Leaders Are Trying to Reduce Supply Chain Environmental Impact

Two-thirds (66%) of leaders are actively working to reduce their supply chain’s impact, according to a report, 2026 Supply Chain Compass: Spotlight on Sustainability, released last week by Blue Yonder, an AI company.

Additionally, (47%) of large enterprises have created dedicated sustainability teams, according to the survey of 678 senior supply chain professionals from large enterprises with annual revenue of more than $500 million.

These efforts are especially important given the fact that supply chains are responsible for 60% of global carbon emissions.

And 56% of the survey respondents agreed that supply chain operators bear responsibility to help solve problems like inflation and climate change.

However, only one in five supply chain leaders is confident that they can achieve their sustainability objectives.

“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, Blue Yonder, in a statement.

“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.”

How leaders are advancing sustainability

Rather than pursuing sustainability as a standalone initiative, many supply chain leaders are advancing sustainability goals through improvements in their operations. More than one-quarter (26%) say data and traceability are the primary actions needed to further sustainability efforts, while 33% identify forecasting technology as a sustainability opportunity.

That shift is also visible in how companies are organizing. Nearly half of respondents (47%) say their companies have created dedicated sustainability teams, even as sustainability, in and of itself, becomes less likely to rank as a high priority. Only 12% of supply chain leaders list sustainability among their top three strategic priorities, down from 24% last year.

In a year when 68% of leaders cite economic challenges like labor and inflation as top concerns, it’s understandable that some priorities would shift. Sustainability is now viewed as a shared, cross-functional strategy owned by dedicated teams, operations and logistics.

AI’s role in sustainability

Supply chain leaders are much more likely to associate AI with operational gains than with sustainability outcomes. Respondents’ top three operational benefits of AI were better planning and predictability (29%), better risk management (26%), and better, faster decision-making (23%).

By contrast, only 11% believe AI could deliver sustainability benefits, and just 13% cite enhanced traceability as a key benefit of using AI.

This suggests that many leaders still view AI primarily through an operational lens, even though the capabilities they value most, including improved planning, faster decisions and better risk management, can also support sustainability by reducing waste and improving efficiency across the supply chain. As AI adoption grows, we can expect greater awareness of how operational proficiency translates into sustainability gains.

Leaders say sustainability targets may need to go further

One-quarter (25%) of respondents said that current sustainability targets do not go far enough. Another 25% said the right sustainability initiatives will be disruptive to current processes. This underscores that leaders recognize both the urgency of the challenge and the operational change it can require.

Industry-leading solutions for smarter, sustainable businesses

As the report shows, many organizations are still working to translate sustainability goals into action. That makes better data, better visibility and stronger decision-making tools critical. To help improve reporting accuracy and optimize operational performance through unified, end-to-end insights, 

“Pursuing sustainable supply chains means changing processes, which is challenging for every organization,” added 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.”