The Big Sustainability Lie: Why Technology Alone Won't Save Your Supply Chain


April 02, 2025

Businesses worldwide are racing to embrace digital transformation, convinced that technologies like blockchain, artificial intelligence (AI), IoT, and cloud computing are the ultimate keys to unlocking sustainability. However, beneath this enthusiasm lies an uncomfortable truth: digital technology alone will not make your supply chain truly sustainable. In fact, unmanaged or poorly implemented digital solutions can inadvertently hinder your sustainability journey.
In our latest special issue published in the International Journal of Physical Distribution and Logistics Management (IJPDLM), my colleagues Stefan Seuring, Samuel Fosso Wamba, Mathiyazhagan Kaliyan, Andrea Appolloni, and I challenge the simplistic assumption that digitalization automatically translates to better sustainability outcomes. Through rigorous research, we reveal that the real value of digital technologies depends fundamentally on how deliberately they are integrated into your overall sustainability strategy.

Uncovering the Hidden Costs of Digitalization

Take blockchain, often heralded as a revolutionary tool for enhancing transparency and accountability. While it can indeed provide unprecedented traceability and verification capabilities, blockchain also comes with substantial energy demands, raising serious questions about its net environmental benefit. Without careful management and strategic deployment, blockchain’s sustainability gains can be overshadowed by its significant carbon footprint.
Similarly, AI-driven automation and IoT solutions are celebrated for their efficiency, predictive analytics, and waste-reduction capabilities. Yet, these advancements can also amplify societal risks. For example, automation might improve logistics efficiency, but it also carries the threat of significant job displacement, potentially exacerbating workforce inequality and creating serious social sustainability issues.
Moreover, the increasing reliance on data-driven decision-making introduces complex governance challenges. Data collection at scale inevitably involves risks related to privacy, security, and ethics—issues many organizations overlook in their rush towards digital solutions. Mismanaged, these digital tools can compromise stakeholder trust, disrupt partnerships, and create new vulnerabilities in the supply chain.

From Technology Adoption to Strategic Integration

Our findings emphasize a critical shift in perspective. Technology adoption is only the first step, not the final destination. Successful supply chain leaders understand that digitalization’s true potential emerges only when it is thoughtfully embedded within comprehensive sustainability frameworks. This requires going beyond reactive compliance or piecemeal solutions. It demands a strategic, holistic approach where digital tools reinforce clearly articulated sustainability goals, robust governance structures, and active collaboration across all tiers of the supply chain.
For instance, blockchain’s effectiveness significantly increases when combined with strong governance practices that build trust among stakeholders. Likewise, AI and IoT deliver genuine sustainability gains only when they're part of a broader strategy to actively monitor, manage, and optimize resource efficiency across the entire supply chain ecosystem. Autonomous technologies such as drones or robotic automation can indeed improve operational efficiency, but proactive strategies are essential to mitigate social disruptions and workforce displacement.

A Managerial Reality Check

This special issue offers a crucial wake-up call for business leaders: sustainability initiatives powered by digital technologies are not standalone projects. They require deliberate planning, constant oversight, and active management of trade-offs. Managers must shift their mindset from viewing technology as an easy fix to recognizing it as a strategic enabler that necessitates careful integration, collaboration, and continuous adaptation.
Firms that succeed in this approach embrace transparency, accountability, and multi-stakeholder collaboration as central pillars of their digital sustainability strategy. They acknowledge the importance of balancing technological capabilities with ethical considerations, environmental stewardship, and social responsibility.

Turning Sustainability Ambitions into Real Results

Ultimately, sustainability isn't about ticking boxes—it's a strategic commitment demanding thoughtful planning, persistent effort, and resilient leadership. Our research underscores the importance of this shift and offers practical insights to help organizations navigate the complexities of digitalization and sustainability.
Are you ready to move beyond superficial sustainability promises and make meaningful, measurable progress?