The holiday shopping season is a make-or-break moment for businesses, but it’s also a time when sustainability efforts face significant challenges. This year, the stakes are even higher due to a shortened shopping and shipping window — Thanksgiving fell later in November — as well as rising consumer and regulatory expectations. Businesses must navigate these pressures while ensuring their supply chains remain efficient and sustainable.

Holiday activities already contribute significantly to carbon emissions, with increased consumption, travel and festive decorations adding up to approximately 650 kg of CO₂ emissions per person, according to the Stockholm Environment Institute (SEI). At the same time, consumer expectations are evolving. A Project 44 report reveals that 65% of shoppers prefer brands committed to sustainability, yet 58% are unwilling to tolerate late deliveries.

This puts businesses in a difficult position: balancing the demand for fast, reliable shipping with the imperative to reduce environmental impact. Meanwhile, the National Retail Federation projects record holiday spending of $902 per person, further amplifying supply chain activity and its associated emissions.

Amid these challenges, it’s easy for businesses to deprioritize sustainability. But doing so risks not only regulatory penalties and reputational harm but also missed growth opportunities. Supply chains represent 70% of a company’s operating costs, according to EY, and 95% of supply chain executives report that their CEO recognizes its impact on financial performance.

To navigate the holiday season successfully while maintaining sustainability commitments, businesses must take a proactive approach to mitigate risks and adapt to shifting demands. Key steps include:

Mitigate ESG risks with data and transparency. Building resilient supply chains starts with identifying vulnerabilities. Evaluate suppliers based on financial stability, working conditions, decarbonization efforts, and compliance with anti-bribery and cybersecurity standards. By creating detailed environmental, social and governance (ESG) risk profiles for suppliers, businesses can address challenges before they escalate.

Deploy technology to enhance visibility. Data-driven tools powered by artificial intelligence and machine learning can provide unprecedented insights into supply chain operations. These technologies allow businesses to optimize procurement, predict disruptions, and align with sustainability goals, all while improving efficiency and reducing costs.

Collaborate with experts and partners. Supply chain sustainability is a complex undertaking. By partnering with experts and building a global network of vetted suppliers, businesses can manage regulatory compliance, reduce carbon footprints and enhance transparency across supply chain functions.

The urgency for sustainable supply chains extends well beyond the holiday season. Stricter regulations, such as the Corporate Sustainability Reporting Directive (CSRD) and the EU Deforestation Regulation (EUDR), are reshaping how companies address environmental and human rights issues.

Under the CSRD, companies face public disclosure requirements, potential fines and reputational risks for non-compliance. Similarly, the EUDR mandates that companies trace and verify the origin of their products to ensure they are deforestation-free. Starting in 2026, exports of carbon-intensive products to the EU will also carry a cost under new carbon border regulations (CBAM).

Businesses that act now to integrate sustainability into their supply chains will be better positioned to meet these challenges head-on. Futureproofing involves more than compliance — it’s about building a supply chain that is resilient, efficient, and aligned with evolving consumer and regulatory expectations.

The fast pace of today’s global markets demands that supply chain teams rethink their strategies. By proactively mitigating risks, embracing technology, and fostering partnerships, businesses can navigate holiday pressures while staying true to their sustainability goals.

Sustainability isn’t a seasonal initiative, it’s a long-term commitment that drives resilience, compliance, and competitive advantage. As we approach 2025, businesses that integrate sustainability into their supply chain operations will not only meet evolving demands, but also position themselves as trusted and future-ready leaders in their industries.

Simon Jaehnig is co-founder and chief revenue officer with IntegrityNext.