Top 10 Sustainable Supply Chain Strategies

In today’s global economy, supply chain sustainability is no longer a mere option—it’s a necessity. With the looming threat of climate change and the urgent need to reduce carbon footprints, businesses worldwide are committing to ambitious goals, such as achieving net-zero emissions by 2050. Notably, Deloitte highlights that approximately 70% of corporate emissions are Scope 3 emissions, which occur up and down a company’s supply chain. This statistic underscores the critical role supply chains play in global sustainability efforts.

But sustainability extends beyond just reducing emissions. It encompasses waste reduction, resource conservation, and the empowerment of suppliers. A truly green supply chain strategy addresses all these facets, ensuring a holistic approach to environmental stewardship.

Here, we spotlight ten innovative sustainable supply chain strategies employed by leading companies, showcasing how they are investing in sustainable solutions to make a tangible difference.

10. Circular Packaging

• Key Company: Diageo  
• Main Benefit: Reduction in plastic production

Diageo, one of the world’s largest beverage companies, is taking significant steps to reduce its plastic footprint. Brands like Guinness are now packaged without plastic, utilizing glue or biodegradable and recyclable cardboard instead of traditional plastic rings. Additionally, Diageo has eliminated plastic shrink-wrapping from all its beer products, minimizing waste across its supply chain. This top-down approach relieves consumers from the burden of making sustainable choices, as the company proactively implements eco-friendly solutions. Oliver Loomes, Country Director of Diageo Ireland, emphasizes the dual importance of environmental impact and financial sustainability in their business model.

9. Sustainable Sourcing

• Key Company: Nestlé  
• Main Benefit: Improved social and environmental sustainability

With a vast portfolio exceeding 2,000 brands, Nestlé relies on farmers from numerous countries for its ingredients. Managing such an extensive global supply chain sustainably is challenging, but Nestlé is determined to source 100% of its produce responsibly by 2030. Responsible sourcing for Nestlé involves considering farming practices, impacts on forests and ecosystems, and respect for human rights and animal welfare. The company has already achieved sustainable sourcing for its major ingredients like coffee and cocoa and is now focusing on other supply chains.

8. Renewable Energy in Operations

• Key Company: Walmart  
• Main Benefit: Reductions in Scope 1 & 2 emissions

Walmart aims to power 50% of its operations with renewable energy by 2025. With over 600 renewable energy projects across multiple countries and agreements for over five billion kWh of wind power annually, the retail giant has avoided more than 2.3 million metric tons of CO2e emissions. Walmart plans to increase its solar capacity significantly by 2030, targeting 100% renewable energy for all operations by 2035. However, it’s worth noting that Walmart’s recent carbon report indicated its annual Scope 1 emissions were the highest in nearly a decade, highlighting the ongoing challenges in emission reductions.

7. Sustainable Transportation

• Key Company: IKEA  
• Main Benefit: Reduced greenhouse gas emissions

IKEA is transforming its delivery services to decarbonize its supply chain. In Shanghai, all deliveries are made using electric vehicles, saving over 300,000 kg of CO2 emissions annually. The company plans to extend this electric delivery service to hundreds of major cities by 2025. Additionally, IKEA is optimizing delivery routes to reduce fuel consumption for the remaining internal combustion engine vehicles in its fleet.

6. Water Conservation

• Key Company: PepsiCo  
• Main Benefit: Preventing water scarcity

PepsiCo’s “Positive Water Impact” strategy aims to replenish more water than it uses in high-risk water areas by 2030. Recognizing its dependence on healthy global water reserves, PepsiCo has improved its water-use efficiency by 15% since 2015. The company’s efforts have also provided safe water access to nearly 70 million people, demonstrating a commitment to both environmental stewardship and community well-being.

5. Sustainable Packaging Innovation

• Key Company: Procter & Gamble  
• Main Benefit: Reduced waste

Procter & Gamble is tackling the challenge of plastic waste head-on by developing innovative sustainable packaging solutions. The company is working on its first paper bottle for Lenor fabric softener and aims to make 100% of its packaging recyclable or reusable by 2030, eliminating single-use plastics from its supply chain. Guided by science and life cycle thinking, P&G focuses on designing packaging that minimizes environmental impact throughout its lifecycle.

4. Supplier Engagement

• Key Company: Apple  
• Main Benefit: Skill sharing and investment in renewables

Apple’s “Supplier Clean Energy Program,” launched in 2015, focuses on reducing the carbon footprint of its global supply chain by encouraging suppliers to transition to renewable energy sources. The program has assisted over 200 suppliers in switching to 100% renewable electricity, removing 13.9 million tons of CO2 from Apple’s supply chain. Beyond financial support, Apple provides training and resources on energy efficiency and waste reduction, fostering a culture of sustainability among its partners.

3. Zero Waste to Landfill

• Key Company: Toyota  
• Main Benefit: Reduced waste and increased recycling

Toyota has been a pioneer in sustainability since the 1970s when it constructed a zero-pollution waste disposal facility to create the cleanest vehicle manufacturing environment globally. The company has since introduced on-site biogas generation, water treatment programs, and a comprehensive waste management campaign. This initiative has diverted over 1.5 million tons of waste from landfills to recycling plants, covering everything from cardboard to cafeteria waste.

2. Sustainable Product Design

• Key Company: Philips  
• Main Benefit: Lower costs and increased product lifespan

Philips is embracing sustainable product design by aiming to generate 25% of its revenue from refurbished products by 2025. Through its “Better Than New” campaign, Philips promotes the benefits of refurbishment, including cost savings and waste reduction. The company’s products are designed for easy disassembly and component replacement. For instance, Philips’ medical imaging systems are made with materials that are 90% recoverable, significantly extending their lifespan and reducing the product carbon footprint by 7% since 2015.

1. Blockchain Technology

• Key Company: IBM  
• Main Benefit: Enhanced supply chain transparency and efficiency

Blockchain technology is revolutionizing supply chain transparency, and IBM is at the forefront of this innovation. By utilizing advanced databases to track transactions, blockchain provides an immutable record of a product’s journey through the supply chain. IBM’s blockchain-based platform improves transparency and traceability across complex global networks. The IBM Food Trust initiative, for example, allows food products to be traced from farm to store in seconds rather than days. Adopted by major retailers like Walmart and Carrefour, this system enhances food safety and reduces waste. In practical terms, Walmart can now trace the origin of sliced mangoes in just 2.2 seconds, compared to nearly seven days previously, and pilot projects have seen food waste reductions of up to 30%.

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These ten strategies exemplify how leading companies are integrating sustainability into their supply chains. While these commitments are inspiring, the journey doesn’t end here. Continuous effort, collaboration, and innovation are essential to drive meaningful change and achieve a truly sustainable global economy.