Expand Involvement in the Value Chain for Greener Outcomes
In most industries, the bulk of material and energy waste is tied up in the value chain, presenting a significant challenge—and an opportunity. While internal sustainability initiatives can yield results, applying these approaches across the broader value chain is essential to scale those outcomes. However, simply translating what worked internally to external stakeholders may not always be effective. The strategies ("what" and "how") may be similar, but the key stakeholders ("who") shift, requiring new messaging and approaches to achieve buy-in and measurable results.
To effectively drive sustainability across the value chain, businesses need to partner with three key external stakeholders: customers, suppliers, and peers. Interestingly, customers—especially in industries like food and beverage, appliance, automotive, apparel, and footwear—can often be the most profitable path to achieving sustainable outcomes.
Why Customers Might Be the Key
For many B2B companies, collaborating with large customers who are trailblazers in sustainability offers a quicker and more impactful path to success. These forward-thinking customers, often leading in sustainability efforts themselves, already understand the value of sustainable business practices. By working together, companies can tap into mutual goals without the need to invest significant resources in educating or convincing them.
While suppliers may seem like the logical place to start because of direct control over spending, the reality is more nuanced. In some cases, customer partnerships offer a more immediate and rewarding path. Proactively engaging with strategic customers on sustainability can strengthen business relationships and uncover new opportunities for collaboration.
Start by reading your customers' sustainability reports to identify areas where they are succeeding and where they are struggling to gain traction. Use this insight to initiate discussions on how you can help them improve, whether through developing greener products or optimizing logistics routes.
Leveraging Supplier Relationships
Suppliers also represent significant opportunities for collaboration on sustainability initiatives. Analyzing your supplier relationships and spend is a critical step in determining which suppliers are best suited for partnership. However, a high spend with a supplier doesn't always translate into them being the best choice for collaboration.
Instead, prioritize suppliers that have already set ambitious sustainability targets and have plans in place. These suppliers are often the best candidates for scaling projects quickly and delivering meaningful environmental and business results. Collaborating with suppliers who are already invested in sustainability can help both sides achieve more efficient and profitable outcomes.
Beyond the Value Chain
Achieving above-average sustainability results often requires expanding partnerships beyond the traditional value chain. Collaborating with like-minded peers outside your industry or within your community can unlock new opportunities for innovation. For example, companies within the same industrial park that hadn't previously interacted have partnered to repurpose waste products, turning one company’s "trash" into another’s treasure. These small adjustments can significantly enhance profitability for both parties while driving environmental benefits.
By expanding your network and working with new partners, businesses can gain fresh perspectives that lead to outsized sustainability results. This approach can create a competitive advantage by driving profitability while also advancing sustainability goals.
Scaling Sustainability for Greener Bottom Lines
Profitably scaling your sustainability initiatives across the value chain offers a clear path to driving above-average results in the years ahead. By proactively engaging with customers, collaborating with suppliers, and seeking new partnerships beyond your immediate industry, companies can unlock new opportunities for growth and impact.
Here's to pursuing a purposeful path that leads to a greener and more profitable bottom line!
Looking for resources on scaling your sustainability efforts across your value chain? This comprehensive how-to video provides actionable strategies to guide you through the complexities of scaling corporate sustainability plans—from ideation to execution. Discover practical tips to help you and your team achieve ambitious environmental goals while boosting profitability.