We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Report: Companies are slowing climate initiatives due to rising costs

Report: Companies are slowing climate initiatives due to rising costs

CEOs say delayed investments, price hikes, and nearshoring are primary tactics for dealing with inflation and market uncertainty.

Screen Shot 2022-04-04 at 4.58.46 PM.png
April 4, 2022
Supply Chain Quarterly Staff
No Comments
Businesses are scaling back investments due to inflation, and supply chain decarbonization efforts are among the first efforts on the chopping block, according to a report from procurement and supply chain consulting firm Proxima, released March 30.

The firm surveyed 2,000 CEOs in the United States and the United Kingdom for its Supply Chain Barometer 2022, and found that the majority (91%) are experiencing inflationary conditions, with one in 20 saying their companies are seeing inflation above 10%. Nearly half said their businesses have raised prices as a result. Other tactics for dealing with the rising costs include nearshoring, delaying business investments, and reconfiguring products and services.

Sustainability investments are among the hardest-hit. The research found that 25% of businesses have had to delay their plans to decarbonize their supply chains due to inflation, and another 13% said inflation had changed their decarbonization plans altogether.

“Amid historic supply shortages and the highest inflation in decades, businesses are feeling the impact especially when it comes to their plans to decarbonize their supply chains,” according to Proxima’s Kent Mahoney, executive vice president, North America. “CEOs are working hard to adapt their plans to reduce carbon emissions, as well as calling on government to do more to help support their business.”

Other findings include:
  • 15% of CEOs said they had already acted to “nearshore” their supply chains, while another quarter (26%) said they are actively looking at nearshoring some or all of their supply chain.
  • Almost half (47%) of CEOs surveyed said their businesses had raised prices as a direct result of inflation. A “significant proportion” of leaders also said inflation was forcing them to reconfigure their products and services. Close to a third (32%) said they were delaying planned business investments.
  • 89% of CEOs said the government should be doing more to tackle inflation. Close to half (45%) said government leaders should be taking steps to cap energy prices for business, for example; a similar number said that the government should be actively intervening by sourcing certain goods.
The Proxima Supply Chain Barometer 2022 is based on a survey of 2,000 CEOs of U.S. and UK-based companies employing at least 50 people, conducted by OpinionMatters.
Logistics Strategy
KEYWORDS Proxima
  • Related Articles

    Business process, transaction costs are top change initiatives

    “State of Logistics Report” shows out-of-sync supply chains battling sharply rising costs

    Transportation report: Rising fuel prices will drive higher costs

Recent Articles by Supply Chain Quarterly Staff

Companies to grow investments in energy-transition solutions, emissions reduction

Cargo imports forecast to sink near three-year low in February

Air cargo demand slumped in 2022 after “extraordinary” levels in 2021

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Forecasts call for freight rate slumps in 2023

  • Projected U.S. recession in early 2023 will soften freight market

  • Inflation drops again as interest rate hikes hit home, NRF says

  • How to avoid the next crisis: A new approach to supply chain agility

  • New Jersey truck fleet says Freightliner tractors will deliver safety as well as freight

Featured Video

20221107korber large vs

Enhancing Customer Experience with Your Supply Chain Strategy

Viewer Contributed
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

FEATURED WHITE PAPERS

  • Guide to Pallet Rack Safety

  • 3PLs: Complete Orders Faster with Flexible Automation

  • A shipper's guide to navigating post-pandemic holiday freight

  • THE NEW WAY TO WAREHOUSE: 4 Innovations in Automation & Robotics to Boost Warehouse Productivity

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing