Supply chain leaders prioritise sustainability, survey finds

Blue Yonder has published survey findings showing that 66% of supply chain leaders are actively working to reduce their supply chain's impact. The research covered 678 senior supply chain professionals at large enterprises with annual revenue above $500 million.

The findings suggest a broad effort to address sustainability through day-to-day operations rather than standalone environmental programmes. Among large enterprises, 47% have dedicated sustainability teams, while 56% of respondents said supply chain operators are responsible for helping to address issues such as inflation and climate change.

At the same time, confidence remains limited. Only one in five supply chain leaders said they were confident of achieving their sustainability objectives, pointing to a gap between intent and execution.

Priority shift

The survey suggests sustainability remains part of corporate planning, but is not always treated as a top-line strategic priority. Just 12% of supply chain leaders ranked it among their top three strategic priorities, down from 24% a year earlier.

That shift comes as companies face other pressures. Economic challenges such as labour costs and inflation were cited by 68% of leaders as leading concerns, indicating that businesses are weighing environmental targets against immediate operational and financial demands.

Many respondents linked progress on sustainability to better information and planning. Some 26% said data and traceability were the main actions needed to advance sustainability efforts, while 33% identified forecasting technology as an opportunity to support those goals.

These figures suggest supply chain teams increasingly view sustainability through the lens of process improvement. Better forecasting, stronger visibility and clearer data flows can reduce waste, support inventory decisions and improve transport planning, even if companies do not frame those steps primarily as environmental measures.

"Sustainability remains a priority, even in a year marked by immediate business risks like tariffs, disruption and inflation," said Saskia van Gendt, chief sustainability officer at Blue Yonder.

"Right now, efforts are primarily focused on improving efficiency and productivity and making faster, better decisions, which can translate into less waste, more sustainable operations and cost savings. Sustainability is no longer a discrete objective, but a strategic element of mature, modern business plans."

AI perception

The survey also examined how supply chain leaders view artificial intelligence. Respondents were far more likely to associate AI with operational improvements than with environmental outcomes.

The top three cited benefits were better planning and predictability at 29%, better risk management at 26%, and better, faster decision-making at 23%. By contrast, only 11% said AI could deliver sustainability benefits, and 13% identified enhanced traceability as a key benefit.

That split highlights a narrower view of AI in supply chains, with businesses appearing to focus on immediate planning and resilience gains rather than links to emissions, waste or resource use. Yet many of the operational improvements respondents value are also relevant to sustainability goals, especially in logistics and inventory management, where inefficiency often leads directly to higher emissions and waste.

Targets and disruption

Executives also appeared divided over the ambition and practical effects of sustainability targets. A quarter of respondents said current targets do not go far enough, while another quarter said the right sustainability initiatives would disrupt existing processes.

That combination points to a familiar challenge for large organisations. Many leaders accept the scale of change required, but also recognise that meaningful action may alter how procurement, transport, replenishment and planning functions are run.

Blue Yonder used the report to outline updates to several products, including its Logistics Emission Calculator and integrations linking its Sustainable Supply Chain Manager with Demand and Supply Planning, as well as Allocation and Replenishment tools. The updates are intended to improve emissions reporting and bring carbon and waste measures into planning and optimisation processes.

The research was conducted with B2B International, a market research agency owned by Dentsu, and included respondents in retail, manufacturing and logistics.

"Pursuing sustainable supply chains means changing processes, which is challenging for every organization," said van Gendt.

"Now technology can accelerate change by integrating sustainability into supply chain decision making and optimization while achieving greater adaptability, resilience and staying power in the market."