Sustainable supply chains planned for third of global businesses

5th December 2018


Web sustainable business istock 891501874

Related Topics

Related tags

  • Business & Industry ,
  • Supply chain ,
  • Sustainability

Author

IEMA

Almost one-third of businesses worldwide plan to make sustainability-related changes to their supply chains over the next three years, research from HSBC has found.

After surveying 8,500 companies in 34 markets, the banking giant found that new financial benefits are the main motivators behind these plans.

Of those making ethical or environmentally sustainable changes, 84% said cost efficiencies were one the main reasons for doing so, while the same number cited improved revenues and financial performance.

HSBC said, that with around 80% of ‘green credentials’ found in supply chains, business partners could play a critical role in a firm’s reputation and performance.

‘Transitioning to become more sustainable is not only beneficial for the environment and society, but for the bottom line too,” HSBC global head of client coverage, Bryan Pascoe, said.

“As businesses explore and invest in ways to stay competitive for the future, the most forward-thinking are already taking action.”

The survey found that transparency is a key consideration for more than a quarter of companies when seeking new suppliers.

This comes at a time when customers increasingly want to know where the products they buy come from, and how people, animals and the environment have been treated.

In addition, regulators and investors are putting more pressure on companies to disclose their sustainability practices, perhaps explaining why 85% of firms want to achieve a standard recognised by their sector.

One in five companies claim to have taken greater control of their supply chains over the last two years, while 17% say they reduced their impact on the environment over the same period.

Firms in emerging markets are particularly keen to increase their ethical and environmental standards, with more that 21% planning to make improvements over the next two years, compared with 15% in developed economies.

“This presents a timely opportunity for businesses to assess their networks and take action to become more sustainable, which can help them remain competitive in an increasingly demanding trading environment, “ HSBC said.

“The transition to a more sustainable future has many benefits to businesses, and banks have a role to play too.”

Image credit: iStock

Subscribe

Subscribe to IEMA's newsletters to receive timely articles, expert opinions, event announcements, and much more, directly in your inbox.


Transform articles

How much is too much?

While there is no silver bullet for tackling climate change and social injustice, there is one controversial solution: the abolition of the super-rich. Chris Seekings explains more

4th April 2024

Read more

One of the world’s most influential management thinkers, Andrew Winston sees many reasons for hope as pessimism looms large in sustainability. Huw Morris reports

4th April 2024

Read more

Vanessa Champion reveals how biophilic design can help you meet your environmental, social and governance goals

4th April 2024

Read more

Alex Veitch from the British Chambers of Commerce and IEMA’s Ben Goodwin discuss with Chris Seekings how to unlock the potential of UK businesses

4th April 2024

Read more

Regulatory gaps between the EU and UK are beginning to appear, warns Neil Howe in this edition’s environmental legislation round-up

4th April 2024

Read more

A project promoter’s perspective on the environmental challenges facing new subsea power cables

3rd April 2024

Read more

Senior consultant, EcoAct

3rd April 2024

Read more

Five of the latest books on the environment and sustainability

3rd April 2024

Read more

Media enquires

Looking for an expert to speak at an event or comment on an item in the news?

Find an expert

IEMA Cookie Notice

Clicking the ‘Accept all’ button means you are accepting analytics and third-party cookies. Our website uses necessary cookies which are required in order to make our website work. In addition to these, we use analytics and third-party cookies to optimise site functionality and give you the best possible experience. To control which cookies are set, click ‘Settings’. To learn more about cookies, how we use them on our website and how to change your cookie settings please view our cookie policy.

Manage cookie settings

Our use of cookies

You can learn more detailed information in our cookie policy.

Some cookies are essential, but non-essential cookies help us to improve the experience on our site by providing insights into how the site is being used. To maintain privacy management, this relies on cookie identifiers. Resetting or deleting your browser cookies will reset these preferences.

Essential cookies

These are cookies that are required for the operation of our website. They include, for example, cookies that enable you to log into secure areas of our website.

Analytics cookies

These cookies allow us to recognise and count the number of visitors to our website and to see how visitors move around our website when they are using it. This helps us to improve the way our website works.

Advertising cookies

These cookies allow us to tailor advertising to you based on your interests. If you do not accept these cookies, you will still see adverts, but these will be more generic.

Save and close