Davos 2025: A Sustainable Future for Supply Chains

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The World Economic Forum’s (WEF) 2025 Annual Meeting in Davos (Credit: World Economic Forum/Thibaut Bouvier)
The World Economic Forum’s (WEF) 2025 Annual Meeting in Davos sets the stage for critical conversations about the future of global supply chains

Centring on the theme “Collaboration for the Intelligent Age,” the World Economic Forum’s (WEF) 2025 Annual Meeting in Davos examines how supply chains must evolve to address growing challenges such as geopolitical instability, climate change and technological disruption.

As the backbone of global commerce, supply chains face mounting pressure to become more resilient, sustainable and efficient, while keeping pace with the complexities of a rapidly changing world.

Supply chain sustainability takes centre stage at this year’s discussions, with leaders set to explore how digital transformation, decarbonisation and collaboration can mitigate risks and unlock new opportunities.

Katie McGinty, Vice President and Chief Sustainability and External Relations Officer at Johnson Controls, was featured in Sustainability Magazine's Top 100 Women 2024

Katie McGinty, Vice President and Chief Sustainability and External Relations Officer at Johnson Controls, summarises the stakes: “At Davos, world events like military conflicts, trade wars, inflation and the AI revolution will dominate discussions.

"But I also expect climate change and sustainability will be crucial, especially in light of the devastating Los Angeles wildfires.”

Resilience and decarbonisation: Core challenges for supply chains

Global supply chains are under strain due to a volatile mix of geopolitical tensions, protectionist policies and trade disputes. These factors increase the likelihood of disruptions, delays and higher costs for businesses worldwide.

The Davos agenda highlights the urgent need for supply chain resilience to counter these risks.

Simultaneously, climate change adds another layer of urgency as natural disasters, extreme weather and resource scarcity are testing the adaptability of supply chains, forcing industries to rethink how they operate.

Decarbonisation has become a non-negotiable priority, as businesses seek to reduce greenhouse gas emissions across their logistics and manufacturing processes.

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One example of innovation in this area is Johnson Controls’ work in data centres.

Katie adds: “Through innovative cooling technologies, we can cut energy use by nearly 80% and zero out on-site water consumption for keeping chips cool in data centres.”

This approach not only addresses environmental concerns but also showcases how sustainability can drive operational efficiency and reduce costs.

The WEF’s “safeguarding the planet” theme includes 26 sessions focused on climate action, carbon pricing and nature-based solutions, all of which tie directly to supply chain sustainability.

Speakers such as Al Gore and Ursula von der Leyen are expected to provide insights into how industries can integrate environmental considerations into their supply chain strategies without sacrificing competitiveness.

Ester Baiget, President and CEO at Novonesis and Co-Chair of the WEF Alliance of CEO Climate Leaders

Ester Baiget, CEO of Novonesis, emphasises the transformative potential of such efforts: “Climate transformation isn’t about avoiding risks. It’s about building resilience and unlocking growth. It’s about turning challenges into competitive advantages and innovation opportunities.”

The role of technology in supply chain optimisation

The digital transformation of supply chains is another key focus at Davos 2025. The “industries in the intelligent age” theme explores how technologies like AI, machine learning and blockchain can optimise supply chain operations while addressing sustainability goals.

AI, for instance, is revolutionising demand forecasting, inventory management and logistics planning, enabling businesses to reduce waste and improve efficiency.

However, these technologies also bring environmental challenges, particularly in terms of energy consumption. The exponential growth of data centres, driven by AI and cloud computing, has raised questions about how to balance technological advancement with sustainability.

“Addressing energy demands resulting from the AI revolution and exponential growth in data centres will also be key,” says Katie. “There, we can show that decarbonisation, again, is key."

(Credit: WEF)

By implementing energy-efficient solutions and transitioning to renewable energy sources, businesses can mitigate the environmental impact of these digital advancements.

Live sessions at Davos will cover topics such as industrial decarbonisation, nuclear power capacity and the role of EV supply chains in reducing emissions.

These discussions highlight the interconnected nature of supply chains and the importance of cross-sector collaboration in addressing shared challenges.

Collaboration for resilient and sustainable supply chains

As supply chains become more complex and interconnected, collaboration emerges as a critical factor for success.

The Davos agenda underscores the need for partnerships between governments, private companies and non-governmental organisations to navigate the challenges of the intelligent age.

A prime example of this collaborative spirit is the focus on rural development within the “investing in people” theme.

Alvaro Lario, President of the UN’s International Fund for Agricultural Development (IFAD)

Alvaro Lario, President of the International Fund for Agricultural Development (IFAD), points out how supply chains can contribute to global stability: “All of these challenges can be addressed by investments in rural areas that provide decent jobs for young people, stabilise the global food supply and help small-scale producers adapt to our changing climate.”

Investing in local supply chains, particularly in underserved regions, not only strengthens resilience but also promotes equitable economic growth.

This approach aligns with the broader goals of sustainable development and ensures that supply chains remain robust in the face of future disruptions.


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