Sustainable Supply Chains: Profitability, Efficiency & Growth
For years, the relationship between sustainability and profitability in supply chain management was perceived as a trade-off. Many businesses believed that adopting environmentally responsible practices was a costly necessity—an expense required for regulatory compliance and maintaining a positive reputation. However, this perception is rapidly shifting.
A recent industry study by DP World and Supply Chain Dive’s studioID surveyed 150 professionals across operations, supply chain, and procurement roles in various industries. The findings indicate a significant change in mindset: 82% of respondents now believe that companies prioritizing supply chain sustainability experience long-term financial benefits. This data represents a turning point, reframing sustainability as not just an obligation but a strategic driver of financial growth, efficiency, and resilience.
These insights are detailed in DP World’s report, “Sustainability Drives Financial Benefit Across Supply Chains,” now available for download.
The Strategic Elevation of Sustainability
Sustainability is no longer a secondary concern—it has become a core strategic focus for corporations worldwide. The survey reveals that 71% of respondents reported an increased emphasis on supply chain sustainability and decarbonization over the past three years, with 25% noting a significant rise. This trend is set to continue, as 80% plan to allocate more resources to sustainability initiatives in the next three years.
This transformation is more than rhetoric—companies are investing in it through expanded budgets, additional personnel, and organizational restructuring. Sarah Mouriño, Senior Director of Sustainability at DP World Americas, highlights the broader scope of sustainability: “It now includes diversity and inclusion, data security, and other key factors that enhance organizational resilience.”
Financial Benefits and Competitive Edge
Although consumer expectations and regulatory demands continue to influence sustainability efforts, financial and operational advantages are becoming key motivators. The survey identifies efficiency improvements and cost reductions as primary drivers, cited by 36% of respondents. Additionally, 30% view sustainability as a way to strengthen supply chain resilience—an essential attribute in a world of frequent disruptions. Nearly one-third (32%) recognize sustainability as a competitive advantage that enhances their market position.
Morten Johansen, Chief Operating Officer of DP World Americas, underscores this perspective: “Sustainability is no longer a trend—it is a fundamental aspect of modern business strategy. This report illustrates how integrating sustainable practices leads to meaningful improvements in both economic performance and strategic innovation.”
Bronwyn Pountney, Environment Manager for DP World Canada, highlights practical incentives driving this shift: “The Port of Vancouver’s EcoAction Program provides shipping lines with discounts of up to 75% on harbor dues when they utilize shore power.” Such initiatives demonstrate the increasing alignment between environmental responsibility and cost efficiency.
Key Business Drivers for Sustainability
Organizations are now evaluating sustainability initiatives with a business-first approach. Compliance with regulations and risk mitigation remain top priorities, but cost savings through efficiency gains—such as reducing waste, streamlining processes, and optimizing energy use—are also key factors for supply chain leaders, who are traditionally assessed on cost and performance metrics.
Mouriño reinforces this alignment: “Lowering emissions often coincides with improving operational efficiency. Once companies recognize this correlation, the business case for sustainability becomes clear.”
Challenges: Costs and Regulatory Uncertainty
Despite growing momentum, challenges persist. Cost remains the most significant hurdle, with 65% of respondents identifying it as a primary concern. Additionally, regulatory uncertainty and the complexities of implementation present further obstacles. Nonetheless, the direction is clear—supply chain leaders are advancing sustainability efforts, driven by both necessity and opportunity.
Addressing Scope 3 Emissions
One of the most critical emerging trends is the focus on Scope 3 emissions—those generated by suppliers and partners. While the U.S. Securities and Exchange Commission (SEC) recently delayed mandatory Scope 3 reporting, jurisdictions such as California and the European Union are moving forward with such requirements. Forward-thinking companies are taking proactive steps rather than waiting for mandates.
The survey highlights leading strategies for reducing Scope 3 emissions, including:
A recent industry study by DP World and Supply Chain Dive’s studioID surveyed 150 professionals across operations, supply chain, and procurement roles in various industries. The findings indicate a significant change in mindset: 82% of respondents now believe that companies prioritizing supply chain sustainability experience long-term financial benefits. This data represents a turning point, reframing sustainability as not just an obligation but a strategic driver of financial growth, efficiency, and resilience.
These insights are detailed in DP World’s report, “Sustainability Drives Financial Benefit Across Supply Chains,” now available for download.
The Strategic Elevation of Sustainability
Sustainability is no longer a secondary concern—it has become a core strategic focus for corporations worldwide. The survey reveals that 71% of respondents reported an increased emphasis on supply chain sustainability and decarbonization over the past three years, with 25% noting a significant rise. This trend is set to continue, as 80% plan to allocate more resources to sustainability initiatives in the next three years.
This transformation is more than rhetoric—companies are investing in it through expanded budgets, additional personnel, and organizational restructuring. Sarah Mouriño, Senior Director of Sustainability at DP World Americas, highlights the broader scope of sustainability: “It now includes diversity and inclusion, data security, and other key factors that enhance organizational resilience.”
Financial Benefits and Competitive Edge
Although consumer expectations and regulatory demands continue to influence sustainability efforts, financial and operational advantages are becoming key motivators. The survey identifies efficiency improvements and cost reductions as primary drivers, cited by 36% of respondents. Additionally, 30% view sustainability as a way to strengthen supply chain resilience—an essential attribute in a world of frequent disruptions. Nearly one-third (32%) recognize sustainability as a competitive advantage that enhances their market position.
Morten Johansen, Chief Operating Officer of DP World Americas, underscores this perspective: “Sustainability is no longer a trend—it is a fundamental aspect of modern business strategy. This report illustrates how integrating sustainable practices leads to meaningful improvements in both economic performance and strategic innovation.”
Bronwyn Pountney, Environment Manager for DP World Canada, highlights practical incentives driving this shift: “The Port of Vancouver’s EcoAction Program provides shipping lines with discounts of up to 75% on harbor dues when they utilize shore power.” Such initiatives demonstrate the increasing alignment between environmental responsibility and cost efficiency.
Key Business Drivers for Sustainability
Organizations are now evaluating sustainability initiatives with a business-first approach. Compliance with regulations and risk mitigation remain top priorities, but cost savings through efficiency gains—such as reducing waste, streamlining processes, and optimizing energy use—are also key factors for supply chain leaders, who are traditionally assessed on cost and performance metrics.
Mouriño reinforces this alignment: “Lowering emissions often coincides with improving operational efficiency. Once companies recognize this correlation, the business case for sustainability becomes clear.”
Challenges: Costs and Regulatory Uncertainty
Despite growing momentum, challenges persist. Cost remains the most significant hurdle, with 65% of respondents identifying it as a primary concern. Additionally, regulatory uncertainty and the complexities of implementation present further obstacles. Nonetheless, the direction is clear—supply chain leaders are advancing sustainability efforts, driven by both necessity and opportunity.
Addressing Scope 3 Emissions
One of the most critical emerging trends is the focus on Scope 3 emissions—those generated by suppliers and partners. While the U.S. Securities and Exchange Commission (SEC) recently delayed mandatory Scope 3 reporting, jurisdictions such as California and the European Union are moving forward with such requirements. Forward-thinking companies are taking proactive steps rather than waiting for mandates.
The survey highlights leading strategies for reducing Scope 3 emissions, including:
- Restructuring supply chains through nearshoring and reshoring (25%)
- Partnering with industry peers on decarbonization initiatives (25%)
- Minimizing or replacing high-emission third-party sources (23%)
These strategies signal a shift from passive reporting to proactive transformation as companies prepare for evolving regulatory landscapes.
Carbon Accounting as a Business Imperative
As organizations work toward emission reductions, carbon accounting has become a key focus. According to the survey, 35% of respondents are strengthening collaboration between accounting and supply chain teams to improve carbon data accuracy. Additionally, investment in emissions tracking systems and the establishment of reduction targets are gaining momentum.
Transportation, a major emissions contributor, is under particular scrutiny. Companies are adopting multimodal transport solutions, shifting from air to sea freight, and exploring alternative fuels. Apple’s transition from air to ocean freight, reducing emissions by 95%, is a widely cited benchmark. UPS, similarly, is making strides by aiming to use 40% alternative fuel by 2025.
Collaboration as a Force Multiplier
Partnerships are proving to be essential in sustainability efforts. Supplier sustainability credentials now play a crucial role in selection criteria, with 46% of respondents indicating that a supplier’s decarbonization capabilities significantly influence partnership decisions.
Pountney highlights DP World’s sustainability initiatives in Vancouver, where low-carbon fuels and electrified port equipment are transforming container operations. “When partners see us reducing our Scope 1 and 2 emissions, they understand that working with us can help lower their Scope 3 footprint,” she explains. “It’s mutually beneficial.”
Suppliers are increasingly being seen as key enablers of sustainability. The survey identifies top expectations from suppliers, including:
Carbon Accounting as a Business Imperative
As organizations work toward emission reductions, carbon accounting has become a key focus. According to the survey, 35% of respondents are strengthening collaboration between accounting and supply chain teams to improve carbon data accuracy. Additionally, investment in emissions tracking systems and the establishment of reduction targets are gaining momentum.
Transportation, a major emissions contributor, is under particular scrutiny. Companies are adopting multimodal transport solutions, shifting from air to sea freight, and exploring alternative fuels. Apple’s transition from air to ocean freight, reducing emissions by 95%, is a widely cited benchmark. UPS, similarly, is making strides by aiming to use 40% alternative fuel by 2025.
Collaboration as a Force Multiplier
Partnerships are proving to be essential in sustainability efforts. Supplier sustainability credentials now play a crucial role in selection criteria, with 46% of respondents indicating that a supplier’s decarbonization capabilities significantly influence partnership decisions.
Pountney highlights DP World’s sustainability initiatives in Vancouver, where low-carbon fuels and electrified port equipment are transforming container operations. “When partners see us reducing our Scope 1 and 2 emissions, they understand that working with us can help lower their Scope 3 footprint,” she explains. “It’s mutually beneficial.”
Suppliers are increasingly being seen as key enablers of sustainability. The survey identifies top expectations from suppliers, including:
- Reducing transportation-related emissions (37%)
- Developing energy-efficient products and materials (35%)
- Implementing carbon reduction initiatives within their operations (31%)
The Future of Sustainable Supply Chains
The findings from DP World’s survey highlight a major shift in the industry. Sustainability is no longer a box to check—it is becoming a core driver of business growth, efficiency, and resilience. Companies that integrate sustainability into their supply chain strategies will be better equipped to navigate an increasingly complex global landscape.
As Mouriño aptly puts it, “The business advantages of sustainability are gaining widespread recognition. This transformation will only continue to accelerate.”
The future of supply chains is not just sustainable—it’s profitable.
Click here to know more.
The findings from DP World’s survey highlight a major shift in the industry. Sustainability is no longer a box to check—it is becoming a core driver of business growth, efficiency, and resilience. Companies that integrate sustainability into their supply chain strategies will be better equipped to navigate an increasingly complex global landscape.
As Mouriño aptly puts it, “The business advantages of sustainability are gaining widespread recognition. This transformation will only continue to accelerate.”
The future of supply chains is not just sustainable—it’s profitable.
Click here to know more.
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