Business, Feature, Freight News

Sustainability a Top Priority for SMEs

[ December 13, 2024   //   Gary G Burrows ]

Sustainability has become a strategic imperative for small and medium-sized enterprises, or SMEs, significantly influencing their long-term value and credibility, according to an international survey from DHL Express.
DHL Express has published an eBook, Sustainability Matters: DHL Express’ Global Survey on Small Businesses, based on in-depth survey of 5,000 SME decision makers across 11 markets: the UK, France, Germany, the Netherlands, Australia, China, Singapore, Japan, Mexico, Canada and India. Participating businesses spanned nine sectors: retail, consumer goods, professional services, engineering, fashion, technology, chemicals, life science and healthcare, and financial service.
DHL Express said the study reflects SMEs’ prioritization of sustainability across their supply chain operations, while the results will help them navigate the evolving landscape and seize new opportunities across their supply chain operations.
“Sustainability is now at the forefront of many businesses’ agendas. But the challenge of developing and implementing a sustainability strategy can often seem overwhelming – with many survey respondents highlighting not knowing where to start on the journey,” said Michiel Greeven, executive vice president global commercial at DHL Express.

Willing to Invest?

At least two-thirds of SME respondents said sustainability is either “very important” or “extremely important” to them. The financial services and fashion sectors agreed most strongly with this sentiment, with 81 percent of respondents in each group answering this way.
While SMEs show widespread understanding of the importance of the issue, they are reluctant to allocate budget towards sustainable initiatives. Only 53 percent are only willing to invest 1 percent to 3 percent of their operating budget into sustainable practices, while 9 percent will invest more than 5 percent, and 16 percent won’t invest.
Will customers pay more for sustainable shipping? Only 23 percent said they are willing, while the confidence is higher among SMEs in India and China, with 51 percent and 47 percent, respectively, believing their customers would be willing to do so.
Among the challenges of reaching sustainability goals, SMEs saw securing internal and customer buy-in as the top issue. This was particularly prevalent in Germany, where 74 percent of SMEs acknowledge this challenge.
In the fashion industry, which often faces significant scrutiny over the sustainability of its supply chain, 81 percent of fashion respondents said it is “very important” or “extremely important” to their business, while about 78 percent believe offering sustainable delivery options could improve their brand image.
SMEs in the financial services sector are the most likely to say sustainability is “extremely important” to their business (43 percent), while 88 percent of the sector is most willing to allocate operating budget to sustainability practices. They’re also the most likely to feel offering sustainable delivery options could lead to increased commercial success, with 47 percent responding “to a large/to a very large” extent.

Sustainability Goals

DHL Express’ goals to enhance the sustainability of its operations and services include reducing annual GHG emissions to under 29 million tonnes; electrifying 66 percent of its last-mile delivery vehicles; and increasing the share of sustainable fuels to more than 30 percent by 2030.
Moreover, DHL Express’ GoGreen Plus service can help customers reduce their Scope 3 emissions through using sustainable aviation fuel, or SAF, in the DHL Express air cargo fleet. In a “book and claim” approach, the Scope 3 savings achieved are passed on to customers in the form of certificates.
DHL Express’ eBook is available for download at https://www.dhl.com/discover/en-global/logistics-advice/sustainability-and-green-logistics/sustainability-survey.

Tags: DHL Express