ECOVADIS AND THE SUSTAINABLE SUPPLY CHAIN
ent procurement variables
that are very , very high risk .”
Adopting sustainable procurement practices varies not just across industries , but within the same sectors . Among those Thaler cites as being the most progressive are FMCG , retail , pharmaceuticals and telecoms . The laggards include extractive industries , aerospace and defence , oil and gas .
“ Generally , industries that are more exposed to consumers will be first movers and then it will cascade down the value chain ,” says Thaler .
The EcoVadis study shows leaders in sustainable procurement have increased revenue , but the jury is still out as to whether that reflects simply being better run companies or whether such practices do bolster the top line .
“ What nobody has been able to demonstrate so far is whether it ’ s correlation or causality ,” adds Thaler . “ Are they investing more in sustainability because they are more profitable companies or are they more profitable companies because of their investment in long-term shareholder value that sustainable procurement represents ?”
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