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