State of Supply Chain Sustainability 2022 slide image

State of Supply Chain Sustainability 2022

INTRODUCTION This is an essential read for anyone in supply chain today. Supply chains worldwide are uniquely positioned to be an engine to impact our society positively. The choice of who we choose to do business with, where we do business, and what and how we deliver is essentially in the supply chain's control. Consumers and businesses alike need-and, in fact, demand-that products we source and deliver meet their environmental and social expectations. You will find in the State of Supply Chain Sustainability 2022 a most important, comprehensive global study that supports your ability to benchmark your company and SCS actions. -Mark Baxa, President and CEO, CSCMP The annual State of Supply Chain Sustainability report is a co- presentation of the MIT Center for Transportation & Logistics and the Council of Supply Management Professionals. This yearlong research effort includes a globally administered survey, semi- structured executive interviews, and a thorough review of the year's news and media documents related to global sustainability. Each year, the research team has collected and collated those disparate data points into this report, which we hope offers its readers a clear snapshot of the current state of supply chain sustainability worldwide. In 2019, the first year of data this report studied, we found widespread interest in a broad spectrum of environmental and social dimensions of sustainability among participating supply chain professionals. We also found that roughly half of respondents reported that they felt their firm was under pressure to improve its sustainability efforts, a finding that has been consistently replicated in subsequent installments of the State of Supply Chain Sustainability report.¹ In 2020-the first year where we could make year-over-year comparisons-we expected to find a lagging or decreased focus on supply chain sustainability efforts due to the Covid-19 pandemic. However, to our surprise, we found that global supply chain sustainability (SCS) efforts remained as strong as ever; a whopping 82% of respondents reported that their firms' commitment to supply chain sustainability had remained constant * See Figure 8 for a full listing of these supply chain sustainability dimensions. orincreased from 2019, even in the face ofthe pandemic-especially for larger firms. The notable changes we did observe had to do with who was exerting this pressure on firms' SCS efforts and how firms prioritized sustainability dimensions. From 2019 to 2020, we saw the most growth among social sustainability dimensions like employee welfare and safety; human rights protection; local community impact; and supplier diversity, equity, and inclusion. And as to who was exerting pressure on firms in these areas, the biggest increase in 2020 came from investors and governmental authorities.2 This year marks the third installment of the annual State of Supply Chain Sustainability report. We are very pleased that the report has collected data from a larger group and wider range of people each year. And this year, we were able to offer the survey in Spanish and Mandarin Chinese in addition to English, allowing for diverse, robust responses from all corners of the world. While in prior years we had collected data from respondents worldwide, these new translations allowed us to reach more people from more regions to enable us to conduct another layer of statistical analysis. This large undertaking would not be possible without our outstanding team of sponsors, students, and contributors (listed in Appendix A). We hope that readers find our results both interesting, and useful. If you do, there is a large team to thank. State of Supply Chain Sustainability 2022 | Introduction | sscs.mit.edu | 2
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