How Sustainability is Redefining B2B Brand Value

Luka Biernacki
Founder, UNUECO
09/2024
Brand Management
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Artwork for the UNUECO article on how sustainability is redefining B2B brand value

How Sustainability is Redefining B2B Brand Value

Branding has changed dramatically, driven by social change, new communication channels and shifts in how business is done. The word "brand" still conjures consumer logos, iconic campaigns and memorable taglines. B2B brands rarely appear on billboards or in TV ads, yet they shape whole industries from behind the scenes, and their influence on sustainability is profound. They usually sit within their clients' Scope 3 emissions, the largest part of most companies' carbon footprint, and they are often at the forefront of innovation.

As B2B companies become integral to their clients' sustainability progress, the way their value is perceived changes. Carbon accounting and sustainability performance now bear directly on B2B brand value, for the reasons below.

Scope 3 emissions and brand perception

Scope 3 emissions are the indirect emissions generated along a company's value chain, often by suppliers and business partners, and they are typically the hardest to measure and reduce. That puts suppliers' own emissions under growing scrutiny. For B2B brands, accurately accounting for and cutting emissions has become a commercial factor in its own right, with a direct bearing on brand value.

Large companies increasingly build sustainability into procurement decisions alongside price, quality and service level, which reinforces the advantage of suppliers who prioritise it. Deloitte's 2023 Global CPO Survey found that 62% of chief procurement officers are targeting climate mitigation and 72% are focused on waste reduction and material circularity. Sustainability has moved to the centre of procurement strategy, and B2B brands that align with it stay competitive.

The value of sustainability in B2B

Brand Finance research shows how strongly sustainability perceptions drive choice in B2B-dominated sectors. Sustainability accounts for 9.5% of what drives brand choice in real estate, 7.9% in insurance and 7.8% in IT services. Suppliers with credible sustainability practices can use that to differentiate themselves and become preferred partners.

Building a competitive edge through sustainable brand building

Corporate clients now expect more of their suppliers, particularly on sustainability and transparency, which makes sustainable brand building a strategic priority and a source of lasting advantage.

Holcim, a global leader in building materials, is a case in point. By offering low-carbon products such as its ECOPact concrete and supporting the circular economy through recycled construction materials, it has positioned itself as a natural partner for companies that must meet sustainability requirements in their building projects. Its leadership in green building solutions has strengthened its standing with public and private clients focused on low-impact construction, showing how a serious commitment to sustainability can open new opportunities in a competitive market.

Data transparency: the foundation of sustainable brand building

Data transparency sits at the heart of sustainable brand building. With greenwashing under growing scrutiny, B2B brands must back their environmental commitments and milestones with reliable data. Transparent data builds trust and helps a supplier stand out.

Accurate emissions data also helps clients meet their own reporting and compliance obligations. As disclosure rules tighten, trustworthy data will be essential on both sides of the relationship, and suppliers who provide it become partners in their clients' success.

The advantage of genuine commitment

Real commitment to sustainability reaches beyond marketing into the core of the business: responsible sourcing, waste management, energy efficiency and more circular, low-carbon products and services. B2B companies that can demonstrate these efforts with transparent data gain a significant edge.

That edge also future-proofs the business. As sustainability weighs more heavily in procurement, the leaders will be first in line when clients choose partners, and companies ready for regulatory change will protect their brand's integrity and long-term viability.

Conclusion: sustainable brand building as a strategic imperative

For B2B companies, sustainable brand building has become essential. Commitment to sustainability, backed by transparent data, strengthens competitive position, deepens client relationships and keeps a business relevant in a market that increasingly rewards responsible practice.

The road to a sustainable future has its challenges, but for B2B companies willing to take it, the rewards are substantial. Those that invest in genuine, data-driven sustainability will contribute to a better world and make their brands future-proof.

UNUECO helps B2B companies communicate sustainability credibly to clients and investors. Talk to us.