DP World: Sustainability Improves Financial Performance
A new report by DP World, in collaboration with Supply Chain Dive’s studioID, reveals 82% of respondents say that embracing sustainability has improved their organisation's financial performance.
The Sustainability Drives Financial Benefit Across Supply Chains Report is based on a survey of 150 supply chain and procurement professionals across various industries within North America. It reveals a significant shift in how businesses view and implement sustainability in their processes.
DP World, a leading global logistics company with more than 111,000 employees spanning 77 countries and six continents, aims to push trade further and faster towards a seamless sustainable supply chain that’s fit for the future.
In its report, it outlines that companies are increasingly recognising the economic opportunities in sustainability investments, which are influencing everything from their spending decisions to partner selections and approaches to carbon accounting.
DP World's survey respondents represented a diverse range of sectors, including industrial manufacturing (39%), healthcare (20%), consumer products manufacturing (9%) and technology (9%).
The largest segment of respondents came from organisations with annual revenues between US$101m and US$500m (19%), followed by US$51m to US$100m (16%) and US$1.1bn to US$10bn (15%).
- More than a third (36%) of respondents say they are motivated by the efficiency or financial gains from sustainability initiatives, while 30% cite the resilience benefits. 32% believe supply chain sustainability measures offer a competitive advantage.
- Almost three-quarters (74%) report a heightened priority on supply chain sustainability and decarbonisation compared to three years ago. Additionally, 80% expect to increase their allocation of resources towards sustainability goals in the next three years.
- Respondents are integrating or planning to integrate Scope 3 requirements; including strategies to reconfigure supply chains, such as nearshoring or reshoring manufacturing operations and collaborating within their industries on decarbonisation measures.
- Organisations are increasingly establishing measurement and reporting capabilities around emissions. Improving collaboration between accounting and supply chain is the top reported strategy, at 35%. Other common steps include investing in the right tools and systems to support carbon accounting and setting emission reduction targets.
- 44% of respondents report that a company's decarbonisation and sustainability capabilities are very or extremely influential on their organisations' supplier selection process.
“As we observe the transformative shift in supply chain practices, it's evident that sustainability is not just a trend but a foundational element for modern business strategies," says Morten Johansen, Chief Operating Officer of DP World Americas.
"This report highlights how integrating sustainability measures can serve as a catalyst for substantial improvements in both economic efficiency and strategic innovation.
"Companies are now recognising that sustainable practices enhance operational resilience and are essential for long-term profitability.”
Sarah Mouriño, Senior Director, Sustainability for DP World Americas, adds: “Investment in supply chain sustainability is proving its value beyond compliance and stakeholder reputation. Moving forward, supply chain decision-making – for everything from partner selection to budget allocation and network design – will consider both the economic and environmental benefits of sustainability.
“Sustainability has grown so that it’s now inclusive of diversity and inclusion. It has extended beyond the traditional concept of corporate social responsibility.
"It’s safety, security and making sure that data is protected. You now have people who really specialise in these different elements of sustainability."
Despite this investment, 43% of respondents are only somewhat concerned about the impact of climate change on their supply chains in the next ten years, although another 30% are very or extremely concerned.
"It’s hard to escape messaging around the impact of climate change on every aspect of human life and the state of the environment," Sarah continues. “The impact of climate change in their logistics operations isn’t as big of a concern because they don’t own the assets that are moving cargo.
"In the face of a disruption they can change up their routing to adapt but, if you think of it in terms of less availability of fossil fuels or extreme weather events that flood factories and make ports inaccessible, I suspect they might think differently."
This apparent prioritisation of sustainability is no longer surface level in an attempt to attract consumers; it goes deeper and is reflected in specialist programmes, as Bronwyn Poutney, Environment Manager for DP World in Canada, explains.
“There seems to be a greater value placed on sustainability,” she says.
“For instance, the Port of Vancouver runs their EcoAction Program that offers up to a 75% discount on harbour dues for shipping lines that use shore power, helping to encourage cleaner and quieter ships to call the Port of Vancouver.”
You can read more examples in the report.
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