Businesses look to sustainability
Businesses involved in complex ecosystems of global supply chains are looking to sustainability to unlock new financial benefits, according to an HSBC survey.
The HSBC survey of more than 8,500 companies in 34 markets, “Navigator: Now, Next and How for Business”, found that businesses were making sustainability changes in their supply chains to improve their bottom line.
Ethical and environmental sustainability were seen as very important to both goods and services businesses in Viet Nam, according to the survey’s results.
Ninety per cent of businesses said they had monitored their supply chains for environmental and ethical standards.
Only a minority of respondents (9 per cent) reported that supply chain sustainability was not a focus for their business.
For both goods and services businesses, making sustainability and ethical changes to improve revenues and financial performance (96 per cent for goods/100 per cent for services) were marginally the most important, followed by making changes to support cost efficiencies (94 per cent for both goods and services).
On a global level, almost a third (31 per cent) of companies worldwide said they planned to make sustainability-related changes to their supply chains over the next three years.
Of those making ethical or environmentally sustainable changes to their supply chains, cost efficiencies (84 per cent) and improved revenues and financial performance (also 84 per cent) were the main motivating factors.
This trend comes as companies face increasing pressure from customers to be more sustainable and transparent about their sourcing.
Winfield Wong, country head of wholesale banking of HSBC Viet Nam, said Vietnamese businesses were integrated into international ecosystems.
“To grow in this competitive landscape, companies are now aware of the need to place environment, society and governance at the heart of their operations,” he said.
As for goods firms in Viet Nam, when asked about top changes that they plan in their supply chains over the next three years, close to half (46 per cent) of respondents plan to do business in new markets and locations, while around one-third (32 per cent) plan to select suppliers based on their sustainability practices.
Planned changes to supply chains are largely being implemented to increase their profits and revenues (79 per cent).