New data has discovered that the adoption of sustainable business practices can boost a retailer’s financial results by up to 20%.
The findings, released by supplier collaboration specialist Supply Pilot in its latest white paper – From Intention to Action – follow the firm’s work with some of the world’s leading brands, including John Lewis, SC Johnson, Coop, Walmart, PetSmart, and Walgreen Boots Alliance.
The assessment marks the first time that sustainability operational performance has been so deeply measured in overall business performance for retailers and brands.
Data captured for the study shows that supplier collaboration is the most effective sustainable practice that businesses can undertake, when compared to practices such as product design, process design and customer collaboration. Supplier collaboration emphasises the need for brands and retailers to proactively engage with their suppliers, share data, establish mutual understandings of responsibility around sustainability requirements, and develop products that support brand sustainability goals.
The study’s findings do not support the prevailing view that there is a trade-off between environmental performance and financial performance. As such, Supply Pilot stated that there should be less hesitation and more commitment to sustainability adoption at a board level within retail.
The study’s results also reveal that ‘moral motivation’ is the biggest driver for companies looking to be more sustainable, with 87% of brands pointing to ‘environmental concern’ and 88% governed by ‘doing the right thing’.
James Butcher, CEO at Supply Pilot, said: “The study indicates that further improving sustainable performance can have a positive impact on financial performance. The best way to overcome the complexity of becoming more sustainable is through supplier collaboration.
“We’ve seen from our work alongside brands such as John Lewis and Partners, Co-Op and Walgreens Boots Alliance just how beneficial sustainable practices can be for businesses’ bottom lines, and the data from this research bears that out.”
