Why Supply Chain Traceability Is the ESG Priority No One Can Ignore in 2025

As ESG commitments grow more visible and regulations more demanding, a quiet but critical issue is rising to the surface: supply chain traceability. Many companies feel confident in their ESG strategy because they’ve calculated Scope 1 and 2 emissions, published a sustainability report, and ensured their direct suppliers sign off on compliance forms.

But in reality, that’s just scratching the surface.

Most ESG and regulatory risks lie beyond Tier 1 — hidden in raw material sourcing, subcontracted manufacturing, and disposal networks. Without visibility into these deeper tiers, organizations leave themselves open to reputational damage, non-compliance, and costly rework.

And the regulatory landscape is catching up. The EU Battery Regulation requires Digital Product Passports by 2027 for all industrial and EV batteries — mandating full material traceability, from mining to second-life reuse. Meanwhile, frameworks like the CSRD and SEC climate rules are raising the bar on supply chain data expectations, including Scope 3 emissions and lifecycle impact assessments.

It’s no longer enough to say you believe in sustainability. You’ll need to prove it — with data.

At Marklytics, we help OEMs and suppliers close this gap. Our platform connects real-time traceability data with compliance-ready dashboards, enabling teams to map complex supply chains, automate reporting, and verify ESG metrics down to individual battery components. From tracking black mass recovery to tagging materials with QR-based Digital Product Passports, we bring transparency to systems that were previously invisible.

Traceability isn’t just a compliance requirement — it’s a strategic advantage.

The companies that act now will be the ones trusted tomorrow.