Indians want faster yet sustainable delivery of their goods: FedEx report

• More Indian consumers prioritised sustainability than those in Taiwan, Hong Kong, Malaysia, who conversely were more focused on delivery lead time.
  
• Eight out of ten consumers in India prefer to buy from companies with an effective environmental, social and governance (ESG) strategy in place.
  
• Increase in the use of electric vehicles for transportation is one way of reducing carbon emissions and reducing traffic congestion, the report suggested.

The awareness towards sustainability and working for net zero emission is gradually gaining momentum not only among businesses but also consumers. In fact, seven out of ten people in India want to receive their goods not only faster but also in a more sustainable manner, says a report by FedEx Express, a global transportation company for deliveries.

According to the What’s Next in E-Commerce survey report, more Indian consumers prioritised sustainability than those in Taiwan, Hong Kong, Malaysia, who conversely were more focused on delivery lead time.

Furthermore, eight out of ten consumers in India prefer to buy from companies with an effective environmental, social and governance (ESG) strategy – but only 38% of the surveyed SMEs actually have ESG goals.

“Sustainability is no longer an optional extra for SMEs interested in expanding their e-commerce businesses. Consumers increasingly see it as an essential and non-negotiable part of their decision-making process,” said Kawal Preet, president of Asia Pacific, Middle East & Africa (AMEA) at FedEx Express.

The survey was conducted among SMEs and consumers in India, and 10 other markets in the Asia Pacific, Middle East and Africa region (AMEA) in July 2022.

However, 74% of the surveyed companies either fear the associated costs, or are unconvinced that any investment in the area of sustainability will produce effective returns.

“Over half of SMEs are, in fact, in the process of developing an ESG policy right now – they are strongly recommended to finalize this process as quickly as possible,” the report said.

“Today, consumer consciousness towards the environment exerts a stronger influence on the way they perceive a brand, making it imperative for businesses to embrace an effective ESG strategy. Working with sustainability-focused partners, including collaborating with the right logistics provider, will go a long way for SMEs in India to play their part in limiting the impact of climate change,” said Kami Viswanathan, senior vice president of FedEx Express Middle East, Indian subcontinent and Africa operations.

Over 90% of the consumers were even ready to pay a premium for products that have proven to be positive to the environment.

Increased use of electric vehicles for transportation is one way of reducing carbon emissions and reducing traffic congestion, the report suggested.

“More than 80% of the total greenhouse gas emissions made by a typical consumer-facing enterprise emanate from outside their internal operations, largely coming from manufacturing and elsewhere in their supply chains. As connectors in the chain, logistics providers have a role to play in helping to lower the possible impact on the planet to help align to consumer expectations,” the report added.

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