Over the past few years, sustainability has become one of the biggest talking points in the business world. Increasingly, prominent and highly visible companies are implementing sustainable practices within their operations. Business leaders are recognising that sustainability is not only necessary, if we, as a society, are going to achieve net-zero goals and combat climate change, but that sustainability can also be a form of competitive advantage – increasing efficiencies and cutting costs.
In this blog, the OCI team explores a number of the business sustainability trends that are pervading the corporate world in 2022. Read on to learn more, and if you’d like to find out how OCI can support your transition to sustainability in the supply chain – please do not hesitate to contact us today.
Current Highlights in the Industry
Corporate sustainability trends have continued to grow and develop in the last couple of years. Discussions of ESG (Environmental, Social and Governance) have become more widespread than ever before, and more and more companies are getting actively involved in sustainability practices. Almost all of the largest companies in the world release a sustainability report and provide clear goals that they’re working towards, and thousands of companies are now working towards the objective of net-zero by 2050.
There has been a bigger push to make global supply chains more sustainable and reduce overall emissions. Many organisations are setting higher standards and requiring suppliers to place climate and human rights demands on their own suppliers. For instance, Salesforce integrated sustainability into its supply chain by making suppliers agree to a number of principles in a new Sustainability Exhibit. Likewise, Tesco and Santander partnered to give Tesco suppliers better financing rates if they improve their businesses and make tangible progress on sustainability goals. These are just two noteworthy examples of visible companies making progress on sustainability in supply chains.
Why Businesses are Concentrating on Digitalisation and Sustainability
Digitalisation and sustainability work closely together; in essence, both of these two areas are interlinked. A digital transformation is extremely beneficial in terms of sustainability, it makes a company more efficient and intelligent with the resources and energy that it uses. As a consequence, many businesses are dedicating lots of time and attention to digitalisation and sustainability together.
Digital tools such as supply chain finance technology can support better corporate sustainability, by driving innovation, improving areas of inefficiency, and delivering value for all stakeholders. Technologies that incorporate data and AI systems enable organisations to stay flexible and responsive at all times, as well as increase their operational efficiency. They allow businesses to optimise real-time management and as a result, minimise the overall emissions released by them. Above all though, digitalisation needs to be rolled out on a greater scale in the corporate world to enhance sustainability and improve overall efficiency.
Business Strategy and Sustainability
Sustainability can be an effective corporate strategy for a company. Being sustainable can give a corporation a competitive advantage, if doing so results in them achieving an above-average level of performance. Companies that adopt innovative, original and unique practices – whether it be in relation to employee recruitment or engagement – will solidify themselves as leaders in their industry.
These companies will have their own, distinct strategy and this will be difficult for other companies to try and imitate. Being able to attract and retain talent through sustainable practices will be hugely beneficial for any organisation too, no matter their size or scale. What’s more, delivering improved efficiencies that exceed competitors’ performance levels will also be a clear strategic advantage.
Here at OCI, we accelerate business growth through tailored commercial management solutions, leveraging our global network and premier expertise to optimise the performance of large corporates and governments. We work with clients from all areas of the globe and we support a diverse range of companies spanning several industries. As we’re industry and product-agnostic, we can confidently manage the supply chains of all of our clients – starting from day one.
From technology and media to pharmaceuticals and consumables, we have in-depth expertise in a number of sectors. If you would like to find out more about how OCI can support your organisation to achieve its full potential and streamline its supply chain, then please do not hesitate to contact us directly today. Leave us a message via the online inquiry form on our website and we’ll get back to you as soon as possible. To explore our supply chain finance technology in more depth, visit the OCI website today.