Asia-Pacific SMEs adopting more sustainable supply chain practices
FedEx said it has been investing in technologies and infrastructure that reduce environmental impact such as the transition to electric vehicles for last-mile deliveries. Photo from FedEx
  • Small and medium enterprises in the Asia Pacific region are adopting more sustainable supply chain practices as consumers become more discerning and choose environment-friendly suppliers, according to a survey by FedEx
  • The survey indicated that 80% of APAC SMEs consider environmental issues, with sustainability now playing a bigger role in logistics decisions
  • 84% of APAC consumers pushing businesses to develop eco-friendly online shopping options
  • Environmental responsibility is a growing differentiator that influences consumers’ purchase decisions.
  • 40% of those surveyed said they are willing to pay more for sustainable options such as in packaging

Small and medium enterprises (SMEs) in the Asia Pacific region are adopting more sustainable supply chain practices as consumers become more discerning and choose environment-friendly suppliers, according to a survey by Federal Express Corporation (FedEx).

The survey, with results and insights contained in the Asia-Europe Trade Report, indicated that 80% of APAC SMEs consider environmental issues, with sustainability now playing a bigger role in logistics decisions.

“Southeast Asian markets are leading this trend, with over 55% of SMEs in Malaysia and Indonesia prioritizing sustainability in their supply chain choices. This highlights rising awareness and action on environmental issues among businesses and consumers in the region,” the global transport company said in a news release.

In the Philippines, “businesses are turning environmental stewardship into a strategic advantage in international markets,” said Maribeth Espinosa, managing director, FedEx Philippines.

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The adoption of green practices is in large part driven by demand from consumers.

The FedEx survey showed 84% of APAC consumers pushing businesses to develop eco-friendly online shopping options, and environmental responsibility is a growing differentiator that influences purchase decisions.

Key findings of the survey include the following:

  • 81% of APAC consumers prefer companies that appear to operate more sustainably compared to competitors offering similar products without the same visible operational integrations of sustainability;
  • Product integrity and competitive pricing remain key preferences for online shoppers, but nearly four in ten APAC consumers are willing to pay premium prices for sustainable packaging.

“We are seeing sustainability shifting from a compliance checkbox to a key driver of growth, resilience, and differentiation in global commerce,” said Salil Chari, FedEx Asia Pacific regional president.

The survey was conducted by Milieu Insight in September 2025 across 13 Asia Pacific markets including Australia, New Zealand, China, Hong Kong SAR, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam. The survey gathered insights from 850 Asia Pacific consumers and 850 SMEs who actively trade with Europe.

“At FedEx, we are committed to supporting this shift, aiming for carbon-neutral operations globally by 2040. We are innovating our services, optimizing our network, and providing smarter digital tools to help businesses turn sustainability ambitions into action, enabling lower-emission shipping decisions that strengthen competitiveness and can reduce environmental impact,” Chari said.

In line with the growing demand for sustainable logistics, FedEx said it has been investing in technologies and infrastructure that reduce environmental impact while boosting operational efficiency.

These include the AI-powered Stops Sequencing tool, which optimizes delivery routes in real time based on package volume and customer specifications; use of sustainable aviation fuel in select airports in the United States; and transition to electric vehicles for last-mile deliveries.

READ: FedEx beefs up Asia Pacific customer support amid tariff, trade shifts

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