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Sustainability is coming up in a lot of supply chain-related discussions this year, but most teams know the work goes well beyond a few ESG initiatives. Real progress requires sound sourcing decisions, steady supplier engagement and consistent operational discipline. These choices shape how well a supply chain reduces emissions, manages waste and flexes as conditions change.
None of this is easy, but companies as a whole seem to be staying the course with their sustainability initiatives this year. And they’re doing it even as government ESG focus weakens in some markets and other issues draw more attention.
In fact, a recent report from MIT’s Center for Transportation and Logistics says 85% of companies are maintaining or increasing their supply chain sustainability efforts, even with shifting policies and ongoing economic uncertainty. The survey reflects broad participation across regions, with European firms largely driven by regulation and North American firms more influenced by leadership and investor expectations.
This high participation level proves sustainability’s central role in supply chain management. “What we found is strong evidence that sustainability still matters,” says MIT Sustainable Chain Lab’s Josué Velázquez Martínez. “There are many things that remain to be done to accomplish those goals, but there’s a strong willingness from companies in all parts of the world to do something about sustainability.”
What Goes Into a Sustainable Supply Chain?
To understand the role of sustainability in a supply chain, it helps to look at the core elements that shape it. Most companies focus on three areas: environmental performance, social responsibility and stronger governance. Combined, these areas dictate how supply chain owners manage materials, suppliers and the movement of products across their global networks.
As those networks become increasingly complex and interconnected, the push to make them more sustainable continues in full force. “In recent years, businesses across industries have recognized that sustainability is no longer just a social responsibility but it’s a strategic necessity,” Nayana Ruke writes in “The Role of Sustainable Practices in Modern Supply Chain Management.” “Modern supply chain management is evolving to integrate sustainable practices that balance economic performance with environmental protection and social responsibility. This shift is transforming how companies operate, plan logistics, and build long-term business resilience.”
At a fundamental level, Ruke says sustainable supply chain management refers to the “adoption of eco-friendly and ethical practices at every stage from raw material sourcing to final product delivery.” Reducing waste, lowering carbon emissions, ensuring fair labor practices and promoting responsible resources are some of the core principles that fall under the “sustainability” umbrella.
“Rather than focusing solely on cost efficiency or speed, sustainable supply chains aim to create long-term value for businesses, society, and the planet,” Ruke explains, noting that this approach requires collaboration across suppliers, manufacturers, distributors and retailers alike. Without those collective contributions, broader goals like carbon footprint reduction, improved brand credibility and enhanced consumer trust may remain out of reach.
Pushing Measurable Improvements
Individual industries are also taking steps to manage their sustainability impact, including sectors with heavier carbon footprints. In air transport, for example, the International Air Transport Association (IATA) recently introduced its new Integrated Sustainability Program, a certification and assessment framework that helps airlines strengthen environmental management, sustainable procurement, social responsibility and overall ESG performance.
IATA says the program validates that an airline is managing its sustainability efforts at the highest level and in the broadest context, and gives stakeholders a clear view of its progress. Along with certification, the program includes training, consulting, assessments, guidance, and tools in four modules: environmental management, sustainable procurement, social responsibility & sustainability performance.
“The comprehensive ISP certification program validates that an airline is managing its sustainability efforts at the highest level and in the broadest context,” IATA’s Marie Owens Thomsen, said in a press release.
Electronics companies are also pushing measurable improvements on the sustainability front. Last month, global electronics system integrator SINBON reported a 28.8% cut in its Scope 1 and 2 emissions; completed its first biodiversity risk assessment under the TNFD framework; and increased renewable energy to 9.5% of total electricity use. According to the company, it also reached 3 MW of self-owned solar capacity, boosted R&D spending by 22% and tightened supplier oversight with a 100% signing rate for its supplier code of conduct.
"To empower our customers to achieve their ESG goals, it is crucial that SINBON—with the many industries we work with—lead in sustainability and responsibility,” Chairman Joseph Wang said in a press release. “These latest achievements demonstrate our commitment to empowering customers with sustainable sourcing.”
