What is Supply Chain Sustainability and Why it Matters

Supply chain sustainability explained

Supply chain sustainability integrates environmentally and socially responsible practices into logistics, transportation, and supply chain management to deliver goods efficiently. By leveraging cutting-edge transportation emissions management technologies, organizations can drive meaningful change, enhancing operational efficiency and fostering a more sustainable freight ecosystem.

However, pursuing sustainability initiatives presents unique challenges that shippers must address to achieve their environmental and operational goals.

• Cost management: With rising inflation, cost remains a top priority for shippers. Access to clean, load-level transportation data empowers shippers to adopt a data-driven approach, enabling fair and accurate cost management strategies.

• Precision in measuring emissions: Internal or per-ton calculations often overestimate emissions, making it challenging to identify actionable steps toward net-zero goals. Look for a transportation emissions management solution that uses your primary data rather than vague estimates.

• Securing stakeholder buy-in: Aligning internal teams, suppliers, carriers, and other stakeholders is critical to driving success—but it’s no small task. Achieving this alignment requires education, collaboration, and access to clear, actionable insights that demonstrate how sustainability creates measurable value.

• Gaps in infrastructure for alternative energy: The shift to alternative fuels faces roadblocks due to limited infrastructure. Through partnerships with energy providers and robust research, shippers can stay ahead of these challenges.

To effectively tackle supply chain sustainability challenges, shippers need more than just good intentions—they need granular, lane-level emissions data, unbiased insights on regulations, and collaboration with the broader shipper and carrier ecosystem to drive meaningful change.

Why supply chain sustainability matters

Sustainable practices should be incorporated as part of a broader transportation network strategy to achieve emissions reduction targets, reduce costs, enhance efficiency, and minimize risk. Companies that prioritize sustainability position themselves as forward-thinking leaders in their industry.

Environmental impacts

Supply chains drive over 90% of a company's greenhouse gas emissions. Reducing scope 3 emissions is vital for companies striving to align with the Paris Agreement and meet their net-zero goals. By incorporating sustainability metrics into your decision-making process, you can balance cost, service, and emissions to optimize your transportation network. Strategic adjustments, such as mode and carrier selection or improving load fill, offer immediate opportunities for impactful improvements.

Economic efficiencies

The rising costs of raw materials, combined with the impact of cap-and-trade programs and clean fuel standards, are driving up the prices of goods across the supply chain. Cap-and-trade programs have led to higher fuel costs for diesel, with recent increases ranging from 30 to 60 cents per gallon. However, shippers have some control over these expenses by reducing their emissions. By implementing strategies to lower their carbon output, shippers can not only cut costs but also navigate the financial pressures of these regulatory programs more effectively.

Consumer expectations

Consumers today pay closer attention to the environmental impacts of their purchases. Recent studies show that 80% of shoppers are willing to wait longer for their orders if it means choosing a sustainable shipping option. As global temperatures continue to rise, the shift in consumer sentiment shows no signs of fading. For companies, integrating sustainable supply chain strategies into daily operations is becoming an essential step forward. In fact, 87% of shippers have set long-term sustainability-related transportation goals, according to Breakthrough’s recent 2025 State of Transportation Report. This trend is expected to continue as more shippers realize that emissions reduction can also reduce costs and enhance operational efficiency. For example, optimizing load fill reduces the number of trucks on the road, reducing cost and emissions.

Risk mitigation

Adopting emissions reduction strategies allows shippers to mitigate financial, legal, and reputational risks. Unlike diesel, which is subject to volatile price swings driven by global market forces, alternative fuels like CNG and RNG offer more stable pricing. This stability enables more accurate financial forecasting and budgeting, making these energy options a smarter, more reliable choice. Shippers can also stay ahead of upcoming environmental regulations, minimizing the impact of compliance requirements, and publicly committing to a SBT can also strengthen a company’s reputation by demonstrating its dedication to the future of our planet, which is increasingly valued by consumers and stakeholders alike.

How to create a sustainable supply chain

Developing a sustainable supply chain takes strategic planning and the right tools. By taking actionable steps, shippers can optimize their operations while prioritizing sustainability.

Track your carbon footprint

Shippers often think they can rely on internal or per-ton calculations for measuring emissions. These methods often overestimate emissions and fail to provide the accuracy needed to identify actionable steps to meet net-zero targets by 2050, as outlined in the Paris Agreement. Collaborating with a strategic transportation emissions management partner is necessary to calculate scope 1 and 3 emissions at a load-level to pinpoint problem areas.

Create emissions reduction strategies

After calculating your freight transportation emissions, the next step is to analyze the data and identify both quick wins and long-term, high-impact opportunities. Prioritize lanes supported by alternative energy infrastructure, optimize transportation routes, choose fuel-efficient carriers, and maximize load capacity for greater efficiency.

Execute sustainability initiatives

Once you’ve developed a sustainability strategy, the next step is putting that plan into action. Execution involves ensuring that all aspects of your operations align with your sustainability goals, from reducing emissions to optimizing resource use, and clearly communicating your objectives. It’s crucial to establish clear metrics for success and regularly track progress to stay on course. Additionally, adjustments may be necessary to respond to changing circumstances or to align with decarbonization regulations, which can vary across different regions.

The future of sustainable shipping

The global transportation landscape is shifting rapidly, and Breakthrough is at the forefront of helping shippers adapt. Advancements in technology and consumer demand are pushing the needle toward decarbonization. By prioritizing innovation and using cutting-edge tools like predictive analytics and emissions management solutions, shippers can lead the charge for sustainable growth.

Automation and advanced analytics

AI-powered transportation analytics tools are essential to consider sustainability impacts while monitoring cost and service. By leveraging advanced technologies like generative AI and machine learning, you can find opportunities to reduce emissions quicker while maintaining operational scalability. These solutions can also enhance efficiency across your team, enable precise forecasting models, and empower you to anticipate and respond to demands from c-suite executives with greater accuracy.

Decarbonization and emission management

The journey toward supply chain sustainability begins with establishing an emissions baseline. This critical first step provides clarity on your current position and sets the stage for future progress. Breakthrough’s 2025 State of Transportation Report reiterates this stance, reporting the top tactics for shippers who have set sustainability-related transportation goals include tracking scope 1 transportation emissions (51%), scope 3 emissions (38%), and scope 2 emissions (37%). Accurate data is the foundation for reducing emissions and improving efficiency. By calculating a precise emissions baseline, you lay the groundwork to streamline processes, optimize resources, and drive meaningful progress toward goals.

Geopolitical policy regulations

Staying ahead of global policies is essential for supply chain sustainability. With constantly changing regulations and political landscapes, it’s crucial to have a thorough understanding of the policies that could affect your energy and freight decisions. By partnering with a strategic transportation partner, you can stay informed and adapt accordingly to minimize disruptions and maintain compliance.

Sustainability reporting

As regulations tighten and expectations rise, you must be prepared to comply with reporting standards and, more importantly, demonstrate real progress in reducing your carbon footprint. With the European Union’s Emissions Trading System and California leading the way in driving accountability and action, it's crucial to understand how these mechanisms work and how they impact your business.

Dynamic freight pricing

To stay ahead in supply chain sustainability, it’s essential to have a dynamic linehaul rate strategy. Gaining visibility into your linehaul rates at both the load and lane level, combined with access to real-time industry benchmarks, allows you to pay carriers competitively while maintaining transparency.

Improve supply chain sustainability with Breakthrough

Supply chain sustainability is no longer an option – it's the future. When shippers critically evaluate their supply chains, they can uncover opportunities to improve efficiency, reduce their carbon footprint, and adapt to evolving consumer demands. By partnering with Breakthrough and leveraging our end-to-end transportation emissions management solution, CleanMile, you can achieve your transportation sustainability goals while driving meaningful results for your company and the planet.