Just as I thought. ‘The real driver of behavior still remains cost, which will always trump environmental impact. This according to the report on a survey by AlixPartners, a global business advisory firm. Green is good. We all know it. The benefit at the retail end of the supply chain is a given. Being able to tout an ‘eco-friendly’ stance is a competitive advantage. Furthermore, corporate leaders understand that ignoring sustainability is not an option. To be sure, stepped up government regulation is a driver, but not embracing their perceived ‘environmental responsibility’ will eventually catch up to companies that are slow to reduce their environmental impact. But make no mistake, unless the benefit can be traced to the bottom line, green initiatives will not stand alone.
On the flip side, there’s good news: What’s good for the environment is more often than not good for P&L. Don’t try to tell C-suite executives that using less fuel and reducing excess packaging is simply good for the environment. Reducing waste in the supply chain means reducing cost in the supply chain. And that’s good for most important metric of all: the bottom line.
For additional insights about the AlixPartners, you may appreciate this analysis by Noel Datko of Integracore.
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