Sustainable supply chains are a competitive advantage
Don’t make the mistake of approaching sustainable supply chain management solely as an environmental obligation. In 2025, sustainability is no longer just about adhering to regulations—it’s a competitive advantage.
As consumer expectations rise, regulations tighten, and investors focus more on ESG performance, businesses must adapt to thrive. One of the most impactful ways to do this is through sustainable supply chain management (SSCM).
While once viewed as a cost or compliance exercise, SSCM is now recognised as a strategic growth lever. When done right, it helps companies reduce risk, unlock efficiencies, increase brand trust, and future-proof their operations.
In this article, we’ll answer:
- What is a Sustainable Supply Chain?
- What exactly is meant by sustainable supply chain management?
- How do you build a sustainable supply chain strategy that will drive business growth?
- What are examples of how companies are integrating sustainability into their supply chains? And what are the real, measurable benefits?
- What are emerging trends to watch out for around sustainable supply chain management?
- How can Segura help achieve sustainable supply chain management?
- Frequently Asked Questions
What is a Sustainable Supply Chain?
A sustainable supply chain goes beyond environmental considerations—it also addresses social, economic, and governance impacts across the entire lifecycle of a product or service.
True sustainability spans every stage of the supply chain, from raw material extraction to manufacturing, transportation, distribution, consumer use, and end-of-life disposal or recycling. It’s not just about reducing negative impacts; it’s about actively creating positive value for people, the planet, and long-term business performance.
A sustainable supply chain aims to:
- Reduce emissions, waste, and water usage
- Promote fair labour practices and ethical sourcing
- Build resilience against disruptions like climate change or geopolitical risks
- Enhance transparency and accountability
What Is Sustainable Supply Chain Management?
Sustainable Supply Chain Management (SSCM) is the integration of sustainable practices into supply chain planning, sourcing, production, and logistics. It ensures that every link in the chain—from suppliers to retailers—adheres to environmental and social governance (ESG) standards while maintaining operational efficiency.
SSCM involves:
- Supplier audits and sustainability assessments
- Responsible procurement policies
- Low-impact logistics and green packaging
- Lifecycle thinking and circular economy initiatives
- Investment in software to track compliance and performance
How to Develop a Growth Driven Sustainable Supply Chain Strategy?
A mindset shift is often required to see the value of a strong sustainable supply chain strategy. As already mentioned, sustainability is no longer just an exercise in ticking boxes and adhering to legislation, there is so much more to leverage.
To help give you a new perspective, read our five steps to building a sustainable supply chain strategy and the potential growth impact at each stage.
1. Map Your Entire Value Chain
It’s essential to identify all stages, from raw material extraction to end-of-life management, as well as the key players involved (suppliers, manufacturers, distributors, customers). Segura’s solutions can help. Read our step by step guide to mapping the supply chain.
Growth impact:
Mapping the supply chain provides businesses with critical visibility into every tier of their sourcing and production processes. This transparency allows companies to identify inefficiencies, reduce waste and risk—ultimately lowering costs and boosting productivity.
2. Develop Sustainable Procurement Policies
Effective adherence to your supplier codes of conduct is essential. By monitoring supplier performance and using supplier scorecards, your buyers can select partners considering ethical and environmental performance, and invest in long-term supplier relationships. Our supply chain management software allows you to capture and action this data in one central repository.
Growth impact:
Developing sustainable procurement policies helps businesses build stronger, more reliable supply chains by ensuring that suppliers meet clear environmental, social, and ethical standards. This reduces the risk of disruptions, non-compliance, or reputational damage caused by unethical or unsustainable practices. In turn, this creates a more stable and resilient operation—critical for maintaining consistent output, meeting regulatory requirements, and building long-term stakeholder trust.
Sustainable procurement also supports cost savings and innovation. By prioritising suppliers that offer resource-efficient factories and processes, renewable materials, or circular economy models, businesses can reduce waste, lower operating costs, and unlock access to greener products and technologies.
Set Decarbonisation Targets
Set science-based emissions reduction goals, particularly for Scope 3 (indirect) emissions which often form the bulk of a company’s carbon footprint.
Growth impact:
Sustainable supply chains help reduce energy, water, and material use—cutting costs and improving environmental performance. Companies that decarbonise effectively benefit from lower overheads, more efficient logistics, and improved supplier collaboration, leading to stronger financial performance and a competitive edge.
Use Software for Traceability
Use platforms like Segura to gain real-time visibility into every stage of their value chain—from raw materials to finished products.
Growth impact:
Segura’s software solutions support businesses to track and trace their orders in the supply chain. By improving transparency and control, businesses can respond faster to disruptions, avoid costly mistakes, and operate more efficiently—all of which contribute directly to improved profitability and growth.
Internal Alignment and Training
Make sustainability part of KPIs, procurement decisions, and staff training to embed it into company culture.
Growth impact:
When teams are aligned around a shared sustainability vision, implementation becomes smoother and more effective. Training equips employees to make informed, responsible decisions that support the company’s strategy. The result? Faster execution, stronger innovation, and a more engaged workforce—all of which contribute to sustained business growth.Examples of Sustainable Supply Chain Management
At Segura, we’ve seen first-hand that companies integrating sustainability into their supply chains gain real, measurable benefits—including reduced inefficiences, improved risk management, enhanced brand reputation and stronger stakeholder relationships.
Case StudY: TFG London
TFG London, the retail group behind premium womenswear brands such as Phase Eight, Whistles, Hobbs, and most recently White Stuff, is setting a high bar for sustainable supply chain management. By adopting Segura’s advanced supply chain transparency platform, TFG has successfully mapped its supply chain all the way down to Tier 4—tracking raw material origins.
THE RESULT
TFG London now has a level of visibility which empowers them to make significant strides toward long-term sustainability objectives. Segura’s platform has enabled the business to stay compliant with evolving regulations, proactively mitigate risk by pinpointing supply chain vulnerabilities, and strengthen collaboration with suppliers. Armed with robust data, TFG can now assess suppliers’ operational practices, identify emissions hotspots, and set measurable KPIs to drive carbon reduction. From addressing risks in high-exposure regions to streamlining production and reducing transport costs, TFG is using real-time insights to shape smarter, more sustainable supply chain strategies.
Whilst work continues, we have mapped a significant part of our supply chain down to raw materials (tier 4), enabling us to not only prepare ourselves for the Eco-design regulation and Digital Product Passport, but to highlight risks and opportunities to our design, sourcing, compliance and supply chain teams.
Francesca Mangano, Head of CSR and Sustainability, TFG London
Case StudY: River island
River Island used Segura’s platform to gain visibility of their supply chains from tiers 1 to 4. This has enabled the business to assess supply chain performance and ESG credentials, identify risks, and make more informed, data-driven buying decisions.
THE RESULT
The impact has been significant. River Island has enhanced its reporting capabilities and overall transparency, helping to uncover and address critical issues. In 2022, for example, the business identified 17 cases of unauthorised subcontracting. Rather than simply flagging these issues, River Island worked closely with the suppliers involved to understand the root causes and implement corrective actions based on the findings.
The brand’s commitment to responsible sourcing has also contributed to stronger reputation and recognition—it was named a finalist in the Drapers Sustainable Fashion Awards.
Segura provides us with a complete solution, incorporating all of our supply chain management and transparency requirements, with the ability for us to expand the remit as our business needs develop. Through the platform we can extract detailed reports, requesting information from suppliers directly and validating it. It will allow us to identify opportunities to improve performance, and drive cost and time efficiencies across the business. Our customers expect products that are safe, sustainable, and responsibly sourced and we are committed to ensuring that is exactly what we can offer.
Jose Arguedas, Head of Corporate Responsibility and Sustainability, River Island
Supply Chain Sustainability Trends: What Does the Future Hold?
As technologies and regulations continue to evolve at a frightening pace and pressure from consumers and investors grows, the supply chain landscape is evolving fast. For businesses to remain competitive, resilient, and responsible, they need not just to react to change—but to anticipate it.
It’s therefore important to ask future proof questions such as what key trends are shaping the future of sustainable supply chain?
Understanding and embracing these developments isn’t just about risk mitigation—it’s about unlocking new opportunities for efficiency, innovation, and long-term growth.
Here are five trends to watch—and how each could help accelerate business performance:
1. AI & Predictive Analytics
Artificial Intelligence is revolutionising supply chain management by forecasting disruptions, identifying inefficiencies, and modelling sustainability outcomes. Predictive analytics could flag ESG risks before they occur, optimise inventory levels, and streamline transport routes.
Estimated growth impact
This technology could give businesses a competitive edge by improving forecasting accuracy and boosting supply chain resilience. Regenerative Supply Chains
2. Mandatory ESG Reporting
Regulations such as the EU’s Corporate Sustainability Reporting Directive (CSRD) are making non-financial reporting a legal obligation. Businesses must now gather and disclose data on environmental, social, and governance practices across their entire supply chain.
Estimated growth impact
Compliance not only avoids penalties but also builds investor confidence and customer trust. Transparent ESG reporting can differentiate brands in crowded markets and attract partners and capital aligned with sustainability values.
3. Climate Risk Integration
Companies are embedding climate risk assessments into procurement, production, and logistics to prepare for extreme weather, resource scarcity, and carbon-related disruptions.
Estimated growth impact
Proactively managing climate risks helps minimise disruption-related losses and protects business continuity. Companies that adapt early are better positioned to serve customers consistently and protect their bottom line.
4. Regenerative Supply Chains
The shift from sustainability to regeneration is gaining traction. Businesses are beginning to implement strategies that not only reduce harm but actively restore ecosystems and communities.
Estimated growth impact
Regenerative practices create long-term value by improving resource availability and stability of supply, strengthening community ties, and opening new market opportunities—especially among eco-conscious consumers and investors.
Sustainable supply chain management is not just about reducing harm—it’s about creating opportunity. From cost savings and risk reduction to brand loyalty, innovation, and competitive advantage, SSCM has evolved into a powerful engine for business growth.
In 2025 and beyond, the companies that lead on sustainability won’t just protect their reputations—they can grow stronger than those that lag behind. The message is clear: sustainability isn’t a sideline—it’s a smart long-term business strategy.
How Segura Can Help
Modern supply chain software is essential for scaling sustainability and turning it into a growth driver. Segura’s platforms provide end-to-end visibility, allowing businesses to trace suppliers, monitor compliance, and automate ESG data collection.
With real-time reporting and alerts, companies can take swift action to address issues, improve supplier engagement, and meet stakeholder expectations. By digitising the supply chain, tools like Segura make sustainability measurable—and that measurability builds trust, accountability, and long-term value.
FAQs
1. What is the difference between a sustainable and a regenerative supply chain?
A sustainable supply chain aims to minimise negative environmental and social impacts, while a regenerative supply chain goes a step further—it seeks to restore and improve ecosystems and communities. Regenerative practices include reforestation, soil health improvements, and social investment in supplier regions, delivering long-term benefits for both the planet and business growth.
2. What are challenges to achieving sustainable supply chains?
Sustainable supply chains face several complex challenges. One of the biggest is lack of visibility and transparency, especially in global supply chains that involve multiple tiers of suppliers. Many companies struggle to trace where materials come from, how goods are produced, and whether suppliers meet environmental and ethical standards.
Other key challenges include balancing cost pressures with sustainability goals, navigating inconsistent global regulations, and managing data collection and reporting across diverse suppliers. Additionally, securing supplier buy-in and driving behavioural change across the value chain can be difficult without strong collaboration and clear incentives.
3. What kind of return on investment can a business expect from investing in sustainable supply chain management?
The ROI from sustainable supply chain management is multifaceted. While investment into technology and human resources will be required, businesses often see returns through reduced operational costs (e.g. administrative burden, energy and waste reduction), improved efficiency, better risk management, and stronger relationships with investors and stakeholders. Furthermore, proactive sustainability efforts can open up new market opportunities and ensure long-term resilience in the face of evolving regulations and climate change.
By adopting advanced tools like Segura, retailers can stay ahead of the curve and build more ethical, responsible, robust and green supply chains.
