State of Supply Chain Sustainability Report finds corporate commitment at record high, but governance lags behind

The 2026 State of Supply Chain Sustainability report reveals a record high corporate commitment to sustainability, with 83 percent of supply chain professionals rating it as important or very important to long-term business success. However, the report also highlights a gap between commitment and capacity, as many organizations face challenges in implementing their sustainability strategies.

Tariff uncertainty has forced 68 percent of respondents to delay, scale back, or abandon sustainability strategies, with nearly one-third seeing operational emissions increase due to these disruptions. Additionally, more than 80 percent of respondents across North America, Europe, and Asia agree that ongoing geopolitical conflict is reducing the effectiveness of their organization's climate action.

While AI adoption is accelerating, with 78 percent of North American organizations currently using AI in sustainability initiatives, the report reveals that only 53 percent of mature agentic AI users report a reduction in total greenhouse gas emissions. This suggests that operational efficiency does not automatically translate into lower net emissions.

Another key finding is the lack of formal governance structures for sustainability within organizations. Only 51 percent of companies with publicly stated sustainability goals have established a formal cross-functional sustainability team, and only 33 percent place sustainability oversight at the board level. Companies with these governance structures report sustainability being built into decisions 57 percent of the time, compared to just 13 percent for companies with single-function responsibility.

The report suggests that closing the governance gap by building resilience against disruption and hard-wiring accountability into structure is crucial for the sustainability efforts of organizations. Those that do not may find their ambitions unfulfilled due to the current obstacles in governance, accountability structures, technology infrastructure, and measurement capabilities.