Karst Popkema
Consultant
My focus is on helping organizations make sustainability measurable, embed it strategically, and then translate it into concrete results that make a real impact.
Companies operate in an environment where sustainability is no longer a choice, but a prerequisite for business continuity. Supply chains are under pressure, European regulations are shifting toward specific requirements at the product and supply chain levels, and stakeholders expect demonstrable control over impacts and risks. At the same time, there is a growing awareness that sustainability not only addresses risks but also creates direct value: lower costs, more stable supply chains, and new growth opportunities — a trend that has recently been emphatically confirmed in the World Business Council for Sustainable Development ’s Business Breakthrough Barometer , published this month .
This calls for a different approach to management. It requires a shift from a focus on efficiency to organizing flexibility and resilience within your supply chains and assets. From ad hoc compliance with sustainability requirements to data-driven decision-making and targeted management of sustainability, where sustainability is approached as a strategic issue. Those who fully understand this development not only mitigate risks but also leverage sustainability as an opportunity.
Today’s world is characterized by declining predictability (WEF, 2026). Supply chains are under pressure, the availability of raw materials and energy prices are volatile, physical assets face constraints related to space, water, and grid capacity, and regulations are shifting from abstract standards to concrete requirements at the product and supply chain levels. At the same time, customers, financiers, and authorities expect organizations not only to perform well but also to demonstrate that they have a firm grasp of their impact, risks, and dependencies. As a result, sustainability is moving to the heart of strategic decision-making.
According to ING’s CEO Survey (2025), sustainability will remain important to executives in 2026. However, the way sustainability is viewed is changing — from an option to a prerequisite for continuing to operate. Board members who view sustainability primarily as a reputation or reporting issue risk being caught off guard. The Dutch term “duurzaamheid” may not fully capture the concept: English terms such as “durability” and “continuity” better reflect the shift from “green” to the ability to continue functioning.
Table of contents
From efficiency to resilience
For years, efficiency was at the heart of management agendas: lean supply chains, just-in-time, minimal inventory. Reality has shifted this perspective. Geopolitical tensions, trade restrictions, and shortages of critical materials make it clear that efficiency without buffers is vulnerable. For executives, this shifts the central question: How resilient is our organization if these stable conditions disappear? Decisions regarding suppliers, raw materials, reuse, and circularity take on strategic importance. Not merely as a sustainability ideal, but as a tool to maintain supply security, price stability, and operational flexibility.
Physical resilience is also a key focus. Climate change is increasingly leading to concrete disruptions: water availability, heat stress, energy supply, and accessibility of locations. This makes scenario planning a management task: where are our vulnerabilities, what alternatives are realistic, and what investments are needed to ensure continuity?
This is not a theoretical risk; it is already a concrete reality for various sectors and companies. For example, Apple’s supply chain ground to a halt during the COVID-19 pandemic due to its heavy reliance on centralized production in China. At the same time, Coca-Cola saw firsthand how physical climate risks directly impact operations when a drought in Brazil led to restrictions on the availability of water for production. These examples illustrate how both geopolitical and physical conditions are challenging existing assumptions and forcing companies to make different choices regarding supply chain design, location strategy, and resource use.
From reporting to data at the product and supply chain levels
A second fundamental shift is the move from ex post accountability to providing evidence during operations. Sustainability is shifting from the policy and reporting levels to the product, project, and supply chain levels. For example, through data requirements in the form of digital product passports within EU legislation such as the Packaging and Packaging Waste Regulation (PPWR), the Construction Products Regulation (CPR), the Ecodesign for Sustainable Products Regulation (ESPR), or the Right to Repair (RTR). In practice, this means that organizations must be able to provide data on origin, composition, CO₂ impact, maintenance, repair, and lifespan.
This development directly affects core systems and primary processes: ERP environments, procurement, quality, and product design. Sustainability thus ceases to be a separate data stream and becomes an integral part of regular business operations. Management decisions regarding data definitions, system design, and ownership determine whether transparency remains manageable or devolves into parallel Excel structures and constant ad hoc queries.
On top of that, the board’s responsibility for digital issues such as data quality and cybersecurity is growing. Digital vulnerability is no longer just a technical issue, but a direct risk to business continuity. Boards are held accountable for oversight, decision-making, and demonstrable control. Investing in data and IT architecture is therefore no longer a support cost, but a prerequisite for market access, compliance, and scalability.
At the same time, investments in IT actually offer an opportunity to better focus on progress and performance. Investing in robust data infrastructure not only provides greater control over risks but also offers insight into supply chain performance, dependencies, and opportunities for improvement. This makes it possible to set priorities more effectively, make adjustments more quickly, and report transparently to stakeholders.
The license to operate: the rise of institutional demand
What is changing is not the importance of a license to operate, but the requirements associated with it. Banks, insurers, and clients are increasingly factoring ESG and transition risks into their decisions. Sustainability is thus becoming an economic and legal criterion, and no longer merely a moral or communications issue.
At the board level, this translates into pointed questions such as:
If the answers to these questions are negative, concrete restrictions arise: higher financing costs, exclusion from competitive bidding, delays or denials of permits, or higher risk premiums. The “license to operate” thus becomes both more onerous and more selective. Without a coherent narrative, clear governance, and reliable data, there will be no abrupt halt, but rather a gradual erosion of room for maneuver.
Our vision: governance based on cohesion
The common thread for executives is coherence. Resilience, data-driven operations, sustainability, and business continuity are no longer separate issues that can be managed in silos. They converge in strategic decisions regarding investments, systems, supply chains, and risk acceptance. The central question shifts to: Do we truly understand our most significant vulnerabilities, and are we addressing them in a comprehensive manner? Organizations that answer this question seriously — with focus, clear accountability, and actionable decisions — are doing more than just ensuring compliance. They strengthen their business continuity and create a robust foundation for long-term value creation.
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Sources:
WBCSD Business Breakthrough Barometer (2026) https://www.wbcsd.org/wp-content/uploads/2026/06/Business-Breakthrough-Barometer-2026.pdf
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