In prior Supply Chain Matters blog declarations, this Industry Analyst has declared a belief that the recent ground breaking Paris COP21 Agreement on stemming global climate change provides both a profound call to action as well as a significant opportunity– an opportunity for bolder collaboration and joint goal-setting to not only address greenhouse gas reduction imperatives and to saving our planet, but the imperative of sustainable business itself.  Paris_COP21

After receiving a direct Tweet from consulting firm BearingPoint regarding the latest results of its 5th Supply Chain Monitor survey on sustainable supply chain efforts, this analyst remains even more convinced on the need for moving such initiatives beyond functional to line-of-business level efforts.

According to the BearingPoint survey summary, Sustainable is the new green for supply chain.

To cite a specific finding:

In 2015, the green supply chain is widely seen as a strategic priority: if it isn’t already, it will be in the next 1-3 years.

Having a green supply chain is now high on the agenda for 59 percent of European companies, and for 51 percent of U.S. companies. Considerably more U.S. companies (2 percent compared with 6 percent of European companies) see it becoming an important priority in the short term (the next 1-3 years), as they strive to close the gap and bring their activities in line with Europe.”

The report notes that European supply chain respondents indicated they have already harvested most of the low-hanging fruit of carbon reduction initiatives. The study authors indicate that the data suggests that in the post COP 21 period, they perceive a revival of green awareness that includes more social responsibility efforts in overall supply chain sustainability plans.

Consider that according to this study, 70 percent of European based companies currently view the social aspects of supply chain as a strategic priority in their supply chain management efforts with an additional 12 percent indicating that would be the case in the next 1-5 years. The report further observes that the U.S. has raised its social responsibility game, which is attributed to the fact that U.S. activity has also lagged European efforts by a visible margin.

Regarding the notion of raising sustainability efforts towards a broader objective of sustainable business, there was an interesting finding:

Although CSR (Corporate social responsibility) departments exist in many companies now, they don’t necessarily have the broad view or the decision-making power to move things forward to the degree needed.”

The authors go on to note that companies now need to implement professional management concepts to plan, execute and control their extended sustainable supply chain management activities to include internal and external incentive systems required to drive change.

That is encouraging data to state the least. Including social responsibility under the sustainability strategic umbrella adds a broader strategic mission implying higher organizational and executive level stakeholder interests.

The data is quite interesting and reinforces that industries are indeed approaching another crossroads in the COP 21 era of global climate change and sustainability efforts.

Is your supply chain organization, or better still, are your company executives taking this view?

Readers can download the full BearingPoint study at this 5th Supply Chain Monitor web link.

Bob Ferrari