Sustainable supply chains: achieving a nature-positive future

Given the growing environmental and social demands, sustainability has become a determining factor for companies’ resilience and competitiveness. In addition to responding to regulations and market expectations, the transition to more responsible supply chains also presents an opportunity to mitigate risks, optimize resources, and create a positive impact. Below are the essential strategies for building sustainable supply chains, promoting a balance between operational efficiency and environmental commitment.

Moving beyond traditional sustainability

Traditionally, sustainability has focused on minimizing the negative impact of human activities on the environment and society. However, in light of current environmental challenges, namely climate change and biodiversity loss, it is necessary to adopt more proactive approaches that can both mitigate damage and regenerate and revitalize ecosystems.

What are nature-positive supply chains?     

A nature-positive supply chain goes beyond environmental risk management and simple compliance with regulations. Its goal is to create a positive impact on biodiversity and ecosystems throughout the entire product lifecycle. This requires companies to:

• Understand their full ecological footprint, from raw material extraction to the end-of-life of products.
• Use regenerative resources, such as replacing fossil-based materials with sustainable alternatives.
• Apply circular economy principles to increase material reuse and recycling while extending product life cycles.
• Reduce dependence on scarce resources, such as freshwater.
• Collaborate with suppliers, customers, and local communities to restore natural habitats and promote regenerative agricultural and industrial practices.

The transition to nature-positive companies demands innovation and long-term strategic commitment. Companies leading this transformation not only ensure sustainable access to raw materials in the future but also position themselves more competitively in a market where consumers, investors, and regulators are increasingly focused on environmental issues.

Aligning profit and planetary health

For a long time, economic growth and environmental conservation were seen as opposing forces. However, the most innovative companies now demonstrate that sustainability and environmental regeneration can drive growth and profitability. Nature-positive supply chains contribute to ecosystem resilience and unlock new business opportunities. Some of the competitive advantages include:

• Reducing risks and operational costs through greater resource efficiency and less reliance on scarce or volatile raw materials.
• Accessing new markets and customers increasingly demanding sustainable and ethical products.
• Attracting investors and sustainable financing, as adopting regenerative practices aligns with ESG (environmental, social, and governance) criteria.
• Attracting and retaining talent, as skilled professionals increasingly seek companies with a clear purpose and a genuine commitment to sustainability.
• Proactively meeting environmental regulations that will become increasingly restrictive in the coming years.

Companies that integrate ecological regeneration into their strategy mitigate climate and environmental risks and build more robust and future-ready supply chains.

Integrating climate resilience and regenerative practices    

The increasing frequency of extreme weather events and the degradation of ecosystems require companies to rethink their sustainability strategies. It is no longer enough to reduce emissions and minimize environmental damage simply; it is essential to adopt approaches that make value chains more resilient.

Weathering climate extremes   

Climate change is increasing the frequency and intensity of phenomena such as heatwaves, floods, droughts, and wildfires, putting infrastructure, operations, and supply chains at risk. To ensure business continuity and minimize economic impacts, companies need to implement a structured climate resilience strategy. Adapting to climate risks should follow a strategic plan:

• Analyze climate risks: Identify how climate events could impact company operations, including floods, extreme heat, storms, and droughts. Conduct a detailed analysis to determine which assets are most exposed to climate risks. These may include factories, warehouses, offices, critical infrastructure, or even strategic suppliers.
• Assess climate vulnerability: Evaluate the level of exposure and sensitivity of each asset to extreme climate events. This can include factors such as proximity to flood zones, the impact of high temperatures on production processes, or the vulnerability of critical infrastructure to storms.
• Quantify operational and financial impacts: Rigorously assess how climate risks may affect the company’s operations and economic performance. This includes productivity losses, damage to the infrastructure, supply chain disruptions, and impacts on the company’s reputation.
• Define effective adaptation and resilience measures: Based on the risk analysis, implement solutions to mitigate impacts. These measures can include building more resilient infrastructure, developing contingency plans, diversifying supply chains, and enhancing water and energy efficiency.

Companies can also collaborate with public entities to develop more comprehensive adaptation plans through global cooperation. By adopting a proactive, data-driven approach, companies can not only reduce the climate impacts on their operations but also gain a competitive advantage, ensuring a more resilient and future-ready value chain.

Embracing circular economies 

Transitioning to a circular economy is one of the most effective ways to reduce pressure on natural resources. Instead of the traditional linear model of “take, make, dispose,” the circular economy promotes a system where materials are continuously reused, recycled, and regenerated. For this transformation to occur, companies must:

• Reduce material waste by reusing and recycling components in production processes.
• Develop products with modular and recyclable designs, making it easier to disassemble and reuse materials.
• Create reverse logistics systems to enable the collection and reintegration of products into the production cycle.
• Encourage business models based on leasing and sharing, reducing the need for excessive production.

In addition to environmental benefits, adopting circular economies allows companies to reduce costs, increase efficiency, and meet the growing demands of consumers and regulators for sustainable products.

Empowering communities and building equitable partnerships       

The transition to a more sustainable economic model cannot be achieved in isolation. Collaboration between companies and local communities is crucial for creating more resilient and balanced value chains. However, for equitable partnerships to be effective, it is vital to ensure that all parties benefit from the process and that relationships are built in a fair and just manner.

Mutual benefits of inclusive collaboration

Creating sustainable value chains requires a genuine commitment to collaborative practices that generate equitable benefits for all parties involved. Local communities play a crucial role in the sustainable management of natural resources, contributing to the preservation of forests, watersheds, and agricultural soils. Partnerships based on transparency and benefit-sharing reduce supply chain risks, helping to mitigate price volatility and socio-environmental conflicts.

Additionally, investing in these communities’ empowerment and fair compensation drives local economic development, strengthens the economy, and reduces inequality. Direct engagement with these groups also facilitates the achievement of environmental and social goals, ensuring greater alignment with ESG and regulatory requirements. More than just a risk mitigation strategy, inclusive collaboration represents an opportunity to generate sustainable value and create a lasting positive impact.

Strengthening social and cultural ties

Strengthening social and cultural ties both within and outside the organization plays a crucial role in creating a resilient and responsible business ecosystem.

By fostering a work environment based on shared values, diversity, and inclusion, companies can increase employee engagement. Furthermore, investing in strong relationships with the community and stakeholders enhances the company’s reputation.

Practices such as volunteer programs, partnerships with social organizations, valuing cultural identities in the workplace, and local development initiatives are effective ways to integrate social and cultural sustainability into corporate strategy.

Leveraging technology for transparency and efficiency  

Digitalization and technological innovation are transforming how companies manage their supply chains and operations, making them more transparent, efficient, and resilient. Technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), Blockchain, and Digital Twins enable continuous monitoring and more informed decision-making, reducing waste and optimizing resources.

These solutions improve the traceability of materials and products and help anticipate risks, enhance operational efficiency, and ensure greater compliance with environmental and social requirements.

Real-time monitoring with AI and IoT  

The combination of Artificial Intelligence (AI) and the Internet of Things (IoT) enables continuous monitoring of production and logistics processes, resulting in greater efficiency and reduced waste. IoT sensors can collect real-time data on energy consumption, water quality, carbon emissions, and the condition of raw materials. At the same time, AI algorithms analyze this data to predict failures, optimize workflows, and identify opportunities for improvement.

This approach enables companies to respond promptly to issues, reduce operational expenses, and improve sustainability. Additionally, the supply chain transparency enabled by these technologies strengthens trust among companies, regulators, and consumers, ensuring environmental practices are correctly followed.

Blockchain and digital twins      

Blockchain is revolutionizing traceability by ensuring that all transactions and product movements are securely and transparently recorded. This technology allows for tracking the origin and journey of materials throughout the supply chain, ensuring compliance with environmental standards and eliminating fraud.

Digital Twins, on the other hand, create virtual replicas of factories, logistics systems, and industrial processes, allowing for the simulation of scenarios and testing of improvements before actual implementation. When combined with AI, Digital Twins help predict failures, optimize resource usage, and reduce waste, making production more efficient and sustainable.

Adopting these technologies improves operational efficiency and decision-making and ensures greater transparency and traceability—essential for companies seeking sustainable supply chain management while aligning with a more responsible economic model.

Challenging industries that can reverse nature loss  

The transition to a sustainable development model is both an environmental necessity and an opportunity for innovation and value creation across various sectors. Some industries, traditionally associated with high environmental impacts, are implementing solutions to mitigate their adverse effects and become driving forces of sustainability.

Two of the most challenging industries in this context are the chemical sector and the cement and concrete sector. Both play a crucial role in the global economy but have significant impacts on carbon emissions, water consumption, and ecosystem degradation.

Chemical sector     

The chemical industry is a fundamental pillar of the global economy, supplying raw materials for virtually every sector, including food production, pharmaceuticals, plastics, textiles, and electronics. However, its dependence on fossil fuels, intensive water consumption, and the generation of hazardous waste make it one of the industries with the most significant environmental impact.

In recent years, strategies have been developed to make this sector more sustainable, addressing both the direct impacts of production and the effects on the supply chain and the end-of-life of chemical products. Some of the key initiatives to reduce the environmental footprint of the chemical industry include:

• Adoption of renewable energy: Replacing fossil fuel sources with low-carbon electricity and green hydrogen has a significant impact on reducing emissions.
• Water efficiency: Implementing water recycling and reusing technologies in factories, as well as partnerships to recover municipal wastewater, helps minimize consumption and alleviate pressure on water resources.
• Circular economy and biodegradable materials: Developing biodegradable chemicals and implementing systems for reusing and recycling plastics and other materials reduces pollution and waste.

Implementing these solutions not only contributes to biodiversity preservation and pollution reduction but also enhances the competitiveness of companies, preparing them for stricter environmental regulations and the growing demand for sustainable products.

Cement and concrete sector    

The construction sector is one of the largest consumers of natural resources globally, with concrete being the most widely used building material worldwide. The production of cement, a key component of concrete, is particularly carbon-intensive due to the high-temperature burning of limestone and other minerals, a process responsible for approximately 4 to 8% of global greenhouse gas emissions.

In addition to emissions, the cement and concrete industry significantly impacts water resource management and soil degradation due to the extraction of raw materials for production. To mitigate these impacts, the sector has been adopting various strategies, such as:

• Reducing greenhouse gas (GHG) emissions: This strategy includes replacing fossil fuels with renewable electricity, implementing carbon capture and storage technologies, and using alternative materials to clinker, resulting in a reduction of GHG emissions.
• Sustainable water management: The cement and concrete industry has implemented water recycling systems and replaced freshwater sources with rainwater and recycled water. These practices aim to reduce pressure on local water resources, particularly in regions facing water scarcity.
• Circular economy systems: Incorporating industrial waste, such as metal slags and fly ash from power plants, into cement production, as well as using recycled aggregates in the manufacturing of new building materials, are practices that reduce the need for raw material extraction and minimize construction and demolition waste.

Innovation plays a central role in transitioning to a more sustainable cement and concrete sector. New materials, such as CO₂-absorbing concrete and geopolymer-based cement, are being developed to further reduce emissions and enhance buildings’ energy efficiency.

Measuring success across new frontiers

As companies adopt more sustainable models, measuring the impact of their actions effectively and in line with global standards becomes essential. Environmental and social indicators need to be established to reflect the creation of value for the planet and society. Implementing biodiversity and social KPIs while adhering to global standards and commitments enables companies to assess their progress, ensure transparency, and meet the increasing demands of investors, regulators, and consumers.

Biodiversity and social KPIs       

The environmental and social impact of operations is increasingly being considered a central element in evaluating business performance. To measure progress objectively, companies should adopt specific KPIs, such as:

• Greenhouse gas (GHG) emissions.
• Energy consumption from renewable and non-renewable sources.
• Energy efficiency.
• Water consumption.
• Waste management.
• Use of sustainable materials.
• Biodiversity and land use impact.
• Workplace safety and health index.
• Diversity and inclusion.
• Employee satisfaction and well-being.
• Compensation and pay equity.
• Training and development.
• Social impact on the community.
• Human rights in the value chain.

Based on these indicators, companies can monitor the impact of their actions and identify opportunities to improve supply chain sustainability, ensuring that economic growth is truly aligned with environmental regeneration and social well-being.

Global standards and commitments 

Adopting international standards and voluntary commitments strengthens the credibility of corporate initiatives and ensures alignment with global best practices. Standards such as the United Nations Sustainable Development Goals (SDGs), the Global Reporting Initiative (GRI), and the new Corporate Sustainability Reporting Directive (CSRD) are increasingly used to report companies’ environmental and social performance.

Additionally, certifications such as the Carbon Disclosure Project (CDP), the Science Based Targets Initiative (SBTi), and ISO 14001 help companies structure and validate their sustainability strategies. These commitments not only ensure compliance with future regulations but also enhance corporate reputation and access to sustainable financing.

Still have some questions about sustainable supply chains?

What is a nature-positive supply chain? 

A nature-positive supply chain seeks to regenerate ecosystems, restore biodiversity, and generate value for both the economy and the environment, going beyond the mitigation of simple environmental impacts.

What is the difference between standard sustainability and a nature-positive approach?

Traditional sustainability focuses on reducing negative impacts, minimizing resource consumption, reducing emissions, and implementing more efficient practices. While this is an essential approach, it often focuses only on damage mitigation without directly addressing the regeneration of ecosystems. In contrast, a nature-positive approach goes further, actively promoting environmental recovery and the regeneration of natural resources.

What are the key elements of supply chain sustainability?   

Ensuring sustainability in the supply chain is essential, striking a balance between environmental, social, and economic responsibility through practices that regenerate ecosystems, strengthen communities, and promote sustainable growth.

• Environmental responsibility: Reducing the ecological footprint and regenerating resources are fundamental principles. This includes optimizing water and energy consumption, adopting a circular economy to minimize waste, and reducing carbon and other emissions throughout the value chain.
• Social responsibility: Ensuring fair working conditions, promoting ethical trade, and encouraging social inclusion are essential aspects. Community engagement, valuing diversity, and investing in training and education foster strong business relationships and create a lasting, positive impact.
• Economic responsibility: Ensuring financial viability without compromising the environment or society is crucial. This involves adopting sustainable business models, efficient resource management, and seeking innovation to strike a balance between competitiveness and corporate responsibility.