SUSTAINABILITY  /  TECH & INNOVATION

By Kawal Preet | First published: April 19, 2024  Updated: January 12, 2026

Sustainability in business is becoming a core driver of competitiveness across Asia Pacific. By leveraging smarter data and fostering deeper collaboration, companies are finding new ways to enhance supply chain sustainability and drive growth in an unpredictable market.

• Businesses across Asia Pacific are using data and digital intelligence to strengthen sustainability efforts, enabling more efficient and responsible supply chains.
• Innovation is becoming a major catalyst for sustainable growth, as companies rethink how they move goods, reduce emissions, and respond to shifting customer expectations.
• Meaningful progress in sustainability requires industry collaboration and collective effort, which in turn creates the conditions for long-term competitiveness and resilience.

As businesses across Asia Pacific (APAC) face shifting demand, rising costs, and fast-changing regulations, one reality has become clearer than ever: sustainability in business is now one of the strongest drivers of growth. It shapes how companies strengthen their supply chains, attract customers, and remain competitive across borders.

APAC stands at the crossroads of industrial growth and climate action. Many regional businesses may still be wondering whether this is the right moment to double down. But stepping back now could mean missing out on the long-term advantages of building resilient operations and future-ready strategies.

Sustainability is now central to how companies expand, create value, and unlock new opportunities across APAC. Here are three key areas where businesses are making meaningful progress, and where long-term gains are most promising.

1. Data and digital intelligence fuel sustainable and efficient supply chains

More customers expect transparency around how goods move, and whether companies are actively reducing emissions along the way. Achieving this supply chain transparency requires access to accurate and timely insights.

Across our FedEx network, we see how near-real-time visibility helps companies understand their environmental impact and make smarter decisions. Data powers both operational and environmental intelligence. It shows where businesses can enhance efficiencies, reduce emissions, and plan more sustainable shipping strategies at scale.

For example, tools like FedEx Sustainability Insights provide customers with estimated emissions data for their FedEx shipments. When businesses gain access to this kind of intelligence, everyone benefits. Smarter routing, better packaging choices, and digital documentation all support sustainable shipping, helping companies operate more efficiently while strengthening revenue and customer trust.

2. Innovation accelerates sustainable growth and business competitiveness

The expectation for companies to adopt responsible and future-focused business models has grown sharply. Customers across all demographics expect action, not just commitment, and they reward brands that showcase sustainable innovation.

We’re seeing this in the fashion, electronics, and home goods sectors, where businesses experimenting with recycled materials, more sustainable production processes, or circular economy strategies are gaining market share. Such innovative practices are influencing both costs and consumer loyalty.

At a macro level, regional studies continue to show the scale of the opportunity. By adopting green industrial policies, strengthening decarbonization efforts, and increasing investments in sustainable technologies, the APAC region’s share of global GDP could reach 42% by 2040. For businesses, this underscores how sustainability drives competitiveness.

Central to realizing this potential is Innovation. New technologies, improved energy efficiency, and better infrastructure reduce operating costs while accelerating sustainable growth. Even in sectors where decarbonization remains challenging, incremental progress still creates meaningful impact.

FedEx, for example, continues to modernize its network, invest in fuel-saving initiatives, and procure sustainable aviation fuel (SAF). All of these contribute to longer-term gains for the wider logistics ecosystem.

We also see businesses exploring multimodal logistics by balancing air, ocean, and ground transport. When supported by digital visibility tools, these choices can reduce emissions without impacting delivery timelines, making sustainability practical even during uncertain business cycles.

3. Collaboration unlocks meaningful progress at scale

While many companies are advancing sustainability independently, the scale of the challenge requires broader collaboration. No single player – whether an individual business, regulator, or logistics provider – can solve systemic environmental issues alone.

Industry-wide cooperation is becoming more common, spanning emissions reporting frameworks, technology pilots, and research initiatives. FedEx, for instance, pledged USD 100 million to help establish the Yale Center for Natural Carbon Capture, which is exploring science-based solutions to reduce atmospheric CO₂ at scale.

This kind of cross-sector approach reflects the priorities of many businesses in APAC. Across the region, governments are stepping up support for greener infrastructure, next-generation renewable energy, and electric mobility. As companies align with these national priorities, the momentum behind sustainability continues to grow.

For our part, FedEx continues moving toward its goal of achieving carbon-neutral operations by 2040. But progress comes from collective effort, and the businesses that engage early will be best positioned to strengthen resilience, build trust, and expand confidently across borders.

Looking ahead: Sustainability as a business advantage

Sustainability can feel like walking a tightrope between environmental responsibility and business performance. Companies that embed sustainability into their supply chains, leverage digital insights for decision-making, and collaborate across industries are finding new ways to grow, even in unpredictable markets.

Whether it’s improving efficiency, strengthening customer loyalty, or unlocking new trade opportunities, sustainability in business is driving the next era of competitive advantage. For APAC businesses ready to scale, it remains one of the clearest pathways to long-term success.