Andrew Kaminsky November 4, 2026Recent pullbacks and postponements on sustainability regulations have weakened compliance-based messaging for sustainability software solutions.
Sustainability regulations might drive buyers to find a compliance solution, but the real purchase driver is what the solution does beyond compliance. Sustainability solutions that reveal cost savings, reduce physical climate risk, and enhance operational decision-making go far beyond their value as a compliance tool, and product messaging has to highlight that.
Regulatory compliance might be the core function that a solution provides, but the added value is where the differentiation lies.
If your buyers still only see sustainability from a compliance or consumer preference perspective, it’s time to educate them about the tangible benefits that B2B sustainability solutions can provide.
1. Let’s start with the money
Cost savings from sustainability solutions go far beyond lowering a utility bill or optimizing logistics routes. Carbon border costs, packaging fees, and supply chain insights are all significant factors that impact the modern bottom line and future profitability.
In Europe, the Carbon Border Adjustment Mechanism (CBAM) puts a direct price on the emissions embedded in certain imports, including steel, aluminum, cement and fertilizers. That makes it important to identify supply chain carbon hotspots for two reasons:
- Fewer emissions mean lower CBAM costs
- Securing actual supplier emissions data avoids the default CBAM emissions values, which are deliberately conservative
Extended producer responsibility (EPR) fees also apply to packaging materials. Insights into packaging would not only save companies money on material costs, but also on EPR fees as recyclability becomes a bigger focus for jurisdictions.
Regulatory pressures like EPR schemes and CBAM go beyond disclosure compliance and bring a financial incentive to understand operational and supply chain sustainability data.
I spoke with one carbon accounting expert on background who suggested default CBAM emission values could mean 10-20x additional costs compared to primary supplier data, depending on industry and location. In most cases, though, the default premium is far narrower, often around 1.5x.
2. Physical climate risk exposure
Some regions of the world are more susceptible to severe weather than others. A hurricane is far more likely to cause damage in Miami or Manila than it is in Chicago or Mexico City. Similarly, wildfire risk is way higher in Los Angeles than it is in Dublin.
Understanding where a company’s physical assets lie can paint a picture of their exposure to physical climate risks. Most companies will have eyes on this already, but going a few levels up the supply chain may reveal that a company’s supply is wildly exposed to flooding in Bangkok, for example.
With these supply chain insights combined with climate risk modeling, businesses can see where they are exposed. Taking preventative measures to reduce that risk is way cheaper than dealing with it after disaster strikes.
Companies reporting to CDP expect every dollar spent on adaptation and resilience to return $2 to $19, according to World Economic Forum and BCG analysis.
3. Sustainability data improves executive decisions
Many businesses see sustainability as a snapshot in time, and that’s a consequence of reporting. Disclosing sustainability data forces businesses to look into the past to measure what their emissions were, how much water they used, or what their waste tonnage was. And then the goal becomes improving on those numbers so that the next time you take that snapshot, the picture looks a little bit better.
I don’t want to dismiss the importance of reporting — you can’t change what you don’t measure — but sustainability should be a forward-looking exercise. Something that is sustainable, like a running pace or spending habits, means it can go on for a long time. This forward-looking perspective is where business sustainability should be focused.
Incorporating sustainability considerations into operational decisions is how businesses can ensure long-term sustainability. How many carbon emissions are tied to each potential new supplier, and are there cleaner options? Is our supply of cocoa too concentrated in one area and at high risk of shortages due to regional drought? Do we have the necessary product-level sustainability knowledge to be compliant if we expand into Europe?
Sustainability data can not only answer those questions, but it can make those conversations happen in the first place, and incorporating these considerations into executive decisions is how businesses can protect margins and become genuinely sustainable.
Over two-thirds of companies that report under the EU’s CSRD or the ISSB said they gained value beyond compliance from the data, according to a PwC survey.
Capture this value in messaging
Sustainability solutions for regulatory compliance are only as strong as that regulation’s timeline and reach. Messaging that goes beyond compliance and addresses long-term business sustainability provides much more value to the buyer and elevates that solution above the pool of compliance solutions.
Compliance brings buyers to the table. Value keeps them there. If you’d like help communicating the value of your solution, let’s talk.
