MIT Supply Chain Frontiers

Sustainability Still Matters

Oct 9, 2025
Dr. Josué Velázquez Martínez, director of the MIT Sustainable Supply Chain Lab, and Dr. Sreedevi Rajagopalan, a research scientist at the lab, discuss the pressing importance of sustainability in supply chains. They reveal that 80% of firms see sustainability as critical to their future despite political and regulatory challenges. The conversation explores the complexities of tracking Scope 3 emissions, the rise of biofuels and hydrogen for freight, and the importance of industry collaboration to enhance sustainability practices.
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INSIGHT

Sustainability Holds Despite Policy Rollbacks

  • 72% of companies reported no change in sustainability priorities despite U.S. policy rollbacks.
  • Sustainability remains a long-term business priority, not only a regulatory response.
INSIGHT

Regional Drivers Diverge For Sustainability

  • Investor pressure led sustainability drives in prior years, but regional drivers now differ.
  • Europe faces stronger regulatory pressure while North America still feels investor-driven demands.
ANECDOTE

Electrification Demands Full Supply Chain Redesign

  • Transitioning to electric fleets requires redesigning many logistics elements like charging, spare parts, and workshops.
  • Josué describes electrification as 'not as easy as flipping a light switch' and a major supply chain problem.
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