With the increasing recognition of the importance of sustainability in society, companies are under pressure from stakeholders to reduce their environmental impact and improve their social and ethical practices. However, achieving sustainability in the supply chain can be challenging, as it requires coordination and cooperation among multiple parties with potentially conflicting goals and incentives. We discuss different forms of incentives and their implementation in environmentally leading companies’ practices. We further demonstrate that aligning incentives help ensure all parties work towards the same goals and are motivated to take actions that contribute to sustainability.
