Sustainability remains a key business objective for many small and midsized businesses, but the interest in developing sustainable logistics and supply chain solutions is not translating into investment.
“Sustainability is now at the forefront of many businesses’ agendas,” said Michiel Greeven, executive vice president global commercial at DHL Express. “But the challenge of developing and implementing a sustainability strategy can often seem overwhelming—with many survey respondents highlighting not knowing where to start on the journey.”
DHL Express last month released the results of a global survey of over 5,000 SME decision-makers across 11 markets: the UK, France, Germany, the Netherlands, Australia, China, Singapore, Japan, Mexico, Canada and India. The businesses represented nine sectors: retail, consumer goods, professional services, engineering, fashion, technology, chemicals, life science & healthcare, and financial service. The full survey is available in an ebook.
According to the results, while two-thirds of respondents said sustainability is “very important” or extremely important,” only 53% said they would be willing to dedicate between 1% and 3% of their operating budget to sustainable initiatives. Just 9% said they would dedicate more than 5%, while 16% said they would not invest at all in sustainable initiatives.
Customers not as interested
A 2023 Sifted survey found that 69% of consumers reported that sustainable shipping had influenced past purchases, and 86.4% said sustainability was at least “somewhat important” when buying online. Also, a Boston Consulting Group survey in 2022 showed 82% of customers were willing to pay a premium for zero-carbon shipping.
But, perhaps in a sign of the state of the global consumer sentiment, the DHL Express survey found just 23% of SMEs believe their customers are willing to pay more for sustainable shipping. India (51%) and China (47%) had the highest responses.
The SME respondents cited difficulty in securing internal and customer buy-in for sustainability initiatives, with 74% of respondents in Germany citing these reasons.
According to DHL Express, the fashion industry, which has come under increased scrutiny over its sustainability practices and ethical supply chain concerns, is the industry most interested in increasing its sustainability. Most fashion SMEs (81%) said it is “very important” or extremely important” and 78% believe offering sustainable delivery options could improve their brand image.
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