Imbalance in Global Supply Chains Undermines Climate Progress

Climate change has become a central focus of corporate strategy for many large companies.

A global survey of 2,600 chief executive officers found that 69% are already experiencing the impacts of climate change on their businesses.

In response, companies are investing heavily in strategies to monitor and reduce their greenhouse gas (GHG) emissions.

As they pursue these sustainability goals, many are also extending requirements to their suppliers — effectively transferring part of the burden down the supply chain.

However, new World Resources Institute (WRI) research reveals that while many companies are pushing their suppliers to meet climate targets, few are supporting the people within these supply chains who are essential to achieving those goals.

The human blind spot in supply chain sustainability

The WRI report, “Elephant in the Boardroom: People Are Missing in Corporate Supply Chain Goals“, identifies a major oversight in how large companies design their sustainability commitments.

After analysing more than 1,000 goals from nearly 700 global firms, researchers found that only 12% of companies have people-centred supply chain goals. These include measures to improve working conditions and safety, provide reskilling opportunities, support worker well-being, enhance education, and increase supplier diversity.

Even more strikingly, just 3% of companies have targets related to reskilling or upskilling workers, while fewer than 3% aim to improve working conditions. Fewer than one in ten companies design their goals in collaboration with suppliers — a missed opportunity to create mutually beneficial, long-term partnerships.

This imbalance of power between large buyers and small or medium-sized suppliers often results in low wages and poor working conditions. Many suppliers face pressure to produce high-quality products at minimal cost, limiting their ability to invest in sustainability and worker welfare.

Case studies: Companies prioritising people

While the overall picture remains uneven, several companies are leading by example.

Mars, Inc. — the producer of Wrigley chewing gum — has worked for over seven years with smallholder farmers in Uttar Pradesh, India, through its Shubh Mint programme.

The initiative, which focuses on sustainable farming and community support, has doubled mint yields, reduced water use by 30%, and significantly improved farmers’ incomes.

Tony’s Chocolonely, a Dutch chocolate company, is tackling inequality and exploitation in West Africa’s cocoa industry. It developed sourcing principles based on traceability, fair pricing, and long-term supplier relationships.

Through its Tony’s Open Chain initiative, the company partners with major brands such as Ben & Jerry’s and MrBeast’s Feastables to responsibly source 80,000 metric tonnes of cocoa by 2028 — while tracking child labour cases and ensuring farmers earn a living income.

IKEA is helping its suppliers transition to renewable energy by offering access to affordable, clean electricity. Its goal is to achieve 100% renewable electricity among direct suppliers, supporting them through power purchase agreements (PPAs), bundled contracts, and credible renewable certificates adapted to local markets.

Towards fairer, more sustainable supply chains

While many large corporations are setting increasingly ambitious environmental goals, a lack of focus on people in supply chains risks undermining overall sustainability progress.

As the examples of Mars, Tony’s Chocolonely, and IKEA show, investing in supplier relationships, improving worker well-being, and fostering collaboration not only enhance social equity but also strengthen operational resilience.

Recognising and valuing people throughout the supply chain is not only the ethical choice — it is also a strategic imperative for building a sustainable and inclusive global economy.

Read the working paper:“Elephant in the Boardroom: People Are Missing in Corporate Supply Chain Goals“