Supply Chain Sustainability Takes Root
Whether the motive is saving the environment or saving money, companies are embracing supply chain sustainability from the ground up.
Sustainability is rising. Born out of global concern over climate change, on April 22, 2016, a record 175 countries signed the Paris climate agreement, voluntarily pledging to cut greenhouse gas emissions.
Businesses are paying attention. A 2014 McKinsey & Company survey asked respondents about the actions their companies are taking to address environmental issues, and practices they use to manage sustainability. CEOs were twice as likely as they were two years before to see sustainability as a top priority, according to survey results. Their stated motivation in 2014 was aligning sustainability with the organization’s goals; two years prior, cost cutting was the primary motivation.
When it comes to green and sustainable supply chains, though, cost cutting is still the driving force.