BME survey: Sustainability falls by the wayside
Sustainability has been a dominant topic in procurement for a long time, but many companies are now focused on other issues. These are the findings of a survey of 216 company executives conducted by the German Association of Materials Management, Purchasing and Logistics (BME) in collaboration with management consultants Expense Reduction Analysts. Of those surveyed, 83% cited creating secure supply chains as a current challenge, while 72% cited sharply rising costs. Only 31% of the survey’s respondents cited sustainability. The respondents were also more concerned about digitalisation and the shortage of skilled workers than reducing CO2 emissions and other environmental and social issues.
The study clearly shows that financial considerations still take considerable precedence over issues of sustainability, according to the authors of the study. They added that the climate crisis and efforts to reduce CO2 emissions remained the topics of the decade, but since mid-2022, companies have adjusted their priorities due to the worsening geopolitical situation.
Sustainability isn’t being measured objectively
There’s also a further issue at play. As it stands, sustainability cannot be measured objectively due to insufficient transparency and the lack of a universal framework to do so. According to the survey, companies would find it useful to have reliable standards and figures. Besides, almost half of the respondents view sustainability as a responsibility for society as a whole. Standards and norms could therefore help to establish clear sustainability commitments and criteria for companies.
The study also suggested that external pressure from customers and investors for companies to behave in a more sustainable way is not as acute as it may seem. Only around a third of the study’s respondents said there was public demand for companies to take environmental action. For example, there are only a handful of cases of companies losing work due to a lack of commitment to sustainability. Certifications are currently the most popular way for companies to demonstrate what they’re doing to protect the environment and achieve a competitive advantage.
Sustainability reports have become the norm
Sustainability reports have become firmly established. These reports are a chance for suppliers - and their partner companies along the entire supply chain - to publish information relating to sustainability. 42% of the participating companies said they had published at least one sustainability report - including 16% who were not obligated to do so.
But other results suggest that many companies still have a long way to go when it comes to sustainability. For example, just under a quarter of respondents said they had incorporated ESG (Environmental, Social, Corporate Governance) guidelines into their corporate strategy, and only 15% said these criteria were firmly integrated into their procurement criteria.
The survey also found that rising costs and sustainability requirements had led to an increased redesign of products. But even here, the survey found that cost benefits take priority over social and environmental concerns.
