Key Metrics to Track for Supply Chain Sustainability Reporting

Sustainability is no longer an option—it’s an operational necessity. With tightening regulations like the Corporate Sustainability Reporting Directive (CSRD) and rising consumer expectations, businesses must integrate supply chain sustainability metrics into their core strategies. But what are the key metrics that define a sustainable supply chain? And how do businesses effectively measure their environmental, social, and financial impact? 

In this comprehensive guide, we break down the essential sustainability metrics for supply chain reporting—from greenhouse gas emissions to ethical sourcing, financial performance, and data analytics. Companies like Dell have pioneered sustainable supply chain management, and their reports serve as benchmarks for other businesses. If you're ready to drive sustainable transformation, here’s what you need to track. 

Did You Know?

The CDP Global Supply Chain Report 2021 revealed that a company's supply chain emissions are, on average, 11.4 times higher than its direct operational emissions. Despite this significant impact, only41% of companies reported emissions for at least one Scope 3 category, which includes supply chain emissions.

Key Metrics to Track for Supply Chain Sustainability Reporting 

1. Carbon & Energy Metrics: The Foundation of Sustainability 

a. Greenhouse Gas (GHG) Emissions Tracking 

GHG emissions form the backbone of any supply chain sustainability report. Companies must track: 

• Scope 1 (direct emissions from owned facilities/vehicles) 

• Scope 2 (indirect emissions from purchased electricity, heating, and cooling) 

• Scope 3 (indirect emissions from suppliers, logistics, and raw material extraction) 

For a complete breakdown of Scope 3 emissions in manufacturing, refer to this guide. 

b. Energy Efficiency Across Supply Chain Activities 

Energy-intensive industries must optimize consumption to reduce environmental impact. Metrics to track include: 

• Energy consumption per unit of production 

• Renewable energy use vs. fossil fuels 

• Carbon intensity per shipment 

For actionable insights, check out Mavarick’s guide on energy efficiency in manufacturing. 

Stat Alert:

A study by the International Energy Agency (IEA) found that industrial energy use accounts for 37% of global energy consumption.  

2. Ethical Sourcing & Social Responsibility Metrics 

a. Supplier Engagement & Fair Labour Practices 

Brands need to ensure ethical practices within their supply chains. Key tracking indicators include: 

• Percentage of suppliers adhering to ESG standards 

• Child labour & fair wage compliance 

• Diversity & inclusion in supplier selection 

For guidance, check out this blog on supply chain emissions and supplier validation. 

Did You Know?

According to a report by the ILO, nearly 160 million children worldwide are involved in child labour, many within global supply chains.  

3. Circular Economy & Waste Reduction Metrics 

a. Product Lifecycle & Waste Diversion Metrics 

A sustainable supply chain minimizes waste and maximizes resource reuse. Key metrics include: 

• Waste diversion rate (percentage of materials recycled or repurposed) 

• Percentage of circular product design 

• End-of-life recovery for products 

Learn more about carbon accounting in circular economies in this blog. 

Fact Check:

The Ellen MacArthur Foundation found that transitioning to a circular economy could reduce global CO2 emissions by 45% by2050.

4. Financial & ESG Performance Metrics 

a. Sustainability’s Financial Impact on Business 

Companies must track financial reporting on sustainability risks and benefits: 

• Cost savings from energy efficiency initiatives 

• Sustainability-linked financial performance (e.g., green bonds) 

• ROI from sustainable procurement strategies 

For insights on financial and ESG reporting, read this guide. 

Stat Alert: According to Harvard Business Review, companies that integrate sustainability into their financial strategy outperform competitors by 6%annually.

5. Data Analytics & Digitalization in Sustainability Reporting 

a. Using Data for Real-Time Supply Chain Monitoring 

• AI & IoT integration for tracking emissions in real-time 

• Blockchain for transparency in sustainable sourcing 

• Predictive analytics for sustainability risk management 

Learn how data analytics enhances ESG reporting in this article. 

Did You Know?

McKinsey research says ''Harnessing AI and Analytics for Advanced Procurement Strategies" highlights the importance of sustainability-centric data and effective analytical tools in meeting ambitious carbon reduction goals. 

Conclusion: The Path to a Sustainable Future 

Tracking the right sustainability metrics for supply chain reporting ensures compliance, enhances brand reputation, and delivers long-term financial gains. From GHG emissions tracking to supplier engagement and circular economy initiatives, these key metrics drive a more sustainable supply chain. 

If you're looking for the best ESG & sustainability reporting solutions, explore Mavarick’s sustainability and carbon reporting tools. 

Want to simplify your supply chain sustainability management? Contact Mavarick today and take control of your sustainability performance!