The Growing Business Criticality of a Sustainable Supply Chain

August 13, 2020 EcoVadis ‏‏‎


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

About the Author

EcoVadis ‏‏‎

EcoVadis is the world’s most trusted provider of business sustainability ratings, intelligence and collaborative performance improvement tools for global supply chains. Backed by a powerful technology platform and a global team of domain experts, EcoVadis’ easy-to-use and actionable sustainability scorecards provide detailed insight into environmental, social and ethical risks across 200+ purchasing categories and 175+ countries.

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