sust.biz: Sustainable Value Chains - The Lifeline of Sustainable Business

The question of how businesses can truly integrate sustainability in products and supply chains has gained a lot of attention since the first edition of this book was published in 2015. Today, it is no longer a question if a business should be sustainable, but rather how fast the transformation toward sustainable business is happening. Heightened awareness of greenwashing and tighter regulations contribute to the expectation that sustainability needs to be real and trustworthy. Sustainability has moved from a context activity to a core element of the business strategy. However, new challenges have emerged that need to be considered to master the transformation toward sustainable business, where products are designed for circularity, being produced in carbon-neutral value chains, and being returned to natural or technical cycles at the end of their useful life. A future-fit business needs to be resilient, intelligent, sustainable, and efficient at the same time. While the transformation path to this state is still foggy for many companies, one thing is clear: Sustainable value chains are the lifeline of sustainable business. The business strategy is manifested in the value chain, i.e., in the products that are created and the global supply chains that are operated. They enable value creation within planetary boundaries. Sustainable value chains syndicate the areas of sustainability, product development, supply chain planning, manufacturing, service delivery, and collaboration with partners into a coherent operating model. Based on this operating model, all functions of a business can be engaged in the transformation toward sustainable business and economic, social, and environmental value creation. This chapter describes the drivers for change, the value that is created, and the building blocks of a business operating system with sustainable value chains as backbone and enabler for sustainable business. In addition, a practical method is proposed to accelerate the transformation toward sustainable business.