The Growing Business Criticality of a Sustainable Supply Chain

August 13, 2020 EcoVadis EN


Private sector leaders are starting to advocate for the transition to a stakeholder-based business model, recognizing sustainability and organizational performance aren’t mutually exclusive. And investors are realizing EBITA, EPS and CFFO aren’t the only measures of success, with ESG metrics being just as important when evaluating companies:

- 88% of studies found companies adhering to social or environmental standards showed better operational performance, with 80% showing a positive impact on stock performance.

 

- Sustainably minded shoppers will spend $150 billion on sustainable products by next year. That’s $14-22 billion more compared to prior years, pointing to new sales opportunities for businesses that prioritize sustainability in product development.

 

- Sustainable supply chain practices reduce costs by 9-16% and create a 15-30% increase in brand value. 73% of CEOS report sustainable business builds trust and reputation.

 

- Ignoring ESG exposes investments to huge risks and erodes returns. This behavior has wiped out $534bn of valuation in the last five years.



Read the full article at: futureofsourcing.com

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About the Author

EcoVadis EN

EcoVadis is a purpose-driven company whose mission is to provide the world's most trusted business sustainability ratings. Businesses of all sizes rely on EcoVadis’ expert intelligence and evidence-based ratings to manage risk and compliance, drive decarbonization, and improve the sustainability performance of their business and value chain. Its AI-powered risk mapping, actionable scorecards, benchmarks, carbon action tools, and insights guide a resilience and improvement journey for environmental, social and ethical practices across 200 industry categories and 175 countries.

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