A new report by banking giant HSBC states that the key to a smooth, prosperous supply chain of the future is sustainability.
While the general consensus is that digitalisation is the precursor to major global change, HSBC has focused on sustainability for five key reasons, listed below:
- BEING SUSTAINABLE IS SEEN AS VERY IMPORTANT GLOBALLY
HSBC studies show that 81% of companies say ethical and environmental sustainability is important to them and 83% want to be a genuinely ethical or environmentally sustainable company. Almost one in five (17%) companies globally plan to increase their emphasis on their ethical and environmental standards.
- BUSINESSES HAVE MORE CONTROL AND SIGHT OVER THEIR SUPPLY CHAINS
One in five companies globally (20%) say they’ve had greater control of their supply chain over the last two years. This presents a timely opportunity for businesses to assess their networks and take action to become more sustainable, which can help you remain competitive in an increasingly demanding trading environment.
- SUSTAINABILITY IS A BIG DRIVER OF SUPPLY CHAIN CHANGES
Almost a third (31%) of businesses globally will be looking to make changes to their supply chains related to sustainability. Improving sustainability outcomes is the highest objective (27%) for making supply chain changes after reducing cost (38%) and increasing profits/ revenue (36%).
- BUSINESSES RECOGNISE THE FINANCIAL REWARDS OF BEING MORE SUSTAINABLE
Cost savings and higher profits are a huge driver of sustainability supply chain changes. 84% of businesses are making ethically or environmentally sustainable changes to their supply chains to support cost efficiencies while 84% of companies are looking to make ethically or environmentally sustainable changes to improve revenues/ financial performance.
- PEER/ INDUSTRY RECOGNITION IS IMPORTANT
85% of businesses want to achieve a sustainability standard recognised by their sector or market and 84% say it’s important to be perceived as ethically or environmentally sustainable.