Over the next three years, a third of global businesses will prioritize sustainability in their supply chains, driven by financial benefits and growing pressure from customers and regulators.
Emerging markets lead:
A new survey by HSBC reveals that nearly one-third of businesses worldwide are planning to integrate sustainable practices into their supply chains over the next three years.
The research, which polled 8,500 companies in 34 markets, highlights that financial benefits are the primary incentive for this shift. A remarkable 84% of firms cited both cost efficiencies and improved revenues as key motivators for making these changes. This marks a significant evolution from viewing sustainability as a mere cost to seeing it as a critical component of a healthy bottom line.
Transparency and regulation drive change:
According to HSBC’s findings, supply chains account for approximately 80% of a company’s “green credentials,” making partners a crucial factor in a firm’s reputation and performance.
The survey also found that transparency is a top consideration for more than a quarter of companies when choosing new suppliers. This emphasis on visibility is a direct response to increasing demands from consumers who want to know the origin and ethical impact of their purchases.
Furthermore, mounting pressure from regulators and investors for greater disclosure on sustainability practices is pushing 85% of businesses to seek sector-recognized standards.
Developing economies embracing sustainability:
The research also uncovered a noteworthy trend: businesses in emerging markets are more eager to enhance their ethical and environmental standards.
Over 21% of companies in these regions plan to make sustainability improvements over the next two years, compared to 15% in developed economies. HSBC noted that this presents a “timely opportunity” for businesses to evaluate their networks and implement sustainable actions to remain competitive in an increasingly demanding global trading environment.
