Sustainable Supply Chains and Operations

What is sustainable supply chain?

Sustainable supply chains involve integrating environmental, social and governance (ESG) factors into all areas of the supply chain, including extraction, manufacturing, procurement and distribution. Sustainable supply chains are efficient, resilient, equitable, circular, transparent and climate positive.

Why is it important?

  • Download our brochure for detailed information about Supply Chain and Operations.
  • Read our case studies here.
  • Download our brochure for detailed information about Supply Chain and Operations.
  • Read our case studies here.
  • Download our brochure for detailed information about Supply Chain and Operations.
  • Read our case studies here.
  • Download our brochure for detailed information about Supply Chain and Operations.
  • Read our case studies here.
  • Download our brochure for detailed information about Supply Chain and Operations.
  • Read our case studies here.
  • Improve business resilience ❯

    Improve business resilience

    Growing disruptions from geopolitical risks and economic volatilities are reshaping global supply chains requiring increased resilience to ensure business longevity.

    Risk management ❯

    Risk management

    Supply chains are increasingly subject to various risks, including human rights risks, physical climate risks and governance-related risks.

    Potential focus area of emissions ❯

    Potential focus area of emissions

    Supply chain emissions are 11.4% times higher than operational emissions, highlighting the urgent need to reduce emissions.

    Regulatory changes and pressure ❯

    Regulatory changes and pressure:

    Evolving legislative and regulatory reporting standards, which are incorporating more sustainable considerations, pose potential legal and operational risks for non-compliance.

    Support national ESG agendas ❯

    Support national ESG agendas

    Supply chains connect companies across borders. Alignment with various national sustainable plans, net zero targets and sustainable reporting standards is thus vital.

    Key challenges 

    Studies find high-performing companies are an exception rather than the rule in their journey towards sustainable supply chains.


    Malaysia Top 100 PLCs scored an average of


    on the maturity of supply chain sustainability

    PwC research, Oct 2022


    Global supply chains scored an average of


    on sustainability

    KnowTheChain 2020/ 2021 assessment


    Consistent gap between supply chain sustainability goals and corresponding investments from 2019 to 2021

    MIT’s State of Supply Chain Sustainability Report

    On top of that, companies face the following challenges:

    Navigating evolving legislative and regulatory requirements across all relevant jurisdictions

    Gathering accurate and reliable reporting data in compliance with elaborate sustainability reporting requirements

    Lack of access to necessary infrastructure and technological tools for effective carbon emission monitoring across the entire value chain

    Lack of financing solutions when accounting for potential climate-related risks such as flooding

    Ensuring just transition amid implementation of a sustainable supply chain

    How can PwC help?

    Maturity diagnostic

    Conduct a high-level assessment of existing supply chain initiatives and capabilities to understand the implications of transitioning to a sustainable supply chain for your organisation’s growth strategy and operating model.

    Inclusive sourcing

    Develop a framework considering key areas required for inclusive resourcing implementation

    Embed due diligence controls

    Develop a robust due diligence framework and controls to effectively identify issues within your organisation’s supply chain.

    Salience assessment

    Identify salient human rights risks throughout your organisation’s supply chain through stakeholder engagement and landscape analysis.

    Grievance mechanism

    Develop an operational grievance mechanism framework and process to collate grievances within your organisation’s workforce, along with procedures to rectify and address these grievances.

    Decarbonisation levers

    Develop a strategy to arrive at net zero and consider low carbon products within a supply chain.

    Supply chain tax and legal strategy and planning

    Provide insights and recommendations to navigate potential upcoming tax and legal developments related to supply chains to mitigate risk, optimise cost and seek growth opportunities.

    Case studies

    Global Aerospace Company

    Project description

    Sourcing renewable fuels for company operations.


    The client’s net zero ambitions plans included switching to biofuels as a renewable energy source. They needed a comprehensive understanding and long term view of the markets across multiple countries to ensure the switch to biofuels was a sustainable business plan, both financially and environmentally. 


    We assessed and ranked individual energy markets in relevant countries in terms of alternative fuel availability, current and forecast prices accounting for the different regulatory environment in different regions, changing incentives and tax regimes. 


    The client developed a clear understanding of the current market fundamentals including real-world fuel performance, regulatory requirements, and the capabilities of potential suppliers enabling them to engage with the appropriate fuel technologies and establish the necessary duration of contracts needed.

    Leading Regional Southeast Asian Airlines Company

    Project description

    Sustainable supply chain assessment and gap analysis to increase client’s corporate sustainability scoring.


    The clients operations and supply chain departments along with their suppliers did not have the appropriate understanding of ESG in order to effectively manage potential supplier sustainability risks.


    Training and knowledge sharing with leadership and all stakeholders to ensure the same understanding of sustainability and what it means for Supply Chains, along with an assessment of the clients current supply chain practices against PwC’s sustainable supply chain framework.


    The client obtained sustainable supply chain assessment findings identifying existing gaps in operations, benchmarking against peers to show best practices along with a roadmap highlighting initiatives across several years to improve sustainability supply chain practices.

    Leading Regional Southeast Asian Bank

    Project description

    Supply chain decarbonisation to meet climate ambitions.


    Skills and capabilities across the client were limited with regards to knowledge and understanding of scope 3 emissions and limited vendor Net Zero maturity and emissions data made it difficult to assess where to focus our efforts and what type of targets to set.


    An assessment of scope 3 supply chain emissions data and reporting maturity was conducted, after which a Net Zero ambition for supply chain emissions was set. A framework was developed through engagement with global category managers and contract owners to prioritise top vendors in high emission spend categories for engagement. Spend category and vendor specific emissions reduction strategies were then developed to achieve the defined ambition.


    The client obtained an overarching Net Zero ambition for supply chains, engagement with suppliers to pass on expectations of Net Zero and strategies to reduce emissions within supply chain.

    Contact us

    Redha Shukor

    Redha Shukor

    Partner, Sustainable Value Chains, PwC Malaysia

    Tel: +60 (3) 2173 1832

    Malar Odayappan

    Malar Odayappan

    Director, Sustainability and Climate Change, PwC Malaysia

    Tel: +60 (3) 2173 1188

    Follow us