As in 2011 and 2012, by far the most important driver to invest in sustainability and environmental responsibility (SER) is to “create a positive customer image and enhance brand equity” – 8 out of 10 agree this is true at their companies, the highest share recorded so far. Respondents in the automotive, consumer products, food & beverage, apparel and telecommunications sectors are even more convinced about this. Almost half of respondents say this is a business driver now, compared with less than a third two years ago. In other words, companies are recognising that SER can drive real bottomline improvements, not just satisfy government regulations, bolster public relations or fend off the risk of supply disruptions (all of which fell by several percentage points year on year). In parallel, the sharp decline in those believing their boards invest in SER to increase sales revenue has been partially reversed. Nearly a quarter thinks this is now a driver, up from 17% in 2012. This finding is consistent with the rise in importance of customer image – after all, the value of enhancing brand equity is not only to hang on to existing customers but also to attract new ones.
As for the value created by SER the biggest single impact to date has been cost savings through the more
efficient use of energy, with slightly more than half of respondents agreeing that their companies have achieved results here. In contrast, the benefits gained by addressing health and safety and ethical issues are skewed heavily towards compliance and “soft value” in the form of, say, good PR, while product integrity and product innovation display a more balanced mix of benefits and are clear winners, as one would expect, when it comes to top-line value.
Source: Lee, H., O'Marah, K., Geraint, J., Blake, B. 2013. The Chief Supply Chain Officer Report 2013: Pulse of the Profession, SCM World, September 2013.