
Geopolitical realities, not least the evolving tariff picture, is one of the primary concerns for sustainability officers, says Laura Rainier, senior director analyst at Gartner.
As always, some organizations are progressing in their sustainability initiatives, while others are laggards struggling in this chaotic time when there are myriad challenges to supply chains, Rainier says. Due to increased uncertainties, some companies see sustainability as a longer-term goal. Others, however, see that sustainability might be a solution to some of their business hurdles. “For example,” says Rainier, “can they develop a circular model to mitigate the need to import more goods from other countries, mitigating exposure to tariffs?”
Working in tandem with the Association for Supply Chain Management, Gartner found supply chain employees were more likely to stay with employers who were committed to sustainability initiatives and who were engaged with their workers on such programs.
As it happens, it’s becoming more common to see companies employ a chief sustainability officer. However, the day-to-day work of carrying out policies adopted by the C-suite often fall to the head of supply chain.
Research revealed that policies in place often had decision guidance and key performance indicators that tracked not just sustainability employees but a broader set in planning, sourcing, making and delivering. “I think that's kind of the differentiator and how we're seeing sustainability continue to be important,” Rainier says. “It's a decision outcome rather than an individual role.”
Inertia is the biggest challenge to supply chain sustainability, she says. “The scale of change required is too big, so we do nothing. How can we break out of those patterns? External shocks like tariffs can help change our supply chain. When we make changes and decisions informed by these changes, if we embed sustainability into those decisions, we can actually build in sustainability from the start and design it in.”
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