State of Supply Chain Sustainability 2022 slide image

State of Supply Chain Sustainability 2022

Changes Over Geography a Owing to both our new survey translations and a coordinated multilingual outreach effort, we were able to reach more of the world this year than ever before. Reaching more respondents from more countries afforded us enough responses from the regions of North America, Europe, Latin America & the Caribbean, Africa, and Asia to make viable statistical comparisons. Globally, the comparison of firms' sustainability goals with their investments revealed surprising and consistent geographical pattern. We compared the distribution of Likert scale responses from respondents representing firms headquartered in North America, Europe, Latin America & the Caribbean, Africa, and Asia for each of the 10 sustainability dimensions and each of the 10 pressure sources (see Appendix C). First, we looked for differences in responses from each of the five regions. We then compared regions against one another where global differences were observed. When global differences were detected, we tested again, but this time comparing the Global North (broadly speaking, North America and Europe) to the Global South; (Latin America & the Caribbean, Africa, and most of Asia).* In terms of supply chain sustainability goals and investments, the Global North versus Global South aggregation was a frequently statistically significant grouping. Below, Figures 9-12 show where we saw differences between the Global North and Global South. Colored bars indicate statistically different distributions, while the blue, annotated lines indicates the average score for those dimensions in the Global North and South, respectively. Figures 9 and 10 highlight where goals were significantly different across the the Global Noth and South. Respondents from firms headquartered in the Global North showed higher mean Likert scores among climate change, energy conservation, employee welfare and safety, and fair pay/fair trade, indicating a higher prioritization of these issues among firms headquartered in that part of the world. Climate change Energy Water Circularity Natural resources 200 3.8 4.0 150 Count 100 NORTH 50% 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 3.6 200 3.5 150 Count 100 SOUTH www 50 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 9: Environmental SCS goals in the Global North and Global South (n = 800) Employee welfare Human rights Local impact Supplier DEI Fair pay & fair trade 200 4.2 wwww 3.8 150 Count 100 NORTH ... 50 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 * The traditional definition of the Global North and Global South is based on the Brandt Line, developed by West German Chancellor Willy Brandt in 1980. In this definition based on GDP per capita, the world is divided roughly along a latitude of 30° north. The wealthier Global North includes the United States and Canada, Europe, the former Soviet Union, Japan, Australia, and New Zealand. The comparatively more disadvantaged Global South includes Latin America, Africa, the Middle East, Asia minus Japan, and Oceania minus Australia and New Zealand. This grouping has been used to highlight the very different standards of living and wealth between these two regions of the world. The terminology is similar to the global division between “developed” and “developing” countries or the “Third World", though use of this terminology has been declining in favor of the Global North and Global South. (For a more detailed explanation of this definition as well as the validity of the Brandt Line more than 40 years after it was first developed, see Nicholas Lees, “The Brandt Line after Forty Years: The More North-South Relations Change, the More They Stay the Same?," Review of International Studies 47, no. 1 (January 2021): 85–106). 200 3.9 3.4 150 Count 100 SOUTH 50 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 10: Social SCS goals in the Global North and Global South (n = 800) State of Supply Chain Sustainability 2022 | Changes Over Geography | sscs.mit.edu 10
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