Consumers expect more from the brands they buy from than ever before, and an ethical supply chain is now a requirement in the experience economy.
As they gain awareness about issues related to the environment, sustainability and forced labor, shoppers are demanding that supply chains meet ethical standards related to environmental stewardship, sustainable sourcing, reducing waste, and better worker conditions.
An Accenture Strategy survey of nearly 30,000 consumers in 35 countries found that more than half of UK customers “want companies to take a stand on issues they care about such as sustainability, transparency and fair employment practices.”
In recent years, the concept of an ethical supply chain has evolved from an extremely niche concern to a more broader and central pillar of corporate responsibility. Companies are increasingly recognizing that their supply chains are not just operational necessities but reflections of their brand values and commitments to society.
A 2024 ESG and Supply Chains trends report highlights that supply chains have become critical focal points for companies committed to environmental, social, and governance (ESG) principles, underscoring the importance of integrating sustainable and ethical practices throughout the supply chain.
Moreover, consumer expectations are shifting. According to a 2024 survey by PwC, consumers are willing to spend an average of 9.7% more on sustainably produced or sourced goods, even amid economic uncertainties. This willingness to invest in ethical products signals a broader demand for transparency and responsibility from brands.
Sustainability and fashion appear to be on opposing catwalks destined for collision. Fashion is a $2.5 trillion industry, producing 10% of global carbon emissions, 20% of global wastewater, and vast biodiversity loss. Consumers are demanding change, forcing sustainability in fashion as a requirement, not a trend.
The supply chain is no longer a back-office function that consumers have never heard of. Over the past ten years, it’s taken on a more forward-facing role that’s a competitive differentiator and part of the corporate business model.
Following are some questions that consumers are asking about brands and their supply chains:
To achieve real benefits, companies need to embed sustainability into their business practices and processes. Learn three ways to do it.
Not surprisingly, companies of all sizes are asking themselves if they need a responsible, ethical supply chain. The answer is an obvious “yes.”
In 2024, consumers are more informed and environmentally conscious than ever before. They demand transparency from the brands they support and increasingly prioritize products that are ethically sourced and sustainably produced. A recent study found that 85% of consumers are more likely to buy from companies that are transparent about their sourcing practices.
Ethical supply chains can help protect brand reputation, build long-term loyalty, and provide a better customer experience. It can even help boost the bottom line: Studies have shown that three-quarters of Millennials are willing to pay more for sustainable goods.
Moreover, it can lead to significant cost savings. A report by the World Economic Forum estimated that sustainable and ethical sourcing practices can decrease supply chain costs between 9% to 16%.
The tougher question, of course, is how to make it a reality. It’s certainly easier said than done. After all, the sheer scale and complexity of today’s global supply chains is mind-boggling.
Take Walmart, for example, which deals with over 100,000 suppliers — a massive network of manufacturers, distributors and subcontractors, from different countries with varying laws and regulations.
But companies that take a proactive approach are already showing it can be done. Patagonia, for instance, has implemented a comprehensive supply chain monitoring program and launched a “No Fees by 2020” roadmap to eliminate worker-paid recruitment fees — setting a precedent for accountability that resonates with consumers and competitors alike.
As consumer expectations continue to rise, investing in an ethical supply chain isn’t just a matter of values — it’s a strategic business decision. In fact, a 2024 survey by Gartner on supply chain networks highlights that 73% of organizations view ethical and sustainable practices as essential to long-term resilience and brand differentiation. That means doing the right thing isn’t just good PR — it’s risk management, competitive positioning, and future-proofing all rolled into one.
The good news is that research from APICS, Supply Chain Management Review, and Loyola University Chicago found that more companies are prioritizing ethical supply chains.
In fact, 83% of supply chain professionals said that ethics are extremely (53%) or very important (30%) to their organizations.
In addition, the Association for Supply Chain Management (ASCM) released new standards in June 2019 designed to “help customers assess the ethical, ecological and economic aspects of their supply chain.” Those who meet the standards are eligible to apply for the ASCM Enterprise Certification, a designation that demonstrates supply chain excellence and transparency.
“More than ever, consumers want to know that the products they buy are not only economically sound but also manufactured through practices that are ethically and environmentally conscious,” says ASCM CEO Abe Eshkenazi about the new standards. “Building these ‘triple E’ supply chains provide innovative companies with another platform to achieve competitive advantage, grow their market share and make the world better through supply chain – at the same time.”
In the years since, additional frameworks and expectations have emerged. ISO 20400, for example, now serves as the leading international guidance on sustainable procurement, helping companies align purchasing practices with ESG goals. Manufacturers such as LONGi have earned ISO 20400 certification, signaling a deeper commitment to ethical sourcing across global supply networks.
Regulatory pressures are also shaping new standards. The European Union’s 2024 Corporate Sustainability Due Diligence Directive (CSDDD) now requires companies to monitor and mitigate human rights and environmental violations in their supply chains—a move that elevates ethical compliance from voluntary initiative to legal obligation.
Together, these developments reflect a broader shift: from reactive to proactive supply chain ethics. Where certifications like ASCM’s provide recognition, frameworks like ISO 20400 offer structure—and legislation like CSDDD makes ethics enforceable.
Closed-loop production systems drive sustainability across the entire supply chain by eliminating waste and clearing the path for a circular economy.
There are many actions that need to be taken in order to move towards an ethical supply chain, including simplifying processes; efficient planning; visibility into supplier actions; optimizing transportation routes to reduce fuel consumption; monitoring environmental risks; and much more.
Technology is also an essential part: IoT sensors, blockchain, AI-driven bots and advanced real-time analytics can help detect risk, boost efficiency, reduce redundancies and improve planning.
In 2025, companies are increasingly leveraging advanced technologies to enhance supply chain ethics and sustainability. Artificial intelligence (AI) and machine learning are being employed to improve demand forecasting and identify potential ethical risks within the supply chain. Blockchain technology is gaining traction for its ability to provide transparent and immutable records, ensuring traceability of products from origin to consumer. For instance, Volvo has introduced a “battery passport” that allows customers to trace the origins of raw materials used in their electric vehicle batteries, promoting responsible sourcing practices.
Additionally, the integration of Internet of Things (IoT) devices enables real-time monitoring of goods, enhancing visibility and accountability across the supply chain. These technologies collectively contribute to more ethical and sustainable supply chain operations.
Researchers have found:
These figures underscore a growing commitment among organizations to embed ethical considerations into their supply chain strategies.
The top sustainability trends show how concern for the environment and the planet's future isn't limited to consumer buyers. More and more, it's driving B2B decision making.
As the landscape of supply chain management continues to evolve, integrating these technologies and practices becomes not just beneficial but essential for companies aiming to meet both regulatory requirements and consumer expectations. There is clearly more work to be done, but the key to success, say experts, is getting in the game for the long haul.
Clearly, it’s good for business — and those that don’t invest in it are at risk of being left behind.
