More Sustainable Operations Are Also More Profitable – to the Tune of 23% 

Jenna Fink

Karishma Jobanputra

June 04, 2026 • 5 min read

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Afew weeks ago, Shein acquired Everlane. The result was consumer outrage, mainly because Everlane is known as a brand built on ethical manufacturing and broader supply chain transparency, while Shein, a fast-fashion disruptor, has been criticized for eschewing these tenets in favor of low cost, speed, and market share.   

The backlash pits two operational ideologies against each other, exposing a tension at the heart of modern retail: consumers want affordability and convenience, but many also want brands to operate responsibly. For supply chain and operations leaders, it begs the question: Is there a way to deliver affordability, speed, and sustainability – without adding operational costs?  

The Consumer Say-Do Gap 

In April, we surveyed 4,000 consumers across the UK and US to find out what consumer sentiment and behavior looks like in reality. Almost three-quarters (71%) of respondents said, when it comes to products for everyday life, how ethically it is made is either somewhat or very important. Yet when it comes to actual purchasing behavior, only 12-14% choose the most ethical option regardless of price.  

Amid rising living costs – the typical US shopping basket now costs around 10% more than it did three years ago – that huge gap isn’t likely to close.  In fact, we think it will widen. In other words, while consumers say they want ethical products, they want everyday low prices more. 

For supply chain leaders, this creates a challenge: sustainability needs to be built into the existing cost structure, not added on top. The good news? Zero100 data shows doing so is possible – and also profitable.   

The Business Case Isn’t Theoretical 

Earlier this year, we assessed 469 companies and found that Sustainability Leaders – those embedding sustainable operations across the enterprise rather than treating it as a separate function – earn 23% more in operating profit and 20% more in net profit than Laggards.And from 2022 to 2024, Leaders improved gross margins by nearly three percentage points while Laggards declined by 2.5 points. In other words, sustainability makes business sense. 

What separates Leaders and Laggards is integration discipline. Leaders averaged 47.8 months of sustained sustainability investment over a 48-month period. Laggards managed just 11.5 months. Leaders treat sustainability as a continuous operating priority, not a periodic initiative.  

The same is true for reporting: organizations with stronger emissions-reporting maturity, for example, score materially higher on the integration of sustainability metrics into day-to-day operating mechanisms, reinforcing the idea that maturity is not just about reporting sophistication, but also about whether sustainability is embedded in how the business runs. 

Waste Drives Cost and Carbon 

When Walmart optimized truck loading as part of Project Gigaton, it reduced both cost per shipment and emissions per ton-mile through the same decision. This is the reality behind the theory: though there are exceptions, often the “either/or” mentality between the best operational choice and the most sustainable one is not as stark – or even as real – as leaders might think.  

Our survey data shows that cost and efficiency rank as the top driver of sustainability strategy over the next 24 months, ahead of compliance and risk. Even among companies viewing sustainability as a competitive advantage, perhaps unsurprisingly, cost and efficiency came first. Being sustainable directly correlates with those priorities.  

Across supply chain functions, examples include: 

• Energy and raw materials: Inefficient production is expensive and carbon-intensive. Energy efficiency programs reduce utility bills and Scope 1 and 2 emissions in direct proportion. 
• Logistics: Optimizing routing, consolidating loads, and reducing empty miles lowers freight costs and emissions per shipment simultaneously. 
• Planning: Poor demand signals drive overproduction, which means more materials consumed, more energy spent, more waste generated, and more working capital locked in inventory that may never sell. 
• Inventory management: Excess stock ties up cash, drives markdowns, and creates disposal costs when products go obsolete – a direct emissions event. 

AI and Sustainability  

Alongside the organizational changes needed to operationalize sustainability – as we mention above, in the form of embedding it into sourcing decisions, supplier relationships, manufacturing location choices, and network design – AI is also an enabler.  

While AI infrastructure has a carbon cost, the answer isn’t to avoid technology. Rather, it’s about being deliberate about which technology you deploy and where. Not every sustainability problem needs generative AI or multi-agent orchestration. Our research highlights solution providers that embody this discipline and are purpose-built for specific jobs and goals, for instance: 

• Carbonfact, which uses data automation and scenario modeling to help apparel and footwear brands calculate product-level footprints and test lower-impact choices across materials, suppliers, production, and transport.  
• Climatiq, which uses AI-powered emissions mapping and carbon-calculation APIs to match messy business data, like purchase orders, BOMs, and invoices, to the right emissions factors for faster Scope 3 and product footprint calculations. 

The even bigger opportunity, however, is in decision support. When a planner chooses between two suppliers or two routes, they can now see the cost-carbon tradeoff in real time. A product team gains clearer paths to circularity and compliance. The same capability stack that automates reporting also enables teams to change the decision – and make an impact – before the emissions report is even generated. 

The Stakes Are Higher – and Many 

The companies that recognize the alignment between carbon, cost, and resilience are building more efficient, adaptable, and valuable supply chains. Winners are already operating on it.