Capgemini: Sustainable Value Chains & AI for Climate Action

Global value chains are under immense pressure to evolve in response to climate change, geopolitical risks and cost containment.

The industrial sector alone contributes to more than 35% of GHG emissions, with Scope 3 representing 70% of this impact, according to Capgemini.

In Capgemini’s Building sustainable value chains report, it states that if unchecked, rising emissions could drive global temperatures up by 4.1–4.8°C by 2100, far exceeding the Paris Agreement’s 1.5–2°C target. 

At the same time, sustainable transformation presents a unique opportunity for businesses to unlock cost efficiency, resilience and long-term competitiveness.

The challenges of decarbonisation

While sustainability is high on the corporate agenda, execution remains a persistent challenge. 

Half of companies admit they are off-track on Scope 3 decarbonisation and 67% express low confidence in their ability to deliver mature roadmaps. 

Barriers include:

• Difficulty in making a strong business case for long-term sustainability investments
  
  
• Complexity in tracking and accurately reporting carbon emissions
  
  
• Obstacles in decarbonising supply chains
  
  
• Limited scalability of low-carbon technologies.

Sectoral variations add further complexity. 

For industries like cement, steel and mining, Scope 1 emissions dominate, whereas in chemicals, electronics and food, Scope 3 emissions are the key challenge, requiring deep collaboration with suppliers, manufacturers and consumer brands.

“Building a sustainable value chain is an iterative process,” says Cyril Garcia Group Executive Board Member and Head of Sustainability, Capgemini and Charlotte Pierron-Perlès Global Head of Intelligent Industry, Capgemini Invent in the report.

“It requires a balanced approach between short-term quick wins, such as energy efficiency and sustainable product design improvements and long-term action, such as strategising on the product portfolio, sustainable asset investment and supply chain re-design.”

The business case for sustainability

Despite these hurdles, the evidence for the benefits of sustainable value chains is strong.

Sustainable practices directly enhance cost efficiency by reducing energy consumption, lowering carbon taxes and optimising processes. 

For example:

• A packaging redesign using life-cycle assessment reduced product carbon footprints from 10 to 3 kgCO₂e – while also cutting costs.
  
  
• An automotive project achieved 27% Scope 1 and 13% Scope 2 CO₂ reduction across 17 sites.
  
  
• Circular business models in the water and automotive sectors have demonstrated material savings of up to 50% and cost reductions of 70%.
  
  
• Digital twins and AI models enabled one heavy industry client to cut kiln energy use by 15% and reduce development cycles by 70%.

These examples prove that sustainability, when integrated across operations, delivers measurable business benefits alongside climate impact.

A framework for transformation

Capgemini identifies three pillars that define successful value chain transformation:

• Sustainable Product Design: Embedding eco-friendly materials, energy efficiency and circularity from the design stage reduces costs, extends product lifespans and strengthens competitiveness.
  
  
• Sustainable Manufacturing: Transitioning to low-carbon energy, improving water and waste efficiency and adopting circular production models cut emissions and operating costs.
  
  
• Sustainable Supply Chains: Responsible sourcing, logistics optimisation and ESG transparency reduce dependency on vulnerable resources and improve resilience against market shocks.

These efforts are supported by transversal enablers such as low-carbon technology ramp-up, traceability and digital product passports and automated carbon footprint evaluation across large product portfolios.

The role of digitalisation and AI

Data, digitalisation and AI play a pivotal role in accelerating sustainable transformation.

They enable predictive modelling, enhanced decision-making and traceability across value chains. 

For instance, an automated product carbon footprint system allowed a manufacturer with 8,000 suppliers and 350,000 product references to build a comprehensive decarbonisation roadmap.

“Digital transformation and AI are a formidable opportunity to get faster and improve decision-making throughout this transformation, as they help achieve better designs, more productive assets and more flexible supply chains,” say Cyril and Charlotte in the report. 

By leveraging such tools, companies can overcome complexity, build collaborative ecosystems with suppliers and partners and move from isolated strategies to end-to-end sustainable value chain management.

Sustainable value chains are not just a compliance requirement but a growth engine for businesses prepared to act. 

They reduce environmental impact, drive cost efficiency and create resilience in the face of global uncertainty. 

While many organisations remain off-track on Scope 3, those that embrace digital innovation, collaboration and circular practices will lead the way in shaping competitive, future-proof industries.