Some 82% of supply chain professionals believe that companies that embrace sustainability achieve a better financial performance over time, a new study by DP World, in collaboration with Supply Chain Dive’s studioID, has found.
The study, Sustainability Drives Financial Benefit Across Supply Chains, surveyed 150 supply chain, operations, and procurement professionals from various industries across North America.
It revealed a ‘significant shift’ among industry professionals in terms of how businesses view and implement sustainability, particularly in terms of driving financial performance.
‘Foundational element’
“As we observe the transformative shift in supply chain practices, it’s evident that sustainability is not just a trend but a foundational element for modern business strategies,” commented Morten Johansen, chief operating officer of DP World Americas.
“This report highlights how integrating sustainability measures can serve as a catalyst for substantial improvements in both economic efficiency and strategic innovation. Companies are now recognising that sustainable practices enhance operational resilience and are essential for long-term profitability.”
As the study found, more than a third (36%) of respondents are motivated by the financial and efficiency gains associated with sustainability, while 30% highlight improved supply chain resilience. Close to a third (32%) see sustainability as a critical competitive advantage.
Elsewhere, three quarters (74%) of respondents report a stronger focus on decarbonisation and sustainable practices compared to three years ago. Over the next three years, eight in ten to allocate more resources, including financial investment and increased headcount, to sustainability initiatives.
‘Value beyond compliance’
“Investment in supply chain sustainability is proving its value beyond compliance and stakeholder reputation,” added Sarah Mouriño, senior director, sustainability, at DP World Americas. “Moving forward, supply chain decision-making – for everything from partner selection to budget allocation and network design – will consider both the economic and environmental benefits of sustainability.”
Other findings from the study include that firms are reconfiguring supply chains and investing in collaboration to achieve decarbonisation goals; that many are building capabilities to better measure and report emissions; and that 44% of businesses state that a supplier’s decarbonisation and sustainability capabilities are a ‘key factor’ in future partnerships. Read more here.
