A survey of 5,000 SMEs across 11 countries including India by logistics firm DHL Express has highlighted sustainability as the top priority for businesses across the supply chain operations. According to the survey covering enterprises in the UK, France, Germany, the Netherlands, Australia, China, Singapore, Japan, Mexico, and Canada as well, at least two-thirds of SMEs said that sustainability is either “very important” or “extremely important” to them.
The survey, released on December 2, 2024, covered SMEs in retail, consumer goods, professional services, engineering, fashion, technology, chemicals, life science & healthcare, and financial service sectors.
Despite the high relevance of sustainability, the investment readiness among SMEs is low as most enterprises are reluctant to allocate a budget towards sustainable initiatives. The survey said 53 per cent are only willing to invest 1-3 per cent of their operating budget into sustainable practices. Only 9 per cent of SMEs said they will invest more than 5 per cent while 16 per cent said they won’t invest.
While the global average for customers willing to pay more for sustainable shipping is just 23 per cent, confidence is notably higher among SMEs in India and China, where 51 per cent and 47 per cent, respectively, believe their customers would be willing to do so.
With respect to challenges towards sustainability goals, SMEs cited securing internal and customer buy-in.
Among the most sustainable industries, the survey highlighted the fashion and financial services sectors. 81 per cent of respondents in the fashion sector said it is “very important” or “extremely important” to their business and 78 per cent believed offering sustainable delivery options could improve their brand image. 88 per cent SMEs in the financial services were most willing to allocate operating budget to sustainability practices and most likely to feel offering sustainable delivery options could lead to increased commercial success.
Speaking on the survey results, Michiel Greeven, Executive Vice President, Global Commercial at DHL Express said, “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.”