SUSTAINABILITY FEATURE
Sustained success through SRM
Our ability to sustain our businesses through the coming decades will depend on whether we can ensure the health of the planet and a sense of economic and social balance. We’re not just saying this because it is the right thing to do, although it is. We’re saying it because this is what will drive business success. All supply chains end with consumers, and through social media and the democratisation of information, they are driving change across the business world. As start-ups and internet-native companies enter all markets, consumers have more choice than ever before and can instantly compare firms on price, quality, environmental impact, product provenance and social responsibility. In response, businesses need to consider sustainability in its broadest meaning. Research commissioned by global FMCG giant Unilever showed one-third of consumers now choose to buy brands based on their social and environmental impact 1 . The study finds this equates to a €966 billion (£859 billion) untapped
opportunity and says the size of the market for sustainable goods is €2.5 trillion (£2.2 trillion). Never has there been more interest in where products come from, what they contain, how they affect the environment and the conditions of the people who make them. The same goes for services. Any slip-ups or shocking news can go viral in an instant, devastating brand reputation and share price. People increasingly choose to buy from and work with, brands which represent them, reflecting their lifestyle, values and ethos. Sustainability is not a nice to have: it’s a competitive advantage. And organisations cannot create that advantage without understanding and managing their suppliers. That’s where most of their carbon emissions will come from; it is where most of their environmental impact will be; and it’s the place they’re most likely to find poor working conditions and ethical malpractice. It’s also where they will find the innovation to impress and delight their customers. SRM offers organisations the tools to sustain success in a changing world.
1 Report shows a third of consumers prefer sustainable brands https: //www.unilever.com/news/press-releases/2017/report-shows-a-third-of-consumers-prefer-sustainable-brands.html
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STATE OF FLUX
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