The impact of sustainability efforts in the private brands sector may be bigger than previously realized. The adoption of sustainable practices by brands and retailers is responsible for about 20% of a businesses’ financial results, according to a new study by Supply Pilot.

This research coincides with the rebrand of Solutions for Retail Brands (S4RB) to Supply Pilot, a supplier collaboration platform and consultancy aimed at helping brands and retailers become more sustainable.

The study’s findings – which have been published and further explained in the company’s latest white paper titled “From Intention to Action” – mark the first time that sustainability operational performance has been so deeply measured to assess business performance for retailers and brands.

Data captured by the supply chain data specialist shows that sustainability is responsible for approximately 20% of a business’ financial results, with supplier collaboration the most effective sustainable practice that businesses can undertake, when compared against practices such as product design, process design and customer collaboration. Supplier collaboration emphasizes the need for brands and retailers to proactively engage with their suppliers, share data, establish mutual understandings of responsibility around sustainability requirements, and develop products that support brand sustainability goals.

The study’s findings do not support the prevailing view that there is a trade-off between environmental performance and financial performance. As such, there should be less hesitation and more commitment to sustainability adoption at a board level within retail.

The study’s results also reveal that ‘moral motivation’ is the biggest driver for companies looking to be more sustainable, with 87% of brands pointing to ‘environmental concern’ and 88% governed by ‘doing the right thing’.

Further insights unpacked from the white paper reveal:

• There is more opportunity to educate leaders on the positive financial impact of sustainable practices. As a result, there should be less hesitation and more commitment to sustainable business practices at a board level.
• Sustainability can be a competitive advantage that drives organizational performance.
• A data-driven, people-centric approach to sustainability will have the most success as environmental and social responsibility become increasingly important over the next decade.

Butcher said, “The rebrand to Supply Pilot is the start of an exciting new era for us. We wanted our new name and identity to reflect our ambition to help brands more easily and quickly progress on their sustainability journeys. This rebrand is about making supplier collaboration accessible to more businesses by providing a simple framework to turn intention into action, and a platform that facilitates the scale of the modern supply chain.”