Sustainability Survey Results 2023
Sustainability is Shaping How U.S. SMEs Do Business
In recent years, sustainability has become a key component of business success. Rising stakeholder pressure to keep up with the expanding climate crisis and lightning-speed growth in clean tech has led to an increase in ESG (environmental, social, and governance) conversations amongst small and medium-sized enterprises (SMEs). CoupleSustaid with the Inflation Reduction Act passage, marking the largest investment in energy/climate programs in U.S. history, sustainability is more important than ever to SMEs nationwide.
To gain insight into the varying ways in which SMEs prioritize sustainability today, and their plans for the years to come, DHL Express surveyed its U.S. SME customers. Here are the key findings, compiled from the nearly 2,500 responses:
Recognition of sustainability’s importance is almost unanimous. 95% of all respondents think sustainability is important to their business, with almost half of all respondents (48%) believing it’s extremely important. This further proves how sustainability trends remain top of mind for businesses, no matter their size. Working with sustainable partners is also important to SMEs; 74% said working with a partner that prioritizes sustainability is important to their business, with 29% noting it’s extremely important.
It’s all about the investment. When asked about the biggest challenge behind achieving sustainable goals, 42% of respondents shared that the overall investment is the primary obstacle. On the other hand, 30% of respondents believe getting customer buy-in is the biggest challenge, with only 31% saying their customers are willing to pay more for sustainable products and shipping. While sustainability is important to almost every respondent, nearly half (47%) are willing to invest only 1-3% of their operating budget into sustainability practices, and 26% are not willing to invest anything. Only 11% said they’d invest more than 5% of their operating budget in sustainability practices. However, market research indicates that businesses can increase brand loyalty by highlighting an effective commitment to environmental sustainability, and trends show that consumers have an increasing interest in environmentally-friendly products and services.
Reducing waste and sustainable sourcing are top of mind. Almost half of the respondents (46%) said reducing waste is their businesses’ biggest sustainability priority. Sustainable sourcing is the next most important priority at 23%. For SMEs, waste reduction may include increased use of recyclable materials, less packaging across product lines, paperless file organization and more. Additionally, the transportation of goods worldwide is responsible for a large portion of CO2 emissions generated by e-commerce, and this can be attributed to the consumers' ever-increasing demand for convenience. To address this demand for sustainable sourcing, DHL Express recently launched a dedicated solution to help businesses reduce the carbon emissions associated with their shipments through the use of Sustainable Aviation Fuel - a biofuel that is produced from renewable sources such as vegetable oils, animal fats, waste products, and agricultural crops. SAF is specifically designed to be used as a substitute for traditional jet fuel and can reduce greenhouse gas emissions by up to 80% compared to fossil fuels.
Some SMEs feel lost when it comes to sustainability. While the majority of respondents think sustainability is important to their business, 14% said they don’t know where to start when it comes to sustainable goals. Additionally, 28% said they have no clue if their customers are willing to pay more for sustainable products and shipping. Clearly, many SMEs would benefit from customized guidance and resources to effectively implement sustainable goals and services.
Overall, the survey findings suggest that while business owners can often appreciate the value of sustainability, they can’t always justify the cost of implementation. That said, they are continuing to navigate the sustainability space as they only begin to understand its value. Working with an experienced logistics partner like DHL can help these SMEs overcome and seamlessly implement the sustainability challenges outlined in the survey. See below for the full survey results. Follow us on Facebook and Instagram for timely information and updates.
