Discuss the factors driving an increased focus on sustainability.
Answer: First, they can be divided into three distinct categories:
1. Reducing risk and improving the financial performance of the supply chain
2. Attracting customers who value sustainability
3. Making the world more sustainable
Most action has been observed primarily when a focus on sustainability reduces risk for the supply chain and improves financial performance. Much less success has been driven by customer demand or the desire to make the world more sustainable. It is interesting to note that there is significant opportunity even if supply chains only focus on the areas that reduce risk and improve financial performance. Customers to this point have not been willing to pay extra for sustainable products as a whole even though many customers are environmentally sensitive. As such, macro policies may be one of the best options for improving the sustainability of all supply chains.