Navigating Sustainability Shift

Those who have spent significant time in business, particularly in Supply Chain, have undoubtedly noticed how the landscape and conditions we operate in have changed over the last 20 years. The list of traditional business metrics for success – productivity, efficiency, quality, service, for instance – has not changed. However, the number of additional ‘criteria’ for business success has grown over the years: sustainability, retention of talent, greater competition, the competitiveness imperative and a tidal wave of regulation and policies. Customers and consumers are also increasing their demand for transparency and ethical business practices. These changes are driving the need for innovative business models, new ways of operating and the development of modern leadership competencies.

The speed at which new sustainability imperatives are affecting businesses is accelerating. The key question is how to prepare proactively, securing that coveted "first-mover advantage" rather than reacting too late. While many factors contribute to a successful sustainability strategy, knowledge is fundamental. Learning in the field has – and will – remain crucial but, given the complexity and rapid expansion and evolution of the subject I felt my knowledge needed an upgrade. This led me to consider several questions before choosing where to deepen my expertise:

• What exactly are we dealing with beyond the media "hype"?
• What risks and opportunities must Supply Chain and broader business strategies address within the sustainability space?
• Which external factors, such as legislation and government commitments, are shaping how businesses operate now and will operate in the future?
• What practical tools, models, and strategies can help businesses evolve sustainably?
• How must I grow as a leader to drive sustainability effectively within Supply Chain and business strategy?

These questions and many more were answered, and ‘blind spots’ were filled in through the Cambridge Sustainability Management Programme, which I recently completed. Below is some of what I learned that could be of benefit to a broader community and slightly more than what fits into a simple LinkedIn post.

The Evolving Narrative of Sustainability

Sustainability is a hot topic, with evolving terminology that’s moved from "global warming" to "climate change" and now "climate crisis." If you examine the United Nations Sustainable Development Goals (SDGs) - 17 goals and 169 targets that heavily influence global policies and regulations - you’ll find that only one goal explicitly mentions climate. THE 17 GOALS | Sustainable Development

Many other goals, particularly those focused on poverty, equality, and health, don’t receive the same visibility. For example, gender equality has more targets and actions assigned to it than climate action, yet the sense of urgency often feels more pronounced around environmental issues. This disparity raises questions. Poverty and hunger, for example, lead to displacement and increased demand on limited resources, contributing to overfishing and broader biodiversity imbalance. Inequality in terms of access to technology contributes to pollution, pointing to a dynamic in which developed countries address environmental problems more aggressively, while the regions most affected often don’t have the means to do so.

Having recently spent time in Nepal, I’ve seen first-hand the devastating impact of these issues on water and air quality. The sustainability agenda isn’t simple or one-dimensional; it’s incredibly complex, requiring time and effort to understand the interdependencies.

Well-Known and Overlooked Risks

Most businesses are aware of common sustainability risks, and many have mitigation plans in place:

• Resource Scarcity and Depletion: With finite natural resources like water, raw materials, and fossil fuels under pressure, businesses face rising costs and potential supply disruptions, impacting financial stability.
• Climate Change and Extreme Weather: Unpredictable weather disrupts operations, causing infrastructure damage, supply chain delays, and increased insurance costs.
• Regulatory and Policy Changes: Governments are enforcing stricter environmental regulations, such as carbon taxes and waste management policies, necessitating costly adaptations.
• Consumer and Stakeholder Pressure: Expectations for responsible practices are rising, with reputational damage, loss of market share, and diminished investor confidence at stake if businesses fail to meet these demands.

Many companies are now going further, exploring deeper and less obvious risks:

• Biodiversity Loss: Supply chain activities can disrupt ecosystems, impacting crucial services like pollination and water purification.
• Social Inequity and Labour Rights: Issues like modern slavery and inequitable wages pose legal and reputational risks, especially as consumer awareness grows.
• Supply Chain Water Risks: Scarcity and pollution in water-stressed regions threaten production and strain community relations.
• Technological Dependence and Cybersecurity: Digital supply chains are vulnerable to cyberattacks, with data breaches having the potential to halt operations.
• Hidden Pollution: Manufacturing by-products, like microplastics, have significant long-term impacts, often overlooked until stricter regulations force action.

A few companies take a more holistic approach, analysing potential future risks like stranded assets and mapping the impact on wider communities and issues like gender equality, poverty, and well-being. They employ systematic approaches to understand these risks comprehensively.

It was incredibly interesting to explore these and many other risks during the programme and to apply my expertise across planning, logistics, manufacturing, and the wider supply chain in working out effective solutions. For example, unexpected weather patterns and their impact on material availability (i.e. crop yields) can be partially mitigated through emerging artificial intelligence planning solutions. These systems enhance demand planning and material requirement calculations, while also allowing for built-in alternatives and replacements. In the logistics space, the sustainability risks go beyond just carbon emissions. Modern challenges include the inefficiencies and environmental impact of last-mile delivery. This can be addressed with innovative solutions like micro-fulfilment centres closer to urban areas and advanced data-driven logistics platforms that optimize deliveries to reduce energy use and traffic congestion. With the rise of predictive analytics, logistics companies can now use real-time data to anticipate disruptions—such as port congestion, natural disasters, or geopolitical events—and proactively adjust routes or shift to alternative transportation modes. Additionally, investments in blockchain technology can increase supply chain transparency, helping to ensure that every link in the chain adheres to sustainability standards, from raw material sourcing to final delivery.

From Risks to Opportunities

The rapid evolution of sustainability presents not just risks but also opportunities. During my studies, I explored ways to convert risks into commercial opportunities.

For example, I looked into labour practices and compliance risks within manufacturing processes. In a nutshell, offshore production involves complex supply chains with varying labour practices. We know that poor practices can lead to human rights violations and non-compliance causing scrutiny from regulators and advocacy groups, coupled with consumer awareness, and can damage reputation, incur legal penalties, and erode customer trust. However, enforcing ethical labour standards across the supply chain and partner with certified ethical manufacturers ensuring fair labour practices and compliance with labour standards, will enhance brand image and customer trust, secure stable relationships with ethical suppliers, reduce supply chain disruptions, and attract ethically conscious customers while workers receive better conditions and fair wages, improving their quality of life. It also provides an access to financial incentives that were introduced by governments and financial institutions.

Another example of turning the risk into opportunity sits within waste management space. I looked into the clothing company, where used clothing disposal contributes to landfill waste and pollution. The business model didn’t address the end-of-life phase adequately and was facing the risks of increased awareness and regulation on waste management leading to financial penalties and loss of consumer trust without established effective recycling and disposal solutions. In this case, implementing Circular Economy Practices, like product take-back schemes and in-house recycling/upcycling programs will solve this risk and offer a new commercial opportunity by generating new revenue streams through resale of recycled/upcycled products and lowering waste disposal costs. This closed-loop system will minimize environmental impact significantly. Other upsides would include employees acquiring new skills in recycling/upcycling, enhancing job satisfaction and customers enjoying the convenience and environmental benefits of product return programs.

Driving Systemic Change

To seize these opportunities, businesses must revolutionize their models, not just tweak them. This requires:

• Rethinking sustainable design and technology.
• Innovating business models to adopt a cradle-to-cradle approach.
• Activating sustainable manufacturing practices.
• Collaborating with financial institutions, governments, communities, and academia to ensure a viable model.
• Repositioning products and services to attract new, sustainability-focused markets.

When sustainability is embedded into the very core of a business, rather than treated as a side puzzle piece, the entire strategy becomes more robust and impactful. Real change happens when C-suit and leadership teams “live and breathe” sustainability every day, when decisions are consistently made and communicated in line with sustainability commitments, when budgets genuinely support those intentions, and when the rest of the organization starts believing in and acting on the strategy.

As we studied the examples in the Cambridge programme, we saw more and more cases of business model revolutions, and one of my favourites is Patagonia’s, for its clear example of ‘doing good and making money’.

Barriers and Strategies to Overcome Them

Driving sustainability change is not without its challenges. In my experience as a supply chain leader, I’ve encountered a few. While working on the case study during the programme, I concentrated on three significant barriers that often stand in the way of progress:

• Financial Constraints: Implementing new technology, processes, and innovations requires both time and money. Most companies, particularly publicly listed ones, are under pressure to deliver strong quarterly results, and any investment in sustainability might be viewed as “taking away” from the immediate bottom line.

Strategy to Overcome: One approach that has proven effective is prioritizing self-funding initiatives to demonstrate that sustainability solutions can, in fact, reduce operational costs. For instance, implementing backhauling strategies—where empty trucks on return trips are used to carry loads—reduces vehicle kilometres and fuel consumption. This lowers transportation costs and CO2 emissions, (and sometimes creates the whole new revenue stream!) The cost savings generated can then be reinvested into other projects, like an Advanced Planning Solution (APS) implementation. This, in turn, will enhance the demand forecast, supply and material planning practices and outcomes, resulting in more efficient resource acquisition, distribution, reduced waste and obsoletes, whilst adding to the business resilience. Presenting these benefits in a well-structured business case is crucial to winning leadership support.

• Disconnect from the “WHY”: Often, people genuinely don’t understand why solving sustainability challenges is crucial. They may struggle to see how their specific roles contribute to larger organizational goals, leading to low engagement or even resistance.

Strategy to Overcome: To tackle this, I’ve found that delivering easy-to-digest, engaging sessions tailored to different audiences makes a real impact. One of the great leaders I used to work for used to say: “Don’t eat an elephant at once”. He was right. Breaking down the big picture into relatable, bite-sized insights helps people understand the significance of their contributions. Partnering with the Learning and Development department can elevate these sessions into a company-wide program, appealing to HR by also driving skills development and professional growth. Reminders from credible “ambassadors” enhances this discovery journey in a positive way. Make it fun to learn and discover!

• Disconnect with HOW: Even when people understand the importance of addressing sustainability challenges, they can feel overwhelmed and unsure of how to take practical steps. The enormity of the task can be paralyzing, leading to disengagement.

Strategy to Overcome: Clear, consistent communication is key. Explaining the benefits of proposed solutions and outlining the steps for implementation, while also showcasing real-life success stories, makes the path forward more accessible. Highlighting positive examples of how similar initiatives have worked elsewhere boosts confidence and encourages buy-in, particularly from teams directly affected by the changes. Active endorsement, support and commitment from the leadership secures faster adoption of the change.

In addition to new approaches, strategies and expanded toolkit for driving sustainable change, it was especially rewarding to see that the solutions I had the opportunity to deploy at different points in my career so far were exactly what was needed to solve the case studies we faced during the programme. This reinforced the effectiveness of combining newly acquired knowledge and skills with practical, experience-driven approaches when it comes to solving the sustainability challenges.

Dilemma and Tensions in Sustainability

What is quite noticeable, on this sustainability journey, many tensions will arise and test the business’ commitment, creativity and perseverance. I find it fascinating to observe them from “human” point of view, for example:

• Balancing consumer demands for new products with the environmental consequences of overconsumption.
• Navigating conflicting sustainability goals, like community protection that might increase carbon emissions.
• Prioritizing issues, such as choosing between labour-intensive, low-tech solutions versus high-tech, productivity-driven approaches.

These dilemmas require deep impact analysis and collaboration among experts. Fortunately, tools like the OECD Sustainable Manufacturing Toolkit, the Cambridge Value Mapping Tool, and AI solutions are increasingly available.

The Shift to Sustainable Leadership

Finally, the difference between traditional and sustainable leadership is non deniable. Sustainable leaders are required to drive the business outside of standard performance into people-profit-planet dimension. They demonstrate traditional leadership excellence, but they also possess unique qualities that make them stand out as sustainable leaders:

• They understand that businesses are interconnected with societal and environmental systems, making decisions that create lasting, positive impacts beyond their organization.
• They leverage sustainability as a competitive advantage by embracing complex, forward-thinking strategies.
• They actively seek diverse perspectives, including from competitors, to gain a holistic view and drive industry-wide progress.
• As bold innovators, they challenge traditional business models, creating ground-breaking solutions with global potential.
• They commit to ambitious, long-term goals, remaining steadfast even when faced with short-term pressures.
• They are excellent change agents!

The last and final assessment during the Cambridge programme was developing sustainability action plan for chosen business and demonstrate the knowledge, skills and competences acquired throughout the study period, as well as to demonstrate personal evolution from traditional leader to sustainable leader.

Having completed the programme, I can say confidently, that my understanding, knowledge, practical skills as a sustainable leader and change agent expanded considerably. And even though it was tough going at times with the amount of research, assignments and tests which needed to be completed on top of day job and family commitments – it was totally worth it.

Final Reflections

… and as a reminder to self (and maybe others):

Stay Humble. We don’t know what we don’t know. Stay humble. Don’t assume, learn, seek to understand.

Collaborate. We can’t do it alone. Collaborations and partnerships are essential in changing the business models to create a wider positive impact and ensure business continuity and economic stability.

Evolve. As SC and business leaders we have to evolve. Traditional leadership which got us here, won’t get us where we need to be, soon.

Let’s drive change together—because the journey to sustainability is one we all share.