Assessing the value of sustainability initiatives in business-to-business relationships

Abstract

Environmental sustainability initiatives have risen in popularity over recent decades. Companies are actively seeking to promote innovative practices to reduce environmental impact and attract the "green" shopper. The business-to-business (B2B) segment is no different, and many companies utilize proactive sustainability strategies. This thesis examines the important role that environmental sustainability plays within the B2B segment and makes recommendations on how to prioritize sustainability investments. RetailCo, a national provider of various material goods and services, provided data and support for analysis. Information was collected and analyzed from customer inquiries such as Requests for Proposals and Requests for Information. An online survey, constructed to determine customer sustainability priorities, was distributed to business customers. The results from both data sources were used to analyze customer preferences and priorities. Results were analyzed by industry type, company size, geographic region, and annual spend with RetailCo. Finally, interviews were conducted with select companies to compare survey results. Detailed analysis of all data sources shows that sustainable business customers are larger government or education organizations, and they appear to strongly favor electronics and paper product recycling initiatives. Although many companies show strong support for sustainability initiatives, price and quality continue to dominate purchasing decisions.