Key Findings

  • Despite major policy shifts in 2025, such as the U.S.withdrawal from the Paris Agreementand the EU scaling back its proposedsustainability legislation, according toa new report from the Massachusetts Institute of Technology (MIT), approximately 73% of companies have not changed their sustainability commitments.
  • The report found that 15% of surveyed companies lowered their commitments, but 12% increased them. However, among companies that maintained or raised their goals, only 39% have integrated sustainability into daily decision-making. The report notes that companies setting public sustainability goals are 74% more likely to invest in high-impact initiatives.
  • About 70% of respondents said the biggest barrier to measuring Scope 3 emissions is supplier data availability. About half of respondents also cited the lack of standardized methodologies and the inherent complexity of calculations as additional challenges.

In-Depth Analysis

This report examining supply chain sustainability was released earlier this month by the MIT Center for Transportation & Logistics and the Council of Supply Chain Management Professionals. The report collected feedback from 1,203 supply chain professionals across 97 countries and 6 continents.

Companies' continued adherence to sustainability commitments "shows that corporate action is being driven by forces beyond federal policy," Sreedevi Rajagopalan, an MIT research scientist and one of the report's authors, said in an email statement to ESG Dive.

But Rajagopalan noted that while European companies remain motivated bythe EU's Corporate Sustainability Reporting Directive (CSRD), North American companies are primarily driven by investor expectations and board priorities.

"(North American) companies are responding to financial markets, shareholders, and reputational concerns—even without regulatory pressure," she added.

MIT's analysis also revealed clear regional differences in supply chain sustainability approaches. About 50% of North American corporate respondents said they still rely on spreadsheets, compared to only 32% of European companies, indicating that Europe has more broadly adopted life cycle assessment tools and customized solutions. Additionally, North American companies are more likely to rely on financial data and industry averages, while European companies are more likely to collect supplier data directly. The report notes that the former approach has limitations because it prioritizes cost over emissions and may not convey the true emissions associated with procurement.

Overall, the report found that most companies attempt to reduce Scope 3 emissions by setting procurement sustainability requirements and requiring suppliers to provide emissions data. According to the report, commercial mechanisms—such as offering long-term contracts with sustainability commitments, providing financial incentives, or imposing penalties—are relatively underutilized.

Similar to public commitments, industry alliances also help companies achieve their sustainability goals. Among companies participating in industry collaboration to track and reduce Scope 3 emissions, 87% reported tangible benefits, such as stronger supplier engagement, better alignment on sustainability goals, and easier access to emissions data and reporting frameworks. Furthermore, 64% of companies highlighted gains in sharing expertise and resources, and even achieved direct cost savings through joint sustainability investments.

On the other hand, the survey also found that many companies are extending timelines for achieving net-zero or emission reduction goals. Rajagopalan said this could be due to operational or financial constraints, or concerns about reputational risk from failing to meet targets.

"This reflects a growing recognition that reducing emissions is not easy and that companies cannot tackle this challenge alone," she said.