Transforming commodities, embedding sustainability in supply chains

ASIA is a critical source of global commodities such as rubber, palm oil, cocoa, and timber, playing a pivotal role in shaping international trade and business across various sectors, including manufacturing, consumer goods, automotive, and construction. The nominal value of the commodities market in Asia is currently projected to reach some US$32.17 trillion, reflecting a robust growth trajectory with a projected annual growth rate of 2 per cent from 2025 to 2029.

Yet, despite its economic and environmental significance, the commodities industry has lagged in keeping up with evolving ESG (environmental, social, and governance) expectations and sustainability trends. Why? The commodity industry has a much more complex ecosystem with more stakeholders – from smallholder farmers whose livelihoods depend on their trade, to large commodity giants and multinational corporations. The opaque nature of these supply chains, combined with cost efficiency being prioritised over sustainability historically, has made meaningful change challenging to implement. But, with mounting regulatory pressures, heightened consumer awareness, and increased investor scrutiny, businesses must act now to integrate sustainability into their operations.

This transformation is long overdue. Rather than focusing solely on short-term profits, companies in the commodities industry have begun to shift towards a model that integrates ecological restoration, community development, and economic stability. Fostering more resilient supply chains can help create a global economy that is better equipped to withstand market fluctuations, supply chain disruptions, and environmental challenges such as climate change. Enabled by technology that enhances transparency, supports ethical sourcing, and promotes regenerative practices, this shift empowers organisations to achieve long-term sustainability and profitability, and remain future-ready.