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Sustainability gains priority among SMEs, but investment remains low

A DHL Express survey reveals that while sustainability is critical for SMEs, many hesitate to invest significantly. Challenges include securing internal and customer support.

Sustainability has emerged as a crucial factor for small and medium-sized enterprises (SMEs), playing a significant role in their long-term value and credibility. A new international survey by DHL Express sheds light on the growing importance of sustainability, particularly in the context of supply chain operations. The survey, which involved 5,000 SME decision-makers across 11 markets—ranging from the UK and France to China, India, and Mexico—examined the attitudes and challenges SMEs face as they incorporate sustainability into their business strategies. The findings highlight how sustainability is shaping the future of SMEs, providing insights on how they can navigate this evolving landscape to stay competitive and seize new opportunities.

The DHL Express survey reveals that sustainability is considered either “very important” or “extremely important” by at least two-thirds of SMEs across all sectors. The financial services and fashion sectors stand out, with 81% of respondents from each industry agreeing with this sentiment. However, despite recognising the significance of sustainability, many SMEs are hesitant to invest heavily in sustainable initiatives. The survey found that most businesses are only willing to allocate a modest 1-3% of their operating budget toward sustainable practices. Only 9% of SMEs are prepared to invest more than 5%, and 16% indicated they would not allocate any budget to sustainability efforts.

One of the key challenges identified in the survey is securing both internal and customer buy-in. While the global average for customers willing to pay more for sustainable shipping is relatively low at 23%, SMEs in India and China show much higher confidence, with 51% and 47%, respectively, believing their customers would be willing to pay extra for sustainable options. In Germany, however, 74% of SMEs report that gaining internal and customer support for sustainability goals remains a significant hurdle.

Despite these challenges, some industries are leading the way in sustainability efforts. The fashion sector, often criticised for its environmental impact, is proving to be one of the most committed to sustainable practices. A striking 81% of fashion SMEs regard sustainability as a priority, with 78% believing that offering sustainable delivery options could enhance their brand image. Similarly, the financial services sector shows strong commitment to sustainability, with 88% of SMEs in this industry willing to allocate their budget to sustainable practices. Furthermore, 47% of financial services SMEs believe that offering sustainable delivery options could lead to increased commercial success.

DHL Express has been at the forefront of supporting sustainability efforts in the logistics sector. The company continues to prioritise sustainability in its operations, aiming to reduce its annual greenhouse gas emissions to under 29 million metric tons by 2030, electrify 66% of its last-mile delivery vehicles, and increase the use of sustainable fuels to over 30%. Through its GoGreen Plus service, DHL Express also enables customers to reduce their Scope 3 emissions by using Sustainable Aviation Fuel (SAF) in its air cargo fleet. This service follows a “book and claim” approach, where the emissions savings are passed on to customers through certificates.

Sustainability is expected to be a transformative force across industries over the next decade. The comprehensive eBook developed by DHL Express aims to assist SMEs in taking actionable steps to enhance the sustainability of their logistics operations. With the logistics giant’s wide-reaching experience, it offers valuable tools, strategies, and insights to help SMEs overcome challenges and excel in their sustainability efforts. As the global leader in logistics, DHL Express continues to support businesses in their journey towards more sustainable practices, ensuring long-term growth and competitiveness in a rapidly changing market.