Reduce risk and improve resilience: Insights from Microsoft on advancing supply chain sustainability

Supply chains are at the forefront of improving sustainability around the world. But with the challenges of geopolitics, ever-changing regulations, and the need to adapt to disruptions, supply chain leaders are rethinking operations on many levels.   

At Microsoft, prioritizing sustainable practices with suppliers has also helped us uncover new opportunities for innovation and cost optimization.  

Our new guide, Reduce Risk, Create Resilience: Advancing Supply Chain Sustainability, outlines how data intelligence and collaboration can transform supply chains to be more agile, sustainable, and resilient. We offer lessons from our own experience as we strive to meet our ambitions to be carbon negative, water positive, and zero waste by 2030, all while protecting ecosystems. And we provide actionable insights and practical steps to help customers address reporting pressures, mitigate risks, and seize opportunities for innovation, ultimately driving resilience and long-term value.

Aligning data and systems for the road ahead 

Organizations are facing growing regulations and customer expectations to prioritize sustainable practices. To make meaningful change, organizations and their suppliers must share data and work together to address challenges across the ecosystem.  

Advanced analytics and AI are transforming supply chain sustainability at Microsoft. By leveraging these technologies, we accelerate day-to-day work, gain real-time insights, and drive co-innovation to meet sustainability reporting requirements as well as business continuity needs. 

For instance, our procurement team used Microsoft Cloud for Sustainability to centralize supplier emissions data and streamline processes. By integrating AI-powered automation, such as automated review of supplier assurance letters, we reduced survey processing time by 92%. 

Eckes-Granini, a European producer of name-brand fruit juices, is committed to ensuring that all its raw ingredients are sustainably sourced by 2030. The company used Microsoft Intelligent Data Platform including Microsoft Azure and Microsoft Power BI to connect to essential data sources and create precise visualizations of suppliers’ progress. This enables Eckes-Granini to track risks and follow up with suppliers accordingly. Now almost 70% of Eckes-Granini’s juice ingredients meet sustainability standards, and the company is better prepared to respond to Germany’s Supply Chain Due Diligence Act.

Choosing carbon-free electricity solutions 

Carbon-free electricity (CFE), such as wind, solar, and hydroelectric power, can be a powerful lever for decarbonization through improved fuel efficiency while helping to reduce exposure to varying fuel prices. These solutions can play an integral role in industry decarbonization goals, such as the International Maritime Organization’s target of reducing a 50% of their absolute CO₂ emissions from 2008 levels, by 2050.^{1 2} Organizations can help scale these efforts and the benefits of CFE in supply chains by launching supplier enablement programs.  

To help meet our own carbon reduction targets, Microsoft now requires suppliers to transition to 100% carbon-free electricity for the goods and services delivered to Microsoft by 2030. We’re making this easier for suppliers through our Supplier REach Portal, co-created with 3Degrees, to streamline access and procurement of CFE; and Zettawatts’ Supplier CFE Program, to provide assistance for reaching our CFE requirement, from understanding CFE procurement to discussing goals, developing plans and budgets, and reviewing agreements. 

Turkish energy company Enerjisa Üretim established a round-the-clock remote operation center that receives more than 50,000 signals per second from its large network of hydropower, wind, and solar plants. It processes the data using an Azure-based solution including Azure IoT Hub, Azure Digital Twins, and Azure Machine Learning. The solution delivers real-time monitoring and data analytics on power plant performance—all in one centralized location. It also uses Microsoft Azure OpenAI Service to forecast future outcomes, predicting average daily production for turbines for up to two months.

Creating new value from resource optimization 

The World Economic Forum estimates that adopting circular business models could unlock up to USD4.5 trillion in value by 2030.³ By adopting circularity, companies can not only help meet regulatory requirements but also drive new innovation, enhance their brand reputation, and differentiate their business. 

With a focus on the long-term value of resources, companies can uncover ways to reduce environmental impact while also increasing value for the business. Supply chains are central to this opportunity. 

To help meet our goal of becoming a zero waste company by 2030, Microsoft set a target of reusing or recycling 90% of our cloud hardware by 2025. We not only reached that target a year early—we exceeded it. In 2024, we reached a 90.9% reuse and recycling rate of our cloud servers and components.

Within our global datacenters, Microsoft Circular Centers are foundational to this work, enabling us to process and route decommissioned servers and hardware components to their next useful lives, such as internal reuse, other electronic supply chains, or academies that train datacenter technicians. 

Reinventing supply chain logistics  

Supply chain logistics challenges are bigger than any one company. To meet growing regulatory and market pressures, organizations need to leverage data and AI technology across their ecosystems and industries. Sharing data at a more granular level, they can identify opportunities to improve infrastructure and boost sustainability across whole logistics networks.  

Applying this principle, Microsoft has moved our cloud supply chain to renewable diesel in our road freight operations in Europe and California while keeping existing equipment in use. 

We’re also advancing aviation decarbonization by integrating sustainable aviation fuel (SAF) into shipments of cloud hardware. Through multi-year agreements, we’re working to reduce air freight emissions and help scale the adoption of SAF across the industry.³ 

Results so far include: 

• 50% lower emissions for road freight operations in Europe and California, using renewable diesel.
• 17,000 metric tons of carbon dioxide equivalents (mtCO2e) saved through SAF, compared to conventional transportation fuels.
• 73% lower relative carbon intensity of our cloud logistics supply chain since 2022 through lower-carbon transportation and logistics consolidation. 

Get started mapping your sustainable supply chains 

Supply chain sustainability is unique for every organization. Take the first steps by exploring the ins and outs of using data technology and collaboration to drive environmental reporting compliance, adaptability, customer and stakeholder satisfaction, and innovation.  

• Dive in with the guide: Reduce Risk, Create Resilience: Advancing Supply Chain Sustainability. 
• Explore Microsoft Cloud for Sustainability.
• Read about AI transformations for sustainability.

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¹ The Intergovernmental Panel on Climate Change (IPCC) defines decarbonization as: “The process by which countries, individuals or other entities aim to achieve zero fossil carbon existence. Typically refers to a reduction of the carbon emissions associated with electricity, industry and transport.” (IPCC)

² Decarbonized supply chains are resilient supply chains, McKinsey, 2022.

³ Circular Transformation of Industries: Unlocking Economic Value, World Economic Forum, 2025.

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Source: Microsoft Industry Blog