While many countries and businesses around the world are debating the merits of climate change policies, and taking measured approaches to implementing green best practices, others haven’t even approached the table. Failing to apply and comply with green supply chain best practices can stress economic growth and recovery, a reality that is unfolding in South Africa.
More than 40 percent of surveyed companies in South Africa are not implementing environmentally sustainable business strategies – potentially jeopardizing their own long-term sustainability, notes a recent study exploring cross-industry sustainability efforts.
The Supply Chain Intelligence Report (SCIR) 2009, conducted by Terranova Research, an England-based market research company, surveyed more than 200 senior company officials across all major industries in South Africa.
Terranova’s research reports that 41.3 percent of participating companies have no plans to incorporate metrics that measure their impact on the environment. The key performance indicators (KPIs) listed in the survey include energy consumption and carbon emissions from supply chain operations; water consumption from manufacturing operations; infrastructure simplification; and reverse logistics.
Green non-compliance hampers the country’s competitiveness on a global scale, the study suggests. South African companies manufacturing products for export will find it increasingly difficult to escape international pressure – particularly from the United States and Europe – to monitor and report on their operations’ environmental impact.
“The unwillingness of more than 40 percent of South African companies taking part in this survey to adopt new and important environmental KPIs is alarming, particularly in light of the country’s precarious energy situation,” observes Graham Terry, head of the Office of the Executive President at the South African Institute of Chartered Accountants.
South African companies that want to get ahead of the competition and position themselves for long-term growth urgently need to start thinking green and developing sustainable approaches to sourcing and supply chain management, adds Terry.
“The competitive realities of the current economic environment demand that companies proactively manage new customer needs and expectations, as well as increasing environmental regulations,” he notes.