Sustainable sourcing is amongst the top priorities for chief sourcing officials, according to an industry-facing survey conducted by US consultancy McKinsey & Company. The survey reflects the perspectives of 64 senior figures from brands and manufacturers with a collated sourcing value of more than $100 bn. Findings highlight that greater transparency and access to digitised sourcing solutions are considered fundamental to this effort, as companies also express interest in considerably ramping the volumes at which they source sustainable alternatives.
McKinsey, with its future forecasting survey, has garnered feedback from 64 chief purchasing officers (CPOs) to assess what the interests of brands and manufacturers are as the industry transitions with a clearer picture of a more sustainable future. With all the talk of utilising more sustainable materials, processes and machines, the approach of sourcing executives remain instrumental in mitigating the long-term environmental impacts of a company, particularly for leading brands which produce at bulk and harness the greatest potential for minimising global warming.
As such, the CPOs outline their three most applicable answers throughout the survey, with collated results painting a picture representative of future transitions. When asked of their greatest priorities for action, a resounding majority of 56 out of the 64 insisted sustainability and transparency were of most focus. This, followed by 45 citing the digitisation of sourcing processes and related areas, whilst scores of 42 and 41 were registered for the categories ‘consolidation of supplier base’ and ‘end-to-end process efficiency’.
Respondents were also asked to identify three topics in sustainable apparel sourcing at the top of their agendas for the five years ahead. The integration of sustainable materials topped the leader board, as CPOs reference ambitions to make half of their sourcing amounts sustainable by 2025.
“Apparel companies are under increasing pressure to create transparency on their supply chains and to share that information with consumers—and eight in ten CPOs surveyed have ambitious plans to step up transparency,” McKinsey says. “Social and environmental sustainability is also taking on much greater importance in supplier relationships: two-thirds of CPOs surveyed said it would likely become a top factor in their supplier ratings by 2025.”
The report’s author insists it will take a shift in the tide to current sourcing practices if companies are to deliver and make tangible change. “Indeed, the industry lacks a common language on sustainable sourcing, let alone a shared set of standards. But the findings leave no doubt that sustainable sourcing at scale will be a must for apparel companies over the next five years—and that consumer demand for sustainable fashion is growing rapidly,” McKinsey concludes.
