State of Supply Chain Sustainability 2022
Figures 11 and 12 highlight where investments
were different across the Global North and
South, showing almost precisely the opposite
pattern. In this case, the dimensions that
were not significant when comparing goals
are significant when comparing investment.
These include water conservation, supply chain
circularity, natural resource conservation,
human rights protection, and supplier DEI. And
in each of these cases, the mean score from
respondents representing firms headquartered
in the Global South is higher.
We can infer from our own data only a bit about
what accounts for the differences discovered
here. First, recall from Figure 4 that firm size is
an important factor in commitment to supply
chain sustainability, and average firm size tends
to differ by region. For instance, 63% of Latin
American respondents came from small firms.
Notably, however, our responses from Asia and
Africa show firm sizes more similar to those
in Europe and North America, but goals and
investments more aligned with those of Latin
America & the Caribbean. Second, although
we did not observe much difference in Latin
American & Caribbean respondents' rankings
of governmental pressure compared to the rest
of the world (see Appendix C), our executive
interviews did yield some insights. Said one
Spanish-language interviewee, "From the point
of view of Latin American markets, consumers are
less demanding than in other developed economies."
Other explanations are possible, but not
traceable with our data. These possible
explanations include (1) the relative supply
chain positions (upstream versus downstream)
of firms in the Global North compared to those in
the Global South, (2) the legacy of international
development efforts that international relations
scholars observe, similarly divides the world
between the Global North and Global South
along the Brandt Line; or (3) other hypotheses
that we hope that our documentation of this
phenomenon inspires.
Ultimately, the differences observed here seem
to further support the motivating premise of this
research: that supply chain sustainability means
many different things to different people. In light
of that, we would advise supply chain mangers,
who frequently work across international
borders with both vendors and customers, to
be aware of where local prioritizations and
investments might differ from their own.
Climate change
Energy
200
150
Count
100
NORTH
50
www
3.1
Water
Circularity
Natural resources
3.3
3.2
0
Minor Mod High V-High
Minor Mod High V-High
Minor Mod High V-High
Minor Mod High V-High
Minor Mod High V-High
200
3.5
3.6
3.5
150
Count
100
SOUTH
50
الشرط
0
Minor Mod High V-High
Minor Mod High V-High
Minor Mod High V-High
Minor Mod High V-High
Minor Mod High V-High
Figure 11: Environmental SCS investments in the Global North and Global South (n = 800)
Supplier DEI
Fair pay & fair trade
Employee welfare
Human rights
Local impact
200
3
3.5
3.3
150
Count
100
NORTH
50
Count
200
150
100
SOUTH
50
Minor Mod High V-High
Minor Mod High V-High
Minor Mod High V-High
Minor Mod High V-High
Minor Mod High V-High
3.7
3.5
Minor Mod High V-High
Minor Mod High V-High
Minor Mod High V-High
Minor Mod High V-High
Minor Mod High V-High
Figure 12: Social SCS investments in the Global North and Global South (n = 800)
State of Supply Chain Sustainability 2022 | Changes Over Geography | sscs.mit.edu 11View entire presentation