The increasing urgency of addressing climate change has necessitated the adoption of innovative technologies to monitor and mitigate carbon emissions and waste throughout the supply chain. This paper explores the role of digital tools and artificial intelligence (AI) in enabling real-time tracking and analysis of environmental impact at each stage of the supply chain. By integrating IoT devices, big data analytics, and machine learning algorithms, organizations can gain comprehensive insights into their operations, identifying key areas where emissions and waste can be reduced. The use of AI-powered predictive analytics allows companies to model various scenarios, optimizing resource allocation and operational efficiency while minimizing environmental footprints. This research also highlights successful case studies where companies have implemented these technologies, resulting in significant sustainability improvements and cost savings. Furthermore, the paper discusses the challenges associated with data integration, system interoperability, and the need for industry-wide standards to ensure effective monitoring and reporting. The importance of stakeholder collaboration is emphasized, as engaging suppliers, customers, and regulatory bodies is essential for achieving comprehensive sustainability goals. Ultimately, this paper advocates for the strategic implementation of digital tools and AI as pivotal enablers of sustainable supply chain management, providing organizations with the capability to adapt to changing environmental regulations and consumer expectations. By leveraging technology to monitor and reduce carbon emissions and waste, businesses can enhance their competitiveness while contributing to a more sustainable future.