Sustainability in supply chains still matters

Even amid economic uncertainty, regulatory shifts, and geopolitical tension, corporate commitment to sustainability remains strong.

According to the 2025 State of Supply Chain Sustainability Report by MIT’s Sustainable Supply Chain Lab and the Council of Supply Chain Management Professionals, 85% of companies are maintaining or increasing their sustainability efforts.

The findings are based on responses from 1,203 professionals across 97 countries, providing a global snapshot of how organizations are embedding sustainability into their supply chains and where key challenges persist.

For organizations serious about translating sustainability goals into measurable results, strengthening supply chain visibility and metrics is the next frontier.

5 Key Takeaways

#1 Execution gap

Many companies continue to struggle with translating sustainability goals into measurable results. The study found that publicly stated targets make a difference—companies with clear goals are 74% more likely to invest in high-impact initiatives that move the needle.

#2 Measurement matters

A surprising number of firms, particularly in North America, still rely on spreadsheets to track sustainability performance. 50 percent of North American firms are still using spreadsheets to tabulate emissions data instead of life cycle assessment software, compared to 32 percent of European firms. Strengthening data systems and life cycle assessment tools is essential to closing the gap between ambition and action.

#3 Regional drivers differ

Approaches to sustainability vary by region. In Europe, action is primarily regulation-driven, with policies such as the Corporate Sustainability Reporting Directive (CSRD) shaping corporate priorities. In North America, investor pressure and leadership priorities are the main motivators, rather than regulatory mandates.

#4 Scope 3 emissions

Scope 3 may account for roughly 75 percent of total firm emissions. Managing Scope 3 emissions remains both the biggest challenge and greatest opportunity. Leading companies are advancing through digital traceability, standardized accounting, and stronger supplier collaboration—key enablers of transparency and measurable progress.

#5 Freight decarbonization

Freight transport continues to be a major source of supply chain emissions. Companies are adopting a phased approach:

• Biofuels as a near-term solution

• Battery-electric vehicles for urban and regional transport

• Hydrogen for long-haul operations in the long run

While infrastructure and upfront costs remain hurdles, smarter logistics and route optimization offer immediate opportunities for impact.

Conclusion

The 2025 report makes one thing clear: companies are committed to sustainable supply chains—but commitment alone isn’t enough. To achieve real progress, organizations must strengthen measurement frameworks, invest in traceability, and ensure sustainability is fully integrated into daily operations.

As Josué Velázquez Martínez, research scientist and director of the MIT Sustainable Supply Chain Lab, reminds us:

In 2025 and beyond, the companies that measure best will lead the way in building resilient, sustainable supply chains. I help organizations close this gap—translating sustainability commitments into measurable impact through trusted data, processes and implementation.

Read the full report: MIT Sustainable Supply Chain Lab – 2025 State of Supply Chain Sustainability