Sustainability in supply chains is still a firm-level priority: New Report

Most global corporations are maintaining or strengthening their sustainability efforts in supply chains despite economic uncertainty, according to a new report from the Massachusetts Institute of Technology (MIT).

The report, Sustainability Still Matters, shows that 85 percent of companies are continuing their sustainability practices at the same level as in recent years or are increasing them. The findings highlight a continued corporate commitment to environmental responsibility even in challenging times.

“What we found is strong evidence that sustainability still matters,” said Dr. Josué Velázquez Martínez, director of the MIT Sustainable Supply Chain Lab, which produced the report with the Council of Supply Chain Management Professionals. “There’s a strong willingness from companies in all parts of the world to do something about sustainability, even though many challenges remain.”

Now in its sixth edition, the annual survey gathered responses from 1,203 supply chain professionals in 97 countries. It focuses on three key issues: the impact of regulations, the management of “Scope 3” emissions, and the future of freight transportation.

Regulations and Regional Drivers

The report shows that sustainability drivers differ across regions.
In Europe, government policies such as the Corporate Sustainability Reporting Directive (CSRD), which requires companies to disclose environmental impacts, are the main motivators.
In North America, corporate leadership, investor expectations, and competition play a larger role.

“In Europe, the pressure primarily comes from regulation,” Velázquez Martínez said. “But in the U.S., it comes more from investors or competitors.”

Scope 3 Emissions Remain a Challenge

Many firms still struggle to measure Scope 3 emissions, the greenhouse gases generated throughout their value chains, including suppliers and product use.

While around 40 percent of firms track direct (Scope 1) and energy-related (Scope 2) emissions, far fewer measure Scope 3. These can account for up to 75 percent of total emissions, yet about 70 percent of companies say they lack enough supplier data.

“You get what you measure,” Velázquez Martínez noted. “If you measure poorly, you’re going to get poor decisions that won’t drive the reductions you expect.”

Transport and Efficiency

Transportation remains a major source of emissions. Companies are adopting biofuels, electric vehicles, and hydrogen technologies, though progress depends on infrastructure development.

“Transportation has made a lot of progress in general,” said Velázquez Martínez.

The report also finds that sustainability often aligns with cost efficiency. Lower fossil fuel use not only cuts emissions but also saves money.

“Along with new technologies, there is a need to make better use of existing infrastructure,” Velázquez Martínez added.

MIT researchers conclude that while global firms are moving in the right direction, better data and smarter metrics are essential. To make real progress, companies must measure accurately and manage accordingly.