A Value Chain Approach To Addressing Climate Change

Addressing climate change is crucial for businesses due to environmental impact and economic benefits. Adopting a value chain approach considers the entire lifecycle of products/services, identifying opportunities to reduce the carbon footprint and improve sustainability. This empowers companies to develop profitable business models and contribute to a resilient supply chain in the face of climate change.

Positive Climate Action in the Value Chain

The value chain is a critical aspect of businesses, encompassing the stages of production and distribution that bring products to consumers. With growing pressure to reduce greenhouse gas emissions and address climate change, companies must re-evaluate their value chain in mitigating  environmental impact, assessing each stage, from raw materials extraction to end-of-life disposal.

There are several steps businesses can take to mitigate climate change. They can prioritize renewable energy sources like solar or wind power to decrease their carbon footprint, collaborating with suppliers to establish responsible sourcing practices, and adopting circular economy principles.

Evaluating the Carbon Footprint of Your Value Chain

Calculating the carbon footprint of each value chain stage helps organizations understand their environmental impact and identify reduction opportunities. To lower their carbon footprint, businesses can analyse production processes, encourage eco-friendly raw materials, shift to renewable energy, invest in sustainable packaging, and engage in community initiatives. The benefits of carbon footprint tracking and reduction include environmental impact reduction, attracting eco-conscious customers, enhancing reputation and brand image, cost savings, and appealing to new clients seeking greener products.

The Role of Stakeholder Engagement

Collaboration is crucial in the fight against climate change within the value chain. Businesses need to work with stakeholders across sectors, industries, and communities. Addressing greenhouse gas emissions requires collaborative efforts to protect the global economy, environment, and human health. Identifying relevant stakeholders, such as suppliers, customers, investors, regulators, NGOs, local communities, and employees, is essential. Involving a diverse range of stakeholders helps businesses understand their impact and develop effective strategies for reducing carbon emissions.

Climate Action in the Value Chain: What’s Next?

Emerging technologies are offering solutions for companies to reduce their carbon footprint and create a sustainable future in the value chain. Renewable energy sources like solar and wind power are becoming more cost-effective, enabling a shift away from fossil fuels. The circular economy model, promoting material reuse and design for durability, is gaining traction. Collaboration throughout the value chain is crucial, allowing companies to identify efficiency gains, waste reduction, and emissions reductions. This collaboration involves sharing best practices and making joint investments in new technologies and infrastructure.


In conclusion, positive climate action in the value chain is crucial for companies to address climate change. By examining each stage, identifying areas for improvement, and adopting sustainable practices, businesses can make a real difference. Many companies have already taken steps towards sustainability, and more will likely follow. Supporting and encouraging these efforts is essential for a sustainable future.

If your business is looking to develop a climate action plan that addresses climate-related risks and opportunities throughout your value chain, consider Aubrens as your partner. We are a team of sustainability experts with extensive experience in developing bespoke sustainability solutions for our clients, enabling them to embed sustainability into their business activities. To learn more about our services, contact us via the details below. 

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