Mumbai/Bonn, Dec 2, 2024: Sustainability has become a strategic imperative for small and medium-sized enterprises (SMEs), significantly influencing their long-term value and credibility, according to a new international survey.
To better understand the growing prioritization of sustainability across the supply chain operations, DHL Express conducted an in-depth survey of 5,000 SME decision makers across 11 global markets: the UK, France, Germany, the Netherlands, Australia, China, Singapore, Japan, Mexico, Canada and India.
The survey found that 95% of Indian SMEs believe sustainability is "very important" or "extremely important" to their business. This is significantly higher than the global average of 75% and highlights the strong commitment to sustainability among Indian businesses.
“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. By parterning with a trusted logistics leader like DHL Express, renowned for its dedicated portfolio of low emissions shipping solutions, SMEs can position themselves to remain viable, competitive, and ensure long-term growth,” says Michiel Greeven, Executive Vice President Global Commercial at DHL Express.
"Sustainability is no longer a 'nice to have' for businesses, it has become a necessity to drive growth, attract customers, and secure long-term investment," says R S Subramanian, SVP South Asia at DHL Express.
"Indian SMEs are recognizing this and are taking proactive steps to incorporate sustainable practices into their operations. In fact, as per our survey at DHL, we see that 51% of SMEs in India and 47% of SMEs in China believe their customers would be willing to pay more for sustainable shipping, compared to the global average of 23%. This is likely because India and China are exporting powerhouses, and SMEs here are leaning into sustainable strategies to appeal to Western consumers," he said.
The businesses that took part in the research spanned nine sectors: retail, consumer goods, professional services, engineering, fashion, technology, chemicals, life science & healthcare, and financial service, providing valuable insights that will help SMEs navigate the evolving landscape and seize new opportunities. The resulting eBook discovers the impact sustainability is having on SMEs and the growing prioritization across their supply chain operations.
According to the survey, 72% of Chinese SMEs and 59% of Indian SMEs said that sustainability is "extremely important" to their business. This is significantly higher than the global average of 35%.
About 51% of Indian SMEs believe their customers are "extremely" or "very" willing to pay more for sustainable shipping, significantly higher than the global average of 23%. Also 68% of Indian SMEs believe that offering sustainable delivery options will lead to increased commercial success. The survey said 90% of Indian SMEs say it is "extremely" or "very" important to partner with logistics providers that prioritize sustainability.
At least two thirds of SMEs within all surveyed sectors said that sustainability is either “very important” or “extremely important” to them. The financial services sector and fashion sector agreed most strongly with this sentiment, with 81% of respondents in each group answering this way. Despite a widespread understanding of the importance of the issue, most SMEs are reluctant to allocate budget towards sustainable initiatives. Most (53%) are only willing to invest 1-3% of their operating budget into sustainable practices. Only 9% of SMEs will invest more than 5%, whilst 16% will invest nothing.
When asked about their challenges in reaching their sustainability goals, the main concern for most SMEs across all markets was securing internal and customer buy-in. This is particularly prevalent in Germany, where 74% of SMEs acknowledge this challenge.
Although the fashion industry is often subject to significant scrutiny over the sustainability of its supply chain, most fashion SMEs are strongly pro-sustainability. 81% of respondents in the sector said it is “very important” or “extremely important” to their business and over three-quarters (78%) believe offering sustainable delivery options could improve their brand image (“to some/a large/a very large” extent). SMEs in the financial services sector are the most likely to say sustainability is “extremely important” to their business (43%). This sector is the most willing to allocate operating budget to sustainability practices (88%), and the most likely to feel offering sustainable delivery options could lead to increased commercial success (47% “to a large/to a very large” extent.)
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