EcoVadis: How Sustainability is Reshaping US Supply Chains

As US companies enter 2025, they face a challenging mix of geopolitical tension, regulatory confusion and worsening climate impacts.

Yet, behind the scenes, a quiet shift is underway. Corporate leaders are steadily investing in sustainability - not for headlines or awards, but to shore up their supply chains and gain long-term competitive advantage.

A survey of 400 US executives by EcoVadis, in its 2025 US Business Sustainability Landscape Outlook, highlights this trend.

Its respondents from companies with annual revenues more than US$1bn span procurement, supply chain, finance, sustainability, risk and compliance functions.

Supply chain sustainability

The clearest message from the research is the strategic repositioning of sustainability within supply chain management.

More than 65% of executives surveyed see sustainable supply chain practices as a source of competitive edge. They link it to faster growth, risk management, resilience, improved brand reputation and cost savings.

Meanwhile, fewer companies are publicising their sustainability strategies due to what the report calls “greenhushing” - a retreat from vocal environmental promotion - 87% of executives say they are maintaining or increasing their sustainability spend this year.

Among finance leaders, 52% believe that these practices support long-term competitiveness and growth. Only 19% still treat sustainability as a cost burden.

“Increasingly, sustainability is what keeps supply chains running and keeps customers on board,” says Pierre-François Thaler, Co-Founder and Co-CEO of EcoVadis.

This reflects a deeper operational shift, where sustainability becomes part of the supply chain infrastructure, rather than a marketing add-on.

Customer retention plays a major role, as 62% of directors and vice presidents and 59% of C-suite leaders agree that sustainable supply chains help attract and retain customers – particularly in industries where buyers expect robust due diligence on ESG matters.

Companies are now required to prove ethical, social and environmental responsibility throughout their operations, not just tick compliance boxes.

Regulatory pullbacks and rising risks

Despite the clear business case, concerns are growing around political uncertainty. Almost half of C-suite respondents (47%) warn that a rollback of ESG rules would disrupt supply chains and slow goods movement.

A further 41% anticipate that climate-related disruptions, without regulation, will push up consumer prices.

Sourcing and labour risks are also on the rise as two in five directors and vice presidents expect to shift sourcing to new regions or countries if ESG rules weaken, which could upend stable supplier relationships. At the same time, around 30% warn that deregulation could lead to mistreatment of workers and poor labour conditions.

The report adds: “Delaying supply chain due diligence increases risk and rush costs, while missed opportunities come from reactive compliance.” The firms best placed for success are those taking proactive steps now with sustainable procurement strategies already in place.

The role of technology

As regulatory pressure builds, particularly from the EU, Canada and states like California, compliance has become a sticking point.

The EU’s Corporate Sustainability Reporting Directive (CSRD), the Carbon Border Adjustment Mechanism (CBAM), California’s Senate Bill 253 and Canada’s Modern Slavery Act all require complex ESG data reporting.

Only half of affected US companies say they are on track to meet these demands. Many are stuck in a wait-and-see position, running the risk of falling foul of regulation or missing out on key markets.

In fact, a third (33%) of leaders admit they use estimated ESG figures to fill reporting gaps, showing a mismatch between ambition and evidence.

To close these data gaps, companies are turning to technology. More than half (57%) have adopted ESG risk mapping and supplier disclosure tools. Still, uptake of carbon-specific technologies remains low, with just 18% using Scope 3 carbon hotspot mapping tools.

Future plans indicate a continued push as 53% of executives intend to expand ESG risk mapping or disclosure tech over the next 12 months and 33% plan to increase investment in carbon tracking platforms.

Building resilience through data

The EcoVadis Index reveals that supply chain sustainability performance improves in 2024 after a flat period, suggesting that major US firms are embedding sustainable practices regardless of regulatory movement.

Yet, challenges remain. Resilience, the report argues, requires investment in practical tools that scale, real supplier engagement and detailed risk mapping. This marks a shift from broad, “light-touch” disclosure to robust, data-driven operations.

“Companies that act now – with the right strategy, partners and tools – will be best positioned not only to navigate disruption but to grow through it,” EcoVadis concludes.

In 2025, building a resilient supply chain means going far beyond compliance.

It demands embedding sustainability into procurement decisions, adapting to shifting regulations and investing in the technologies that turn policy into practice.