Sustainability leads to financial success for retailers, per report

Adopting sustainable practices does more than just help the planet: it helps drive financial success, according to new research from supplier collaborator Supply Pilot.

Formerly known as Solutions 4 Retail Brands, the group’s latest white paper title “From Intention to Action '' finds that sustainable practices are responsible for about 20% of a business’ financial results, and that sustainable supplier collaboration impacts financial performance the most. The study’s results also reveal that ‘moral motivation’ is the biggest driver for companies looking to be more sustainable, with 87% of brands pointing to ‘environmental concern’ and 88% governed by ‘doing the right thing’.

“The study indicates that further improving sustainable performance can have a positive impact on financial performance,” said James Butcher, CEO of Supply Pilot. “The best way to overcome the complexity of becoming more sustainable is through supplier collaboration. We’ve seen from our work alongside brands and retailers just how beneficial sustainable practices can be for businesses’ bottom lines, and the data from this research bears that out.”

Butcher discussed the current state of the retailer-supplier relationship in the latest issue of Store Brands Magazine.

“The study’s findings do not support the prevailing view that there is a trade-off between environmental performance and financial performance,” said the company. “As such, there should be less hesitation and more commitment to sustainability adoption at a board level within retail.”

Findings in the study also show that sustainability can be a competitive advantage for retailers, including those with private label selections, and that a “data-driven, people-centered” approach to sustainability is the most successful way to integrate sustainable practices.

The full report from Supply Pilot can be found here.