Why sustainable supply chains are the key to survival in 2025

Sustainable supply chains are a must-have for any business navigating the current economic and environmental challenges.

Consumer demand is constantly changing, and shoppers want greener products and stricter global regulations. This means companies must rethink how they produce and deliver goods. 

But it’s not just about saving the planet. It’s also about building resilience and trust in your brand, while turning a profit. 

First, let’s define what sustainable supply chains really are.

What is a sustainable supply chain?

In the simplest terms: Sustainable supply chains minimize environmental impact while promoting social responsibility. 

But it’s a complex process that spans every stage of production – from sourcing raw materials and manufacturing, to delivery the goods but also recycling products at the end of their lifecycle.

In 2015, the United Nations outlined 17 Sustainable Development Goals (SDGs) to guide global supply chains. 

These goals hone in on issues like climate change, gender equality, and education. It pushes companies to look beyond profits and consider the broader impact of their operations.

Why sustainable supply chains matter

So, why should you care about sustainable supply chains? 

Well, beyond being good for the planet, it will also keep your clients happy. And it could open new markets for your business. 

Let’s look at the three biggest reasons why sustainable supply chains should matter to you.

1. Consumers want it

According to PwC’s 2024 Voice of the Consumer Survey, 85% of consumers experience climate change disruptions in their daily lives. 

In addition, 80% are willing to pay more for sustainable products. Even amid inflation, shoppers say want to prioritize eco-friendly goods, and they are willing to spend an average of 9.7% extra for it.

2. It’s good for your business

It’s a myth that sustainability is costly. It can actually boost your profits. 

How? Efficient use of resources reduces waste and cuts costs in the long run. 

Beyond that, sustainable businesses can also attract even more eco-conscious customers, opening up new markets and driving long-term loyalty.

BUT! Beware of greenwashing. 

Pro tip: Six ‘accidental’ greenwashing traps to avoid in logistics

3. The planet needs it

Sustainability also directly addresses pressing issues like climate change, resource depletion, and biodiversity loss. 

By reducing carbon emissions and optimizing resource use, companies contribute to global goals and reduce their environmental footprint.

Read more about carbon accounting and its benefits here. 

The challenges of going green

While the benefits are clear, we’d be remiss not to mention that transitioning to a sustainable supply chain isn’t without challenges.

These include: 

• High upfront costs: Investing in green technology and sustainable materials can be expensive at the start, particularly for smaller businesses.

• Lack of visibility: Complex global networks make it hard to track sustainability across all suppliers.

• Balancing speed and sustainability: Local sourcing and eco-friendly materials may slow production, conflicting with customer demand for fast delivery.

• Data collection: Gathering accurate sustainability metrics from suppliers is a daunting task.

Despite the hurdles, both consumers and regulators are prioritizing sustainability, which means businesses must join the party if they want to meet stricter regulations, avoid brand damage, and stay competitive. 

As PwC’s Sabine Durand-Hayes notes, the key lies in striking a balance between affordability and environmental impact. 

Companies that get it right will not only survive but thrive in the years to come.

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