According to sponsored.bloomberg.com, circularity through reuse, recycling, improved efficiency, and renewable energy could reduce almost 40% of emissions in supply chains—with only a minor impact on product pricing.
The Regulatory and Operational Imperative
The global supply chain faces heightened scrutiny amid climate change concerns, human rights issues, and corporate responsibility expectations. Drivers include consumer demand, investor pressure, resource security, and tightening legislative agendas. According to a 2022 global EY study, eight in 10 supply chain executives are increasing efforts toward sustainable operations—yet complexity, lack of visibility, and resilience requirements remain key barriers.
Gunther Rothermel, SAP’s Co-GM and Chief Product Officer for Sustainability, notes that procurement is evolving: “In the past, procurement might have looked at a technical specification and negotiated a price. In the future, sustainability in a supply chain becomes possible for businesses that are equipped to record, report and act on scopes 1–3 emissions data.” He adds that “companies can rise beyond the compliance challenge with a reliable data foundation enabled by the exchange of data along supply chains.”
Data Unification and AI-Driven Decision Making
Cloud technology is now unifying data intelligence to deliver end-to-end visibility—critical for improving sustainability reporting and enabling long-term transformation. Musidora Jorgensen, Microsoft Chief Sustainability Officer, U.K., observes: “The ability to unify data to provide the insights needed to reduce the overall impact across carbon emissions, water and waste is where organizations are struggling at the moment, primarily because it’s so complex to do.”
Sheri Hinish, EY’s Principal, Americas and Global Sustainability Innovation and Ecosystem Leader, emphasizes AI’s role:
“AI is a partner that can help you identify trends and patterns using large amounts of data, and that gives you insights that you otherwise wouldn’t have readily available.”
She cites applications including machine learning for carbon-responsible logistics networks, digital twin–enabled scenario modeling with a net-zero lens, and AI-powered demand forecasting tied to responsible inventory management.
Rishi Vaish, CTO and VP, IBM Sustainability Software, highlights agility:
“With AI technology, companies can quickly evaluate what-if scenarios, such as alternative supplier sourcing, alternative route planning or prioritizing different KPIs—for example, prioritizing carbon footprint over cost or time.”
Operational Integration and Trade-Off Management
Sean Jones, Microsoft Chief Sustainability Officer, Germany, stresses embedding sustainability into daily operations:
“When thinking about planning for production, supply chains and transportation, staff need operational sustainability data to determine the optimal production plan based on CO2 output vs. an alternative production plan that may result in faster delivery.”
Managers, he says, require real-time sustainability data to assess trade-offs—such as speed versus emissions—on a daily basis.
Blockchain is cited as a tool for immutable traceability—enabling proof of ethical and sustainable sourcing—but the source notes it has “faced considerable critic” (text cut off; no further detail provided).
Source: sponsored.bloomberg.com
Compiled from international media by the SCI.AI editorial team.
