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Operationalizing Supply Chain ESG: Aligning Sustainability with Cost, Efficiency, and Resilience

Publisher IDC
Published Feb 17, 2026
Length 10 Pages
SKU # IDC20900792

Description

This IDC Perspective examines how supply chain organizations are evolving their environmental, social, and governance (ESG) initiatives from compliance-driven reporting to performance-oriented programs that directly support cost reduction, operational efficiency, and resilience. This document outlines the three ESG domains where supply chain functions can create the greatest impact — energy and resource efficiency, supplier performance and risk management, and circularity and waste reduction — and describes how unified ESG data, modern planning systems, and sustainability-enabled network design tools help organizations embed these measures into daily decision-making. CIOs and chief supply chain officers (CSCOs) will find guidance on building the data foundations, governance models, and technology road maps needed to integrate ESG metrics into operational planning processes and to ensure sustainability investments deliver tangible business value.“As regulatory pressure fluctuates and global mandates such as the European Union’s Corporate Sustainability Reporting Directive (CSRD) and Carbon Border Adjustment Mechanism (CBAM) drive continued transparency expectations, supply chain leaders increasingly prioritize sustainability actions that also deliver measurable financial and operational benefits,” says John Bermudez, adjunct research advisor for IDC’s IT Executive Programs (IEP).

Table of Contents

10 Pages

Executive Snapshot

Key takeaways

Recommended actions

Situation Overview

Three priorities for cost-aligned supply chain ESG

Energy and resource efficiency

Technology examples

Supplier performance and risk management

Technology examples

Circularity and waste reduction

Technology examples

Measuring ESG impact

Challenges of ESG measurement and management

Building a unified ESG data model

Role of network design and optimization tools in ESG

Role of CIOs and CSCOs in the new ESG landscape

Collaborative leadership: ESG as operational excellence

ESG in a post-mandate era

Advice for the Technology Buyer

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Related research

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