Tag: Climate Week

When we talk about sustainability in business, the focus immediately falls on emissions. Reducing environmental impact has become one of the most visible and urgent metrics on corporate agendas worldwide. The emphasis is on carbon footprints, reduction targets, and the clean technologies implemented internally. 

And this is no coincidence. Climate change is, without doubt, one of the greatest challenges we face as humanity. It is completely redefining what it means to be competitive and resilient, forcing us to look beyond our own operations. 

In this new context, the value chain has taken center stage. After all, this is where most of the impact occurs, from raw material extraction to final distribution. It is no surprise that supplier decarbonization is now seen as a strategic challenge. 

A KPMG survey confirms it. Three out of ten CEOs say that the complexity of transforming their supply chains is the biggest barrier to meeting their climate commitments. 

The problem, in my view, is not recognizing the challenge but how it is addressed.  

Instead of seeing suppliers as allies, many companies have chosen a simpler path: imposing requirements and shifting responsibility. They demand detailed reports, require certifications, and set strict deadlines. Yet this process rarely comes with real support or shared investment. 

A Model That Weakens the Foundation 

This unilateral approach carries serious consequences. A recent study found that, out of more than one thousand sustainability targets across nearly 700 global companies, only 12 percent focused on the people in their value chains. Moreover, most targets still follow a top-down pressure model directed at suppliers. 

This imbalance poses a huge risk. Most suppliers are small and medium-sized businesses that operate on tight margins. They have limited access to capital, technology, or the expertise required to implement deep changes. Facing these new demands without adequate support can push them out of the system. 

When a critical supplier is excluded, the ripple effects reach the buying company. Supply chains are disrupted, product quality suffers, and delays can compromise climate goals. Sustainability managed under this logic may show progress, but at the cost of weakening the social foundation that holds the entire chain together.  

It is a fragile structure that sooner or later creates vulnerabilities. 

Rebuilding Collaboration as a Strategy 

There are inspiring examples that show collaboration is the true driver of transformation. They remind us that progress happens when we work together. 

Take Mars, for instance. The company did not simply ask mint farmers in India to change their practices. It worked alongside them, providing technical support and training. The result was higher incomes and productivity for farmers. This not only strengthened local communities but also improved the quality and stability of Mars’ supply chain. 

Or look at Tony’s Chocolonely, the brand known for its ethical cocoa. Instead of keeping its model for traceability and fair pricing secret, the company shared it openly with other industry players. 

IKEA’s initiatives also illustrate this commitment. To help suppliers transition to renewable energy, the company created a program that gave them collective access to these resources. This broke down one of the highest barriers for SMEs: high costs and the difficulty of negotiating contracts individually. 

These examples teach us that sustainability becomes stronger when it is built hand in hand with the value chain, sharing benefits instead of shifting burdens. 

The rush to showcase progress has led many companies to forget the importance of collaboration. The urgency of meeting indicators has been prioritized over the need to co-create solutions with suppliers and communities.  

This is why I like to think of three guiding questions: Who is most affected by the transition? What benefits do suppliers and workers receive? Where is it best to invest to create mutual advantages? 

Framing goals through these questions changes the dynamic entirely. They stop being perceived as demands and become shared commitments that strengthen capacities across the chain. 

This shift not only makes it easier to achieve climate targets but also reinforces operational resilience, builds stronger trust among business partners, and opens new opportunities in markets that value corporate consistency.