The State of Supply Chain Sustainability 2024 report showcases five years of global progress in supply chain sustainability. Still, it reveals significant gaps between corporate sustainability goals and the necessary investments.
The latest report illuminates how supply chain sustainability practices have developed over the past five years, assessing their global implementation and impact on industries, professionals, and the environment.
Released by the MIT Center for Transportation and Logistics (MIT CTL) and the Council of Supply Chain Management Professionals (CSCMP), the 2024 State of Supply Chain Sustainability report is based on four years of surveys gathering input from over 7,000 supply chain professionals across more than 80 countries.
“Over the past five years, global supply chains have encountered unprecedented challenges,” says Josué Velázquez Martínez, MIT CTL research scientist and lead investigator. “While progress has been made, many companies still struggle to align their sustainability goals with meaningful actions, particularly in addressing Scope 3 emissions.” Velázquez Martínez highlights the difficulty in measuring Scope 3 emissions, which represent the majority of a company’s carbon footprint, as a key obstacle. The inherent complexity of tracking emissions from indirect supply chain activities has disincentivized companies from investing in greener alternatives.
Key findings from the report include:
- Rising investor pressure: Over the last five years, investor demand for improved supply chain sustainability has increased by 25 percent, making it the fastest-growing driver of sustainability initiatives.
- Net-zero readiness: While 67 percent of firms surveyed lack a formal net-zero goal, those with such targets often struggle to meet them, especially when measuring and reducing Scope 3 emissions.
- Crisis response and sustainability: Companies respond differently to crises, such as the COVID-19 pandemic or economic disruptions, about their sustainability commitments.
- Challenges with Scope 3 emissions: Despite efforts, Scope 3 emissions (up to 75 percent of total corporate emissions) remain the most difficult to track and reduce due to complex supplier networks and inconsistent data sharing.
Mark Baxa, president and CEO of CSCMP, emphasizes the need for collaboration: “Both businesses and consumers are increasingly demanding that we meet social and environmental standards. The 2024 report offers critical insights on improving Scope 3 emissions tracking to lower overall emissions more effectively.”
The report also emphasizes the role of technological innovations such as machine learning, advanced analytics, and standardization in improving emissions tracking accuracy and enabling data-driven sustainability decisions.
Source: MIT
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