

Sustainability: from regulatory obligation to competitive advantage.
Published on:Mit Sloan Management Review Italy, August/September/October 2025. Year 4. Number 4.
Suppliers of major brands have a unique opportunity to increase their market share through B2B sustainability solutions.Business leaders are facing increasing pressureby global markets and regulators to make verifiable and traceable sustainability commitments, such asdecarbonisation, thecircularityesustainable procurement. Brands rely on suppliers to meet this demand. Suppliers are increasingly receiving requests for evidence of their sustainability performance in requests for proposals and questionnairesdue diligencethird parties, and companies that can provide solutions to sustainability challenges are receiving more investment.
Major brands requiring their suppliers to improve the sustainability of their products includeMcDonald's, which asked its beef suppliers in Brazil for meat from farms that do not contribute to deforestation;Salesforce, which requires its suppliers to demonstrate compliance with the standards of the Science based targets initiative, carbon neutrality and other climate commitments in their procurement contracts; eMars, which requires its suppliers to provide evidence of low-carbon and deforestation-free approaches to the production of key raw materials, such as palm oil.
Despite increasing scrutiny of environmental, social and governance practices by U.S. federal and state governments, demand for sustainable products and services continues to grow across the country and in global markets. Market research conducted by New York University's Stern Center for Sustainable Business (CSB) found that consumer packaged goods marketed as sustainable in the United States are growing at nearly double the rate of conventionally marketed products, with an average price premium of 28% (based on 10-year data). Other CSB research found that sustainability affects all types of U.S. consumers, regardless of political party, location, education level, income and other demographic factors.
Additionally, regulatory trends outside the United States are driving the adoption of sustainability goals and demand from suppliers for sustainable solutions. A 2024 B2B Sustainability Study (simon-kucher.com) found that committing to global sustainability standards and managing sustainability risks requires brands to turn to their suppliers for help. For example, three-quarters of European companies and more than half of those based in the United States have announced net-zero emissions targets to reduce their emissions by 2030. 40% of these companies, in both Europe and the United States, are also required to report and reduce Scope 3 emissions, i.e. those embedded in a company's value chain. These companies will need to ask their major suppliers for emissions data from their products and services and require them to set their own net zero emissions targets.B2B suppliersthat offer customers a path to reach their net zero emissions goals can therefore increase their market share if they act now.
B2B suppliers looking to grow their business with a sustainability strategy should considerthe following two approaches.
STRATEGY 1
Help clients navigate the opportunities and risks related to their sustainability priorities and statements
Suppliers can create new business opportunities for themselves and their customers if they are able to address their concrete sustainability concerns. Solutions can be customized to meet customers' sustainability needs, whether they need to decarbonise their supply chains, ensure good working conditions, reduce water consumption, decrease the amount of plastic in their packaging or address any other sustainability issue.
Suppliers should research potential buyers' requirements and identify claims they can strategically support. They should also collect and report holistic data on products, production and purchasing to enable credible and verified sustainability claims, especially if their customers are required to disclose sustainability information along their value chains.
Working with globally recognized sustainability standards and certification programs also gives credibility to sustainability claims. Some sustainable certification standards have been recognized by governments, such as the US Department of Agriculture standards for organic foods or the Nordic Swan Ecolabel environmental certification in Europe. Other standards are managed by third parties, such as those of the Rainforest Alliance, Fairtrade International, Cradle to Cradle Products Innovation Institute and dozens of others that operate under the requirements of the International social & environmental accreditation & labeling Alliance (Iseal Alliance), a network of third-party organizations that set the standards. The US Federal Trade Commission has cracked down on misleading sustainability claims and recommends third-party certifications and scientific evidence to support the claims. Some retailers also use trusted third-party standards to assign products sold on their platforms the status of “climate-friendly” or other sustainability status.
STRATEGY 2
Train sales teams to market sustainable products and services
Sustainability can be a powerfulmotivational factor for both customers and sellers. A meta-analysis of the academic literature on B2B sales and sustainability (Gabler, Landers and Itani – 2023) found that sellers' expertise on the subject is often a more determining factor in customer satisfaction with eco-friendly products than price, quality or image. The research also found that sustainability messages motivate sales teams when they are knowledgeable about the topic and agree with the leadership position. One study cited in the meta-analysis found that an emphasis on sustainability improved the sense of meaning that salespeople attach to their work, along with an increase in customer satisfaction. Another cited study found that sales staff who prioritize sustainability typically take more actions that bring broad benefits to their organization.
However, many B2B companies fail to adequately train sales and marketing teams on communicating the sustainability benefits of their products. Because a company's sustainability solutions are likely new, sales teams that haven't received adequate training may not feel comfortable selling them. They may not understand the technology and don't want to appear uninformed in front of a customer. Meanwhile, customers may be skeptical about sustainability claims or worried that exaggerated claims could create a market risk for them, which can only be addressed if sellers truly understand and are able to explain the solution.
B2B sales and marketing teams need to be trained on several aspects of how a solution supports sustainability.First, hisenvironmental or social impact:for example, how can this solution improve occupational health statistics or reduce water consumption? Second, its economic benefits: How could improving worker safety or reducing water consumption save the buyer money?
Then, its advantages in terms of market and regulations.How can the solution help the buyer make authentic sustainability claims to consumers or meet regulatory requirements?
Finally,its technical nature.If salespeople are unable to answer detailed questions about how the solution works, they should be able to rely on help from engineers within the organization who are knowledgeable.
Organizations should also consider the following before encouraging their sales teams to discuss sustainability with prospects.
Knowledge and attitudes of sales representatives.The company should integrate sustainability into its DNA and allow alignment between the different company functions. This means hiring salespeople who share the company's values and training and engaging those who joined the company before it adopted sustainable solutions. If salespeople are not adequately trained and involved, the company may not see benefits in terms of sales.
The main advantages of the product.The sales material should always explain the fundamental characteristics of the product/service first. If the product does not meet the basic requirements of the potential buyer, it does not matter if it is more sustainable than other options. Research conducted by CSB in collaboration with Edelman has shown that consumers respond well to sustainability claims that are based on the main characteristics of the product. In that study, purchase intent increased from 44% with the right key feature statement to 74% with two additional sustainability statements about a product; consider, for example, a skin care product that not only provides deep hydration, but is also sustainably sourced and non-toxic.
Data on the impact of products.Some organizations have developed calculators that their salespeople can use to help customers better understand the potential impacts and trade-offs of different options. Some options may require a higher initial investment, but provide net long-term savings when factors such as reduced energy use, water use, waste and greenhouse gas emissions are taken into account. Examples of such tools include Norfolk Southern's Carbon calculator for rail transportation, Rockwell Automation's Sustainability calculator for repairs for manufacturing, and Ecolab's eROI calculator for evaluating the sustainability benefits of its water, sanitation and infection prevention solutions.
Convincing messages.Effective salespeople know the power of stories to engage customers, and it can be easy to forget that selling customers about sustainability is no different. Support your sales team with information that illustrates the solution's positive environmental, social and economic impacts. For example, a forest products company that sold single-use paper products to hospitals, such as gowns, developed a take-back/recycling program that it funded for its customers. This created more opportunities for engagement with customers, who reported program results, and improved customer loyalty.
Realistic expectations.The sales team must be careful not to overpromise in terms of positive impact on sustainability, as this could turn into greenwashing. Sellers should remind potential buyers that their solution can only be one part of a larger sustainability strategy. For example, it would be misleading for a company that purchases Rainforest Alliance certified coffee to call its cappuccino products sustainable unless the milk and sugar in its products also come from sustainable sources.
Sustainability increases the market
Suppliers perceived as sustainable are able to establish solid and positive relationships with customersthanks to a higher level of trust, according to an academic study in which almost 400 Australian B2B managers were interviewed. The study authors also found that B2B positioning on sustainability (Casidy and Lie, 2023) can aid both emotional engagement and financial benefits perceived by both parties. According to research, when companies begin a relationship with a supplier, emotional involvement around sustainability efforts may be the most compelling benefit, but as the relationship develops, financial benefits begin to take precedence. Interestingly, the study found that when the values of the two companies are similar – both have a strong sustainability ethic, for example – they tend to focus on financial benefits, but when they are not, an emotional argument for sustainability is more persuasive than an economic one.
As global challenges related to climate change, water scarcity and pollution worsen, so too does consumer demand for sustainable products and services, as do regulators' efforts to hold companies and their supply chains accountable for addressing these issues. Suppliers who develop credible sustainability offerings, invest in well-trained salespeople and create effective messages supported by data can increase market share and customer loyalty, as well as reduce their risk of social or environmental problems in their operations or supply chain.
Bibliography
“Summary of McDonald's deforestation-free beef sourcing policy”.
“Position on deforestation and land use change”, mars.com.
“Pursuing profitability alongside net zero emissions goals”, simon-kucher.com.
Gabler, C. B., Landers, V. M., & Itani, O. S. (2023), “Sustainability and Professional Sales: A Review and Future Research Agenda,”Journal of Personal Selling & Sales Management,43(4), 336–353. https://doi.org/10.1080/08853134.2023.2244675.
Carbon Calculator: https://eads-cap-ui-eads.web.ocp4.nscorp.com/#/
Rockwell Automation, “Sustainability Calculator for Repairs” (https://www.rockwellautomation.com/en-us/tools/sustainability-calculator-for-repairs.html).
eROI Exponential return on investment (https://www.ecolab.com/expertise-and-innovation/exponential-value-eroi).
Riza Casidy and David Sugianto Lie, “The Effects of Sustainable B2B Brand Positioning on Relationship Outcomes,”Industrial Marketing Management, Volume 109, 2023, pages 245-256, https://doi.org/10.1016/j.indmarman.2023.02.006.