Sustainability


sustainability by increasing recycled content requirements for products and addressing barriers such as costly reverse logistics. Te regulation also encourages supply chain efficiency to reduce costs and improve long-term planning for incorporating recycled materials into production cycles. Starting in 2025, ESPR will require companies to report on


unsold goods and by 2026, it will ban the destruction of unsold products, initially targeting the clothing and footwear industries, with potential expansion into other sectors such as electronics. In addition, to improve recyclability, ESPR targets ‘substances of concern’ – such as chemicals – that may hinder product recyclability or reuse, and companies must achieve full supply chain visibility and collaborate with suppliers to ensure they address these requirements. Ten there’s the Corporate Sustainability Reporting Directive


(CSRD), another EU Directive which aims to standardise the way businesses carry out sustainability reporting. Te CSRD is designed to provide stakeholders with detailed, comparable and reliable information about companies’ environmental, social and governance (ESG) impacts and performance. It also expands the number of companies required to report on sustainability, covering large EU companies, listed SMEs and non-EU companies with significant operations in the EU. Tis has now been in force for two years, and the first companies had to apply the rules for the first time in the 2024 financial year, with reports published in 2025. Looking a little further ahead, 2027 will see the introduction


of new EU rules to empower consumers for the green transition. When this comes into force, before buying a product, consumers will receive better and more harmonised information on its durability and reparability. Companies must also provide better information to consumers about their guarantee rights, while “vague environmental claims will be forbidden, meaning that companies will no longer be able to declare that they are ‘green’ or ‘environmentally friendly’ if they cannot demonstrate that they are.” In addition, the use of “unreliable voluntary sustainability logos” will be banned, and unfair commercial practices linked to early obsolescence will be prohibited, including false claims about the sustainability of an asset. Let’s be in no doubt, these are highly significant pieces of


legislation that are intended to help drive a global shiſt towards sustainability and a circular economy. In particular, by enforcing transparency, accountability and sustainable practices across industries, many businesses are now required to redesign products, improve supply chain management and integrate sustainability into core operations.


The role of advanced technology Addressing these various requirements can be a complex undertaking. Among the most important processes is an organisation’s ability to maintain a sustainable and robust supply chain, without which they can’t hope to deliver a holistic strategy. Supply chain sustainability is characterised by the integration of environmentally and socially sustainable practices at every stage across the whole chain for minimal impact on profit and the planet. At its simplest, this means integrating potential financial and environmental repercussions into existing decision-making


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processes. But much more than this, it involves optimising resources, reducing waste, ensuring ethical sourcing, enhancing risk management, complying with regulations, fostering innovation, and engaging with stakeholders in achieving broader sustainability goals. Given the highly complex and interconnected nature of


contemporary supply chains, optimising sustainability is increasingly dependent on advanced technologies to bridge the gap between objectives and impact. It will come as no surprise that AI- powered systems are being rolled across supply chain ecosystems and are driving significant improvements in the way organisations can approach sustainability at every level. For example, the technology is increasingly used to provide end-


to-end visibility across all supply chain tiers, enabling companies to trace materials, assess environmental impact and ensure regulatory compliance. AI-driven solutions are also helping to minimise surplus production, forecast short shelf-life products and optimise energy usage in transportation and warehousing, significantly reducing environmental impact. AI can also optimise supply chain flow, improving operational efficiency via processes such as dynamic slotting, real-time inventory management and transport management – each of which contributes towards lower emissions and fuel consumption. In addition, technology solutions reduce the complexity and cost of reverse logistics by identifying network efficiencies, an approach which supports the recovery and reuse of post-consumer and post-industrial materials for recycled content. Bring all these elements together, and there has never been a better opportunity for businesses to deliver on the positive impact that the circular economy can bring.


Blue Yonder and the circular economy At Blue Yonder we take a holistic approach to helping customers prevent waste at every point in the supply chain. For customers, using forecasting, demand planning and


inventory management solutions prevents over-ordering and reduces waste. Replenishment and dynamic pricing capabilities help grocery retailers, for example, price products dynamically, reducing spoilage and waste. Trough optimised inventory planning, these solutions improve shelf availability while avoiding waste of excess inventory. Soſtlines customers are avoiding overproduction through


intelligent inventory planning that accounts for seasonal variability, trends and local weather conditions. Tese planning solutions help fashion companies address the up to 5 billion excess garments produced each year and enable compliance with EU regulations prohibiting disposal of unworn garments. Our warehousing solutions empower customers to manage


inventory to avoid disposal of obsolete and expiring products. Tese solutions track inventory age among many other attributes to ship products before they can become waste. In addition, our reverse logistics solutions are designed


to manage returns efficiently, allowing for the recycling or refurbishment of returned items. Our digital returns solution eliminates transportation legs and avoids packaging and paper waste by consolidated shipments.


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