OSLO/COPENHAGEN: A survey of over 2000 businessmen in Europe, Asia and the Americas says customers are demanding more sustainable supply chains from their suppliers.
The report by DNV GL and the research institute GFK Eurisko found 96 percent of respondents consider aspects of sustainability when choosing a supplier with emissions mitigation as the most important factor (56 percent). Other criteria was health and safety (51 percent); economics (43 percent) and ethics (29 percent).
"With globalization and the increase in the number of intermediaries, a secure and defendable supply chain is important in order to avoid disruptions that can affect business performance. Sustainable sourcing is a fast developing requirement, driven by customers. Companies that don't act will have a hard time competing," says Luca Crisciotti, CEO of DNV GL - Business Assurance.
The survey also found that 80 percent of companies experienced pressure from their customers to prove supply chain sustainability.
Of those surveyed, 41 percent claim to have undertaken a supply chain audit in the last three years although the majority have limited the process to tier 1 suppliers.
"To face tomorrows' business climate, three basic steps have to be taken. Firstly, companies need to understand their key stakeholders' expectations with respect to the sustainability of their supply chain. Secondly, they need to clearly define their own expectations, inform their suppliers and require them to act coherently. Lastly, it is fundamental to develop a method to check and make sure that all the members in the supply chain understand and implement the requests," explained Crisciotti.
DNV and GL is one of the world's leading ship and offshore certification organizations and a leading technical advisor to the global oil and gas industry.