Sustainability and ESG criteria: new challenges and opportunities in Supply Chain Management

Supply Chain Management is facing increasingly complex challenges related to sustainability, an issue that has become central to corporate strategies. The increasing focus on ESG (Environmental, Social and Governance) criteria is pushing companies to rethink their supply chains, not only to reduce environmental impact, but also to ensure social responsibility and process transparency. In this scenario, sustainable supply chain management is no longer an option, but a necessity for companies that want to remain competitive and meet the expectations of consumers, investors and communities.

This is underlined by Professor Margherita Pero, Director of POLIMI Graduate School of Management’s Flex Executive MBA and expert in Supply Chain Management, who, in this interview, explores the main issues that companies must address in the next few years, illustrating how challenges can be transformed into opportunities thanks to innovative processes, emerging technologies and a cultural change driven by values and skills.

In 2025, and in the near future in general, what are the key issues that companies need to put at the centre of their supply chain management strategy in terms of environmental friendliness and corporate social responsibility?

When we talk about sustainability in the supply chain, we are referring to a set of issues that not only impact the environment but also touch on social and economic aspects. The challenge for companies is to integrate these principles into their processes, creating value for all stakeholders involved.

One of the first aspects that companies need to focus on is the measurement and reporting of ESG performance. It is impossible to improve what you do not measure: without clear indicators and transparent reporting processes, you cannot have a complete view of the areas in which the company excels and those that need improvement. This approach allows companies to orient their strategies towards concrete and measurable objectives, facilitating dialogue with investors, banks, customers and the community.

Alongside measurement, transparency and traceability of the supply chain emerge as indispensable elements. Companies must be able to trace the origin of raw materials, understand production processes and monitor transport modes. Tools such as QR codes, already adopted by realities such as Oleificio Zucchi to trace extra virgin olive oil, or digital passports in the fashion sector, allow consumers to make more conscious choices, increasing trust in the brand.

Another central theme is the circular economy. The adoption of recycled, recyclable or compostable materials represents an opportunity not only to reduce environmental impact, but also to differentiate oneself on the market. Companies such as Orange Fiber, which produces fabrics from citrus fruit waste, Aquafil, which recycles fishing nets to create nylon, and Candiani Denim, with its compostable garments, demonstrate how innovation can translate into competitive advantage. Finally, the social aspect should not be overlooked: guaranteeing respect for human rights and fair working conditions throughout the supply chain is a commitment that companies must take on responsibly; in this sense, significant and of value is the collaboration that companies can activate with realities such as social tailoring to promote the inclusion and welfare of communities.

How should we work to ensure that these issues translate into opportunities for growth and competitive development for companies? What support can the application of emerging technologies in this area provide today?

Tackling sustainability challenges does not only mean adopting innovative solutions but reviewing the entire business ecosystem by working on three fundamental dimensions: processes, people and technologies. Only through an integrated approach is it possible to turn challenges into real opportunities for growth.

Innovation, of course, plays a central role. The Internet of Things, for example, makes it possible to monitor the condition of products in real time during transport in order to ensure their quality, a crucial issue especially for sensitive sectors such as food and pharmaceuticals. Sensors and tags enable the collection of valuable data, improving visibility throughout the supply chain and enabling timely intervention in the case of critical issues.

Blockchain represents another strategic resource, as it offers the possibility of certifying the origin of raw materials and ensuring the traceability of transactions, a key element in combatting counterfeiting and strengthening trust between the different actors in the supply chain.

No less important is artificial intelligence, which makes it possible to automate complex processes such as the sorting of recycled materials, making flow management more efficient and reducing waste. However, technology, no matter how advanced, is not enough if it is not accompanied by collaboration between all actors in the supply chain. A significant and virtuous example in this sense is the NRRP Musa project, of which Politecnico di Milano is one of the partner universities: the project is developing, among others, a platform aimed at fostering cooperation between players in the fashion and design ecosystem to develop sustainable and scalable solutions.

At the heart of it all, however, are the people. It is crucial that managers are able to establish collaborative relationships, involving suppliers, partners and stakeholders to create an ecosystem based on trust and shared goals.

Sustainable supply chain management is therefore part of a broader business management context that, in addition to innovative solutions and services, requires internal change management driven by knowledge, skills, values and a clear and well-defined Purpose. Is this correct?

Quite right. The transition to a sustainable supply chain requires a profound change, not only in business processes, but also in organisational culture. This change must be driven by a clear vision, supported by specific knowledge and shared values that steer corporate choices towards sustainability.

In this context, training plays a decisive role. POLIMI Graduate School of Management is committed to training knowledgeable and responsible leaders capable of addressing the challenges of sustainability through a systemic approach. Programmes such as the EMBA and dedicated master's degrees do not merely transfer technical skills, but promote a broader vision based on the concept of ‘Leadership with Purpose’.

This approach is not only about achieving economic goals, but also about the ability to create value for society and the environment. Through continuing education initiatives, our school offers managers the tools to translate corporate purpose into concrete actions, fostering change that starts with people and is reflected in processes, including supply chain processes.

POLIMI Graduate School of Management also promotes a culture of collaboration and sharing, organising moments for discussion between companies, experts and students, in order to create a virtuous ecosystem in which innovation becomes the engine of a sustainable and lasting transformation, benefitting not only companies, but society as a whole.