Investment managers, both in the UK and US, are saying that companies without sustainable supply chains will receive less investment over the next decade.
This is according to a study carried out by procurement consultancy Proxima, who expect to see the share prices of the applicable businesses fall.
The report, published on 8 September, analyses supply chain sustainability through the lens of the investment manager.
The research found that over eight in 10 (85%) investment managers believe that businesses who do not implement supply chain sustainability initiatives will see share prices fall as a result over the next decade.
Investors are concerned about inaction, with 84% also stating that issues with supplychain sustainability and ESG standards are a risk to their investments.
There is overwhelming evidence that supply chain sustainability is at the top of the investor’s agenda with 97% of investment managers telling the firm they consider the sustainability standards of a business’ supply chain when making investment decisions.
Simon Geale, Executive Vice President at Proxima, said: “It is clear that investors have supply chain sustainability in their sights as we look to build a better post-pandemic world.”
“The concept of how a business can create value is changing, and business leaders are seeking to balance short term profit with progressing a broader range of ESG factors that will create sustained value in the mid-term. This trend is only set to continue and will dominate the coming decade; therefore, action now can create first mover advantage.”
“Supply chains are going to be at the heart of the change. They can be complex, and frequently are, but ultimately remain a key part of the solution along with innovation and collaboration. It’s vital that a business brings in the expertise it needs to address the challenge.”