Analyst Insight: Sustainable supply chains are a top priority for many organizations. Here are five signs that you are succeeding with your sustainability initiatives.

According to research from PDI Technologies, 80% of consumers describe themselves as somewhat or very concerned about how the products they buy impact the environment. In addition, 71% of those surveyed would pick the more sustainable version of a product when comparing two items of $10 or less.

With so many moving parts and partners, building a sustainable supply chain can take time. But the following signs can serve as clear indicators you’re on the right path.

You’ve prioritized environmentally responsible suppliers. One of the most important steps any organization can do to ensure the sustainability of its supply chain is to prioritize environmentally responsible suppliers. 

For example, in 2019, Target estimated that 96% of its greenhouse gas emissions were related to its supply chain. As part of an effort to reduce its greenhouse gas emissions by 30% by 2030, part of Target’s goal was to commit 80% of its suppliers to set science-based reduction targets on their Scope 1 and 2 emissions. 

Suppliers that emphasize sustainability in materials, manufacturing techniques, energy sources and other areas can have an outsized impact on the entire supply chain. As analysis by the Harvard Business Review notes, organizations that involve first-tier suppliers and lower-tier suppliers in their strategy will have the broadest impact. Successfully transitioning to ethical sourcing clearly delivers supply chain results.

You’ve implemented sustainability practices at your own facilities. While addressing Scope 3 emissions requires collaboration with, and buy-in from, your supply chain partners, you must also prioritize your own Scope 1 and 2 emissions. These are the greenhouse gas emissions from your own facilities and vehicles, as well as the emissions that result from the electricity and other energy sources you use for your facilities.

For most facilities, this requires an in-depth analysis of your processes and equipment. Even seemingly simple steps like upgrading to more energy-efficient equipment, machinery and lighting — and keeping these things properly maintained — can help reduce emissions. 

Of course, many facilities also reduce their emissions through actions such as installing solar panels. Initiatives like carbon capture and storage have also proven impactful at many high-emissions facilities.

While you can never fully control your partners’ sustainability efforts (even when trying to work with responsible suppliers), you can always make improvements to your own facility’s environmental impact.

You have solutions for addressing material waste. Waste is inevitable in every supply chain. But there is a significant difference between organizations that send their waste to a landfill and those that look for solutions to reuse or recycle waste materials.

For example, in a case study by CheckSammy, the Yellowstone National Park Lodges were left with over 30 shipping boxes of 600 to 800 pounds of retired textiles after the COVID-19 pandemic kept them from being donated. CheckSammy determined that mechanical recycling at its Sustainability Hubs would maximize CO2 savings. The partnership resulted in over 25,000 pounds of textiles getting shredded and repurposed for new products in 2024 alone, creating 20 metric tons of net CO2 savings.

The success of the partnership relies on a quick turnaround for picking up retired textiles, as well as an efficient system for sorting, separating and inventorying materials that can be used for recycling. 

You have clear environmental KPIs. Sustainability key performance indicators provide a sense of direction and purpose to your sustainability initiatives. They help you identify progress and ensure that you are on track to reach sustainability goals.

For example, your organization could have KPIs related to its use of water, such as how much water was consumed, how much was reused or how much was treated at your facility. Environmental KPIs can vary based on the needs of your organization, but they must be present for sustainable supply chain initiatives to have lasting power.

You have accountability systems in place. Sustainable supply chains rely on transparency and accountability from all involved. This naturally requires that your team have full visibility into supply chain operations, particularly emissions. Careful tracking of Scope 1 and 2 emissions, and achieving buy-in from partners to help you better track scope 3 emissions, is critical for understanding what you’ve achieved and where further improvements could be made.

Tracking and accountability for sustainability initiatives allow your team to measure the impact of specific adjustments, as well as identify further opportunities for improvement. Without measuring, you will have no way to determine if you are on track to meet your goals. Accountability systems also allow you to demonstrate to other stakeholders (such as eco-minded customers) that you are making meaningful progress in this area.

Achieving a sustainable supply chain is a worthy goal — but also one that requires continual management and refinement. As you and your partners continue to collaborate to find ways to make your supply chain more sustainable, you can further reduce your impact on the environment and become even more appealing to eco-minded consumers.