Businesses can benefit financially if they encourage their suppliers to adopt green and ethical practices, research from HSBC suggests.
Nearly a third of companies plan to take steps to make their suppliers and partners more sustainable over the next three years, according to the survey of more than 8,500 companies around the world.
For more than eight out of ten of these buyer firms, the chance to achieve cost efficiencies, improve revenues and boost profitability is the main motivation for doing so.
The most forward-thinking businesses are already taking action
Bryan Pascoe, Global Head of Client Coverage, HSBC Global Commercial Banking, said: “As businesses explore and invest in ways to stay competitive for the future, the most forward-thinking are already taking action. Becoming more sustainable is not only beneficial for the environment and for society, but for the bottom line too.”
In many industries, it is a company’s supply chain – the network of suppliers, partners and processes that help deliver an end product to market – that is responsible for the majority of its greenhouse gas emissions.
Sustainable supply chains
We are working to help our customers reduce the environmental impact of their supply chains and to foster the sustainable growth of small and medium-sized businesses.
Companies are also facing growing pressure from consumers to be open about where their products come from and how people, animals and the environment have been treated during production.
This means that the ‘green’ credentials of smaller suppliers and partners can be critical to a buyer firm’s reputation and performance. A quarter of businesses surveyed said that transparency is a key factor when they are looking for new suppliers.
The findings are taken from a new report called Navigator: Now, next and how for business. Commissioned by HSBC Commercial Banking, it examines business sentiment towards trade and growth in 34 countries and territories around the world, including China, the UK and the US.
Read the full report on the HSBC Commercial Banking website (opens in new window)