Overview
MIT's State of Supply Chain Sustainability report provides an evidence-based assessment of how companies are managing environmental sustainability across their supply chains. The research covers measurement practices, data quality, supplier engagement, and the role of technology in improving supply chain visibility.
Why Most Supply Chains Are Still Unsustainable
The scale of the challenge is significant. MIT's 2024 research found that 67% of companies have no net-zero goal , meaning only one-third even aim to decarbonise their full value chain. CDP and BCG analysis shows just 15% of disclosing companies have set a Scope 3 supply-chain target —85% have no specific plan for their largest emissions source. BCG's 2025 EcoVadis data finds only 3% are on an SBTi-aligned reduction pathway , and McKinsey found just 9% of supply chains are currently compliant with the EU's emerging due-diligence rules.
A major driver of unsustainable supply chains is measurement failure. Carbon footprint tracking in supply chains remains unreliable: spend-based approaches can overstate emissions by 37–557%, and commercial datasets for the same company show correlations as low as 1% between providers. Around 70% of companies cite supplier data gaps as their top barrier to accurate Scope 3 reporting—the exact gap this report examines in depth.
For a practical guide to the root causes and solutions, see Why Most Sustainable Brands Fail: The Hidden Supply Chain Crisis .
Key Takeaways
- Measurement maturity — Most companies have basic Scope 1 and 2 measurement but struggle with comprehensive Scope 3 coverage
- Technology adoption — Growing investment in digital tools for supply chain emissions tracking and analysis
- Supplier challenges — Smaller suppliers face disproportionate burden in meeting data requests from large customers
- Regulatory pressure — CSRD and similar regulations are accelerating investment in supply chain sustainability data
Relevance to Simple Users
Simple addresses the measurement maturity gap identified by MIT — enabling comprehensive Scope 3 coverage through automated, AI-driven extraction of activity-based emissions data from existing business documents.