Supply Chain Sustainability Priority, but Measurement is Lacking

Supply Chain Sustainability Priority, but Measurement is Lacking

Oct. 22, 2018
Barriers to implementing a sustainable strategy include the difficulty in proving the business case.

A new study by iPont Systems found that while 77% he fast-moving consumer goods (FMCG)/Consumer Packaged Goods (CPG) sector onsider supply chain sustainability a strategic priority with a clear plan and vision, 92% of firms are falling behind on their commitment.

The research looked at supply chain sustainability drivers and unsurprisingly found that cost saving is the number one goal amongst managers when creating a sustainable supply chain with 41% citing it.

This was well above 31% looking to reduce environmental impact.

 “We live in an era where data can deliver easily trackable progress and actionable insights for decisions and improvements in real time.” said. Oliver Mueller, CEO of iPoint BiS. “EHS and sustainability need solid reporting to make a measurable difference and to prove the business case. More than this, EHS and sustainability can rise above organizational boundaries by providing complete transparency into organizational and supply chain relationships through automation, turning sustainability into a business advantage and easily proving the business case.”

In the U.S., managers are much more concerned about protecting against reputational damage, with 40% more managers citing it as a sustainability goal in the U.S. compared to the UK.

Among the reasons given for barriers to implementing a sustainable strategy, 44% say it’s because of the time and effort required, and 43% say it’s difficult to prove the business case. Firms realize that sustainability is important but are finding it difficult or time-consuming to implement.

Despite increasing regulatory pressure and the acknowledgment that sustainability is a key priority, less than half of businesses have a formal measurement of the environmental impacts of their supply chain and track progress towards their sustainability goals.

 “More than ever before, organizations are facing increased demands for insight into their social and environmental performance,” said Joerg Walden, CEO of the iPoint Group. “CSR or Environmental Social and Governance (ESG) data is no longer just a compliance or financial issue, it has become a social issue where stakeholders, including the public, take an interest in an organization’s CSR or ESG reports. It’s clear from our research that enterprise understands this, but the evidence points to the fact that there is a long way to go before the benefits of sustainability are realized through proper measurement.”  

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