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Supply chain sustainability kicking goals for small businesses

DHL surveyed 5000 SME decision makers across the world to assess how sustainable supply chain practices improve their own greenification

Australian businesses have been included in an in-depth DHL survey gauging the importance of sustainability to SME decision makers across 11 key international markets.

The survey, which was conducted by logistics provider DHL Express, assessed responses from Australia, the UK, Singapore, Japan, China, India, France, Germany, the Netherlands, Mexico and Canada, with the results coming from a span of nine different business sectors.

At least two thirds of the SMEs within all surveyed sectors cited sustainability is “very important” or “extremely important”, however most were reluctant to allocate budget towards sustainable initiatives.

Over half of businesses said they were willing to invest between one and three per cent of their operating budget into sustainable practices, only nine per cent were willing to invest more than five per cent, while 16 per cent said they would invest nothing.

A key part of this falls to a lack of confidence that customers are willing to pay more money for more sustainable shipping. Just 23 per cent of surveyed businesses expressed confidence that customers would be willing to fork out extra money for a more sustainable service.

This was particularly relevant in Germany where 74 per cent of surveyed businesses cited internal and customer buy-in issues to implementing sustainable practices.

“The challenge of developing and implementing a sustainability strategy can often seem overwhelming,” Executive Vice President Global Commercial at DHL Express Michiel Greenven says.

“Many survey respondents highlighted not knowing where to start on their journey.”

DHL Express is making strides in electrifying its last-mile delivery sector and, as a result, improving the carbon footprint of the wider DHL Group.

By 2030 it has committed to electrify a third of its last-mile fleet and increase the share of sustainable fuels to 30 per cent.

Greenven says a key step in SMEs ensuring they are improving their sustainability is partnering with shipping and logistics companies that are already making headway in the space.

“By partnering with a trusted logistics leader like DHL Express … SMEs can position themselves to remain viable, competitive and ensure long-term growth.”

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