Five reasons why sustainable value chains are good for business

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🗞️ Driving the news: In a new call to action, sustainability leaders from Philips, DHL, AVEVA, and ManpowerGroup outline five key reasons why sustainable value chains are not only critical for climate goals but also profitable and resilient business strategies
• Drawing on lessons from the World Economic Forum's Alliance of CEO Climate Leaders, the report urges immediate action on scope 3 emissions, collaboration, and workforce upskilling

🔭 The context: Scope 3 emissions—those originating from a company’s upstream and downstream value chains—often account for the majority of a firm’s carbon footprint
• Yet most companies lag in setting scope 3 targets, citing data gaps, regulatory uncertainty, and cost
• However, between 2019 and 2022, members of the Alliance of CEO Climate Leaders achieved a 10% aggregate emissions reduction, showing that ambitious climate action is feasible and economically viable

🌍 Why it matters for the planet: Sustainable value chains are essential to global decarbonisation efforts
• From digitising emissions tracking to enabling circular business models, these strategies help reduce waste, cut emissions, and support biodiversity
• Scaled adoption can transform entire sectors while building long-term climate resilience across global systems
• Workforce reskilling further ensures that the green transition is equitable and inclusive

⏭️ What's next: Businesses must go beyond compliance and embrace sustainability as a value generator
• Immediate actions include investing in data systems, integrating AI and automation for operational efficiency, partnering across industries, and upskilling employees
• New sustainability-linked financing models and transparent climate metrics will shape competitive positioning as regulations tighten, especially in the EU
• Companies that lead now will shape the standards and markets of the next decade

💬 One quote: “Sustainability is often perceived – and misconceived – as an added expense... but AI and automation can help businesses find and fix inefficiencies before they become major issues.” — Lisa Wee, Chief Sustainability Officer, AVEVA

📈 One stat: 94% of employers globally say they lack the skilled talent needed to meet ESG goals, while 70% are urgently recruiting green talent, especially in renewables, operations, and IT

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