Sustainable practices deliver markedly better financial results for businesses, according to new brand and retailer research from supplier collaboration expert Supply Pilot.
The findings – which have been published and further explained in the company’s latest white paper titled ‘from intention to action’ – mark the first time that sustainability operational performance has been so deeply measured to assess business performance for retailers and brands.
Data captured by the supply chain data specialist shows that sustainability is responsible for approximately 20% of a business’ financial results, with supplier collaboration claimed to be 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.”
