Five reasons why sustainable value chains are good for business

Sustainability is a shared responsibility that demands coordination, collaboration and bold action. Success isn’t about isolated efforts; it involves aligning strategies, working with partners and taking meaningful steps toward lasting change. So, how do we clean up global value chains while keeping businesses thriving?

Value chains span the entire product lifecycle — from raw materials to customer use — impacting the economy, environment and society at each stage. Addressing scope 3 emissions means engaging with the entire ecosystem. Companies, however, have been slow to adopt scope 3 targets, providing a number of excuses for this, ranging from a lack of data and regulatory clarity to infrastructure problems.

In a fast-changing climate and regulatory environment, however, perfection isn’t the goal — progress is. A report by the World Economic Forum's Alliance of CEO Climate Leaders highlights a 10% aggregated emissions reduction between 2019 and 2022. This achievement demonstrates that sustainable growth is a tangible business value driver.

So, how do we move from theory and ambition to action? Achieving this kind of progress requires not only strategic alignment, but also co-creating solutions with stakeholders and fostering lasting behaviour change. Incorporating elements, such as gamification, can help engage teams and partners more deeply, making sustainability efforts more tangible, motivating and enduring. When members of the Alliance, including Philips, AVEVA, DHL and ManpowerGroup, met with sustainability experts from across various industries and non-profit organizations, such as Games for Health, We Mean Business Coalition and UN Global Compact, they devised the following checklist to drive scope 3 action immediately:

Sustainability leaders capture market share, improve customer retention and build resilient operations. DHL’s GoGreen Plus service, for example, enables its corporate customers to track and reduce their logistics emissions, positioning DHL as a strategic sustainability partner. AVEVA’s industrial software enables its customers to reduce their energy waste and carbon footprint, while increasing efficiency. Philips strengthens long-term relationships through circular business models, offering customers lower operational costs and access to the latest technology.

ManpowerGroup attracts top talent by aligning corporate values with sustainability-driven career paths, giving Gen Z and millennial workers a compelling reason to join. But, the talent shortage is real — 94% of employers globally say they lack the skilled talent to achieve their environmental, social and governance (ESG) goals, while 70% are urgently recruiting green talent, particularly in renewable energy, manufacturing, operations and IT.

Good intentions don’t cut emissions. Data does. Data-driven emissions tracking and real-time insights help companies find faster, smarter ways to reduce emissions, increase efficiency and cut costs. Successful sustainability leaders are rapidly pivoting sustainability to a business enabler, rather than treating it as a compliance checkbox or reporting exercise.

DHL’s GoGreen Plus solution provides customers with monthly high-quality reports with individualized emissions audited by an external auditor, ensuring in-depth analysis and official reporting.

For DHL operations, smart charging for EVs, energy and building management and AI-related route optimizations for fleets are all key drivers. AVEVA’s AI-driven analytics helps companies predict equipment failures, reducing unplanned asset downtime and energy consumption. Philips offers digital monitoring solutions for hospitals that optimize energy usage without compromising patient care. Then there’s the human side of data. ManpowerGroup uses workforce analytics to identify skills gaps in sustainability-related roles and helps companies integrate sustainability into daily operations.

Too often, companies focus on internal sustainability efforts while overlooking the broader value chain. The key to delivering systemic change lies in collaboration, with cross-industry partnerships, supplier engagement and leadership that balances long-term sustainable value creation with short-term gains being crucial to succeed.

Philips is helping customers with easy software upgrades and equipment returns, shifting from traditional product sales to service-based models, cutting waste and creating long-term value along the way. DHL adopts a similar mindset. Recognizing that transport emissions go beyond its own fleet, DHL supports subcontractors in transitioning to cleaner vehicles by offering attractive financing conditions from OEMs, access to DHL's gas station infrastructure and a strong partnership.

Sustainability is often perceived – and misconceived – as an added expense, with traditional financial models overlooking hidden environmental costs, such as emissions and resource depletion. Additionally, as regulation evolves — in the EU in particular — businesses must adapt to pricing and investment strategies that reflect the true cost of environmental impact.

Companies embedding sustainability into their core strategies are creating strategic advantages. They consistently reduce operational costs, attract investors and increase resilience.

Philips links its cost of capital to environmental performance through sustainability-linked financing. DHL reduces logistics costs by, e.g. investing in compressed natural gas (CNG) trucks and infrastructure, EVs for pick-up and delivery services and photovoltaic.

AVEVA develops AI-infused software to optimize the use of critical resources, transforming sustainability from a cost into a savings driver by reducing waste, lowering operational expenses and enhancing industrial performance. ManpowerGroup helps companies track green job trends and align talent development with future business needs.

Finally, beyond innovation, differentiation and financial incentives, scaling sustainability across value chains can only succeed if people are equipped to lead it. Every function must build sustainability into its mindset and skillset.

As more companies transition to low-carbon business models, demand for green skills in engineering, supply chain management and digital transformation is skyrocketing. Yet, this presents an opportunity and a challenge. While the green economy promises new roles, without proper support for reskilling, many workers fear these shifts could leave them behind, rather than open new doors. ManpowerGroup addresses this through targeted reskilling initiatives that ensure people see their place in the greener future, while companies get the critical talent they need to achieve their sustainability plans. DHL and Philips train employees in sustainability best practices, ensuring all teams – from managers to drivers to sales and procurement teams – can contribute to corporate climate targets.

The data is compelling: studies from Morgan Stanley, NYU Stern and Oxford’s Smith School show that sustainable businesses outperform peers in efficiency, resilience and risk mitigation. Companies aligning sustainability with business goals gain a competitive edge in a changing economy.

True sustainability activates the entire ecosystem, well beyond scope 3 emissions reporting alone, to help equip partners to reduce them. Companies that act today will lead tomorrow in climate performance, resilience, profitability and long-term success. Whether through smarter data use, stronger partnerships, financial innovation or workforce training, the tools to act are already here. Philips, DHL, AVEVA and ManpowerGroup demonstrate the possibilities when sustainability drives strategy and is not an afterthought.

This is the decade of delivery. Action is the only metric that counts. Supply chain transformation is already happening. Are you ready to lead it?