The State of Supply Chain Sustainability Report offers unbiased insights into the current state of sustainability in global supply chains. Through anonymous surveys, executive interviews, and in-depth literature reviews, we analyze and share key findings on social and environmental sustainability. Our report provides actionable insights that organizations can use to enhance their sustainability efforts.

“This is a must-read for anyone in supply chain. Global supply chains are in a unique position to have a positive effect on society. Businesses and consumers alike are putting pressure on us to source and supply products to live up to their social and environmental standards. The State of Supply Chain Sustainability 2024 provides a thorough analysis of our current understanding along with valuable insights on how to improve our Scope 3 emissions accounting to have a greater impact on lowering our emissions. CSCMP and MIT are excited to present you with the fifth edition of the most valuable tool that will help you benchmark your supply chain sustainability progress.”
—Mark Baxa
President and CEO, Council of Supply Chain Management Professionals (CSCMP)

 

Sustainability is reshaping how companies operate worldwide. In 2015, the United Nations introduced 17 Sustainable Development Goals (SDGs), with 191 countries pledging to meet them by 2030. Many nations have implemented regulations requiring organizations to report on their sustainability progress and emissions, holding them accountable for meeting these global targets. However, the understanding of supply chain sustainability and its organizational impact remains limited.

The State of Supply Chain Sustainability (SSCS) report aims to fill this gap by providing annual insights into the evolution of sustainability within supply chains. Through a data-driven, three-pronged analytical approach, this report offers an unbiased view of both environmental and social sustainability trends in the supply chain sector.

Key Takeaways from the SSCS Report

  • Rapid Change & Instability: The world has faced significant upheavals in recent years. This report analyzes how major crises, such as the COVID-19 pandemic, have impacted sustainable practices across different organizations, with varied effects depending on company size.

  • Financial Backing for Sustainability Goals: Despite ambitious sustainability targets, many organizations fail to financially support their objectives, leading to misalignment between stated goals and actual capabilities.

  • Sources of Pressure: External pressures from stakeholders, governments, and consumers are key drivers for companies to adopt sustainable practices. The report identifies and explores these forces.

  • Scope 3 Emissions Challenge: Scope 3 emissions, which encompass indirect emissions from a company’s value chain, make up about 75% of a company’s total emissions. Tracking these emissions remains difficult due to complex supplier relationships. The report highlights the challenges of current methods, such as the Spend-Based approach, which links emissions to economic activity but can disincentivize sustainability if it leads to higher costs.

SSCS’s Focus on Scope 3 Emissions

The report details the MIT Sustainable Supply Chain Lab’s ongoing efforts to improve the measurement of Scope 3 emissions, an essential area for future sustainability improvements. With upcoming regulations in the European Union and California requiring companies to report Scope 3 emissions, the urgency for accurate tracking and reporting has never been greater.

Looking Forward

The State of Supply Chain Sustainability report will continue to evolve, providing not only impartial findings but also actionable recommendations for companies to enhance their sustainability efforts. The focus will increasingly include:

  • Case studies on successful sustainability initiatives
  • Innovations in circular supply chains, sustainable packaging, and carbon accounting
  • Strong emphasis on addressing Scope 3 emissions

While progress has been made, much work remains to ensure the supply chain sector fully embraces sustainability in a meaningful way.