Suppliers Pursuing Unsustainable Practices Warned: Findings Revealed by Bain Poll
In a significant shift, sustainability is once again gaining prominence in the corporate world, according to a new report by Bain & Company. Over the past three years, there has been a resurgence in the importance of sustainability for CEOs, with 54% of CEOs linking sustainability to business value in 2025, up from only 34% in 2018.
This renewed focus on sustainability is not limited to the boardroom. A consumer survey reveals a wide range of sustainable practices adopted by consumers, with 49% reporting lower energy use, 46% recycling, 41% using reusable products, and 38% buying fewer disposable items. These eco-friendly habits are not just a passing trend, as 70% of respondents expressed a desire to adopt more sustainable practices.
The report also highlights a change in business leaders' views of sustainability. There has been a shift from viewing sustainability as a compliance and moral issue to one that aligns with core business risks and operational factors. This shift is reflected in the actions of companies, with 49% of businesses already buying more from their more sustainable suppliers, up from 39% last year, and 68% planning to do so over the next three years.
B2B buyers are also demonstrating a willingness to pay more for sustainable products. Currently, a third of B2B buyers are willing to pay more than 5% extra for more sustainable products, while 60% expect to do so in three years. In fact, more than 80% of B2B buyers paid a premium for their most recent purchase of a sustainable product.
The sustainability of offers is expected to become the second top purchasing criteria for B2B buyers, behind only 'quality', over the next three years. Half of the B2B buyers surveyed currently spend more with sustainable suppliers, and half plan to drop suppliers that don't meet sustainability criteria over the next three years.
The Buhlmann Group is one such company that is taking a proactive approach to sustainability. Within the next three years, they plan to systematically review their suppliers using AI-supported risk analyses for sustainability criteria. If violations of labor rights or environmental regulations are detected, they initiate processes that may include supplier termination.
The report, which surveyed more than 14,000 consumers across 8 countries, also revealed that environmental sustainability remains a top concern for consumers. Last year, 79% of respondents reported being concerned about environmental sustainability, a slight decline from the prior year. However, cost continues to be the primary barrier to adopting more sustainable practices, with consumers willing to pay up to a 13% premium for sustainable products, but an average premium of 28% for sustainable products found in the U.S.
Jean-Charles van den Branden, Leader of Bain's Global Sustainability practice, and François Faelli, Global Head of Capabilities at Bain, commented on the findings, stating, 'Sustainability remains a priority. Consumers and consumers demand it. Risk and disruption make it essential.'
The report also reveals that companies are ramping up their sustainability efforts, with 10% of companies increasing their Science-Based Targets initiative (SBTi) ambitions, compared with only 4% scaling back. Two thirds of companies are on track to achieve their Scope 1 and Scope 2 emissions targets.
In conclusion, the report underscores the growing importance of sustainability in both the consumer and business sectors. As consumers and consumers demand it, and as risks and disruptions make it essential, businesses are increasingly aligning their operations with sustainable practices. This shift is not just a passing trend, but a fundamental change in the way businesses operate and consumers make choices.
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