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Sustainability is certainly not a new idea. During the 1970s, in the wake of mass industrialization, the need for alternate sources of energy that would reduce reliance on fossil fuels emerged, and with it, the notion of tapping renewable sources that could be sustained indefinitely&mdash;not inevitably exhausted.&nbsp;

In the ensuing 50 years, though, we&rsquo;ve seen the perception of sustainability move from a noble&mdash;but perhaps unrealistic&mdash;goal to a target increasingly set by government regulation, then to a nice-to-have corporate brand enhancer. Now it has become a boardroom and operational imperative focused on growth, resilience, and competitive advantage.

<blockquote>
Sustainability has taken center stage for consumer company strategy and operations.
</blockquote>

Indeed, most large companies now routinely tout decarbonization strategies, along with goals for becoming &ldquo;carbon neutral&rdquo;&mdash;the attempt to offset emissions with carbon sequestration. For the consumer industry, four key forces are having a more pronounced effect:

<ol>
	<li>The rise of purpose-driven consumers</li>
	<li>Brands re-evaluate their purpose and value</li>
	<li>Investors expect companies to be more resilient</li>
	<li>Incentives for green initiatives</li>
</ol>

The result of these forces acting on the consumer industry? Sustainability has taken center stage for consumer company strategy and operations. In particular, consumer businesses need to think holistically and innovatively across their entire value chains. They need to set standards for sustainable practices&mdash;including those that enable transparency and traceability&mdash;that earn trust from purpose-driven consumers. And they need to apply this thinking and practice, not just to their organizations as a whole, but to each of their products&mdash;the level that will resonate most with purpose-driven consumers making a buying decision.

A holistic view of the value chain

For all industries&mdash;but especially for the consumer industry&mdash;sustainability requires understanding and action across an entire value chain. In turn, this means a company must have an integrated, unified view of that value chain. It cannot examine and act in individual silos and hope to be successful.

Sustainability transformation requires integration across the value chain

<img alt="Sustainability transformation requires integration across the value chain" src="https://s3.us-south.cloud-object-storage.appdomain.cloud/ibv/e9a6132490ba4d85a7733c88a2182c89.svg" width="700" />Exponential technologies can help. New platforms that tap IoT devices to monitor activity across the value chain can use embedded artificial intelligence (AI) and advanced analytics to make sense of that activity. Blockchain can enable accurate reliable transaction records that provide a common view of what&rsquo;s really going on.

Read the full report to learn how your organization can set&mdash;and achieve&mdash;clear sustainability targets that resonate with purpose-driven consumers and deliver a competitive advantage.

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Our data-driven B2B and B2C insights help leaders compete in a shifting and volatile consumer and retail market.

Consumer products

Consumer products - Research, reports, and insights | IBM

Retail

Retail - Research, reports, and insights | IBM

Sustainability

Winning over purpose-driven consumers can deliver a competitive advantage in a complex business environment.

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Sustainability as a business strategy

Sources

IBM IBV Insights AI

Sustainability as a business strategy

Intelligent automation for consumer products and retail supply chains

Meet the 2020 consumers driving change

The content supply chain's AI awakening: Consumer products insights

The content supply chain's AI awakening: Retail insights

Embedding AI in your brand’s DNA

IT sustainability at a crossroads