Analyst Insight: The supply chain is a primary driver of carbon emissions, and analysts agree that the supply chain is pivotal to achieving real environmental progress. In 2023, more and more companies no longer accept aspirations toward sustainability — they want authentic achievement of sustainability initiatives, and data is the key to demonstrating progress.
Attention to the impact that the supply chain industry has on the environment isn’t new. But with increasing regulations and growing customer preference for working with sustainability-minded organizations, there’s a call to prove that environmental initiatives are being achieved. In other words, it’s not enough anymore to talk about improving the planet — both industry and customers want action.
A 2023 Gartner study on the future of supply chain found that more than half (54%) of customers will do business only with companies that practice environmental and social sustainability. The study also revealed that 67% of chief supply chain officers (CSCOs) at companies are accountable for environmental and social sustainability key performance indicators (KPIs). In addition, the Gartner study found that authentic fulfillment of ESG commitments was among the top priorities at supply chain organizations.