A Global Survey Reveals Concerning Trends in Supply Chain Sustainability

The MIT Center for Transportation & Logistics and the Council of Supply Chain Management Professionals recently conducted a global survey that provides insight into supply chain sustainability at the moment. With over 2,300 respondents worldwide, the "State of Supply Chain Sustainability 2023" report presents a problematic story, indicating that 65% of firms surveyed do not have a net-zero carbon emissions goal. The report provides five key takeaways that underscore the challenges and opportunities in achieving sustainability goals within supply chains.

Commitment Amidst Crises:

    • Significant disruptions, such as the COVID-19 pandemic and Russia's invasion of Ukraine, surprisingly boosted organisational commitment to sustainability by 79% and 61%, respectively.

    • However, economic forecasts for 2023 have led to a decrease in commitment, highlighting the vulnerability of sustainability goals during periods of economic uncertainty.

Global Disparities in Sustainability Goals:

    • Companies in wealthier countries, particularly Europe and the United States, show higher adoption rates of net-zero carbon emissions goals.

    • Approximately 53% of European and 44% of American firms have adopted net-zero goals, compared to 36% in Asia and 22% in Latin America.

    • The report raises concerns about the localised adoption of net-zero goals and questions whether global ambitions can be achieved without broader participation.

Pressure Points for Sustainability:

    • Investors are the leading source of pressure for firms to improve supply chain sustainability.

    • Other pressure points include governments, international governing bodies, corporate buyers, company executives, end consumers, and current or prospective employees.

Audits and Codes of Conduct:

    • Supplier codes of conduct and supplier audits are the most widely used practices to manage supply chain sustainability, with 80% and 43% adoption rates, respectively.

    • Visibility solutions and environmental remediation technologies are less popular among respondents.

Net-Zero Goals and Preparedness:

    • Only 35% of survey respondents indicated that their firms have net-zero goals.

    • Among companies with net-zero goals, nearly half reported that they won't begin measuring or reducing Scope 3 emissions for five years or more.

    • Approximately half of respondents reported a net-zero deadline of 2040 or earlier, highlighting potential challenges in meeting these deadlines.

The findings emphasise the need for a concerted effort to enhance global supply chain sustainability, address disparities in adoption, and align commitments with measurable and achievable targets. As sustainability remains a critical aspect of modern business, stakeholders are urged to collaborate and innovate to meet the challenges of climate change and environmental impact.

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