain over the last two years has granted them opportunities to assess their networks and take actions to become more sustainable as well, helping them remain competitive, Supply Chain Management Review reports.
The survey found that small and medium sized companies are also interested in improving sustainability within their supply chains, proving that being eco-friendly isn't just a trend for large players.