SDA 2026 Annual Conference: AI and ESG Driving the Future of Supply Chain

This high-end closed-door meeting brought together over 50 global industry-leading enterprises. The event adhered to the principles of “no photography, no publicity,” with all discussions strictly limited to on-site exchanges. We look forward to welcoming you in person at our next event.

On December 6, 2025, the SDA 2026 Annual Conference concluded successfully in Shanghai under the theme “Smart Procurement, Green Supply Chain, Co-creating a Low-Carbon Value Chain.” This grand gathering assembled leaders and experts from world-renowned enterprises. Centered on the two core drivers of AI and ESG, it fostered a profound and expansive exchange of ideas.

Converging Ideas: Anchoring Direction in an Era of Transformation

In her welcome address, Ms. Pamela Lin, Chairperson of SDA, highlighted that the supply chain is evolving from traditional dimensions like cost and efficiency to a new phase marked by “intelligence” and “green.” She emphasized SDA’s commitment to translating concepts into actionable strategies, helping enterprises achieve measurable and executable transformation paths.

Mr. Sean Wu, Vice President of Operations, APAC at RS Components and Chairman of the SDA Asia-Pacific Regional Council, further noted in his speech that the Asia-Pacific region, as a critical global supply chain hub, is entering a strategic integration period for AI and ESG. He stressed that only by systematically embedding both into operational processes can sustainability be transformed into a driver for growth.

AI is No Longer Just a Tool, But a Co-evolutionary Partner

In his keynote speech, Mr. Phil Xu, Vice President of 4flow and Chairman of the SDA Executive Council, analyzed the technological path for supply chains from automation to intelligence. He introduced the crucial “Five-Level AI Application Ladder” theory, pointing out that the industry has entered the L3 “Intelligent Agent” stage, where AI possesses reasoning and business execution capabilities. He envisioned scenarios of “human-machine collaboration” in procurement decision-making, redefining the boundaries of efficiency and intelligence.

Roundtable 1: AI Implementation, From Strategic Insight to Practical Challenges

In the “Intelligence and the Future” roundtable moderated by Ms. Selina Qu from Merck China, three hands-on experts engaged in an in-depth dialogue:

Lu Shan​ (Expert in “AI + Procurement & Supply Chain,” Deputy Editor of the Ministry of Human Resources and Social Security’s AIGC textbook) noted that biopharmaceuticals and embodied intelligence are the fields with the fastest AI adoption and highest capital interest. He advised companies to capture signals from national strategies and industry leaders’ moves.

Rachel Zhao​ (Former Chief Product Manager for AI at Apple) highlighted six major challenges for AI implementation from a product perspective: ambiguous requirements, data bottlenecks, uncontrollable models, complex collaboration, compliance risks, and user perception. She emphasized that “stability and controllability are superior to performance explosion.”

Tony Lv​ (Chief Technology Partner at Lenovo) called for companies to return to data fundamentals: “Before building intelligent agents, use AI to clean up SKUs and integrate knowledge bases. The value of foundational data far exceeds that of the models themselves.”

Behind the Trade War Lies the Logic of Value Chain Restructuring

In a macro-analysis, Mr. Wang Zhi, Founder of Dingqi Family Office, pointed out that Sino-US competition has transcended tariffs, evolving into a comprehensive contest involving technology, resources, and standards. He alerted enterprises to the risks of “secondary sanctions” and urged them to consider balancing technological autonomy with international collaboration.

The Path to Integration Under Dual Carbon Goals

In his speech, Mr. Shi An, President of Rockwell Automation, incisively noted that the Zero Carbon and Digital China goals are two sides of the same strategic coin. He introduced the concept of “Cognitive Productivity,” stressing that green initiatives must be combined with industrial efficiency gains to create new demand and break the cycle of involution. With its comprehensive industrial chain foundation, China has the potential to transform carbon constraints into a global opportunity for value chain reshaping.

From Concept to System: Connecting the Underlying Logic of Zero Carbon and Digitalization

In the ESG roundtable, Council President Zhang Lili, along with guests including Pamela Lin, Shi An, Song Jie, Wang Jideng, Cearo, and Sean Wu, delved into the underlying logic connecting zero carbon and digitalization. A consensus emerged: data is the foundation, technology is the enabler, while cross-domain cognition and leadership are the key bottlenecks. Guests shared challenges in intelligent operations within the cosmetics industry, automated AI applications in carbon management platforms, and cases like predictive maintenance for bearings. They concluded that true implementation requires breaking down vertical silos and building an ecosystem that fuses ESG with commercial value, thereby translating sustainability goals into tangible competitiveness.

Conclusion: The Future Belongs to the “Smart-Green Integrated” Supply Chain

This annual conference clearly conveyed one message: AI is the tool, ESG is the compass. Only by systematically integrating both can the supply chain evolve from a cost center into a value engine. In the coming decade, the dual-track of intelligence and green is not just about competitiveness, but a matter of survival.

SDA will continue to work hand-in-hand with industry peers to explore viable pathways and advance towards a sustainable future.