Climate Action in the Value Chain: Opportunities and Approaches for Sustainable Business

Climate change demands a fundamental shift in all areas of the economy. Companies are responsible for making their value chains not only more efficient but above all more sustainable. In resource-intensive sectors such as construction, switching to climate-friendly materials and processes holds enormous potential – both for climate protection and for driving innovation.

A key lever lies in taking a holistic view of the value chain. Emissions can be reduced at every stage – from raw material sourcing to production and distribution. Core measures include using sustainable materials, energy-efficient technologies, and promoting recycling and circular economy practices. Close collaboration with partners also enables companies to set and implement sustainable standards across the entire supply chain.

One outstanding example of this approach is the use of wood – a natural, renewable raw material that can play a crucial role in climate action.

Wood as a Valuable Resource

Wood is one of the oldest materials used by humans and is also a material of the future. It is already widely used in industries such as construction, furniture, and paper manufacturing.

Advantages of Wood:

• CO₂ Storage: Wood stores carbon as it grows. Every cubic meter of wood used instead of concrete or steel saves up to 2 tons of CO₂ emissions. This is especially true when wood is used in long-lasting products such as timber houses, locking away carbon for decades.
• Sustainability: Wood is a renewable resource and is abundantly available when forests are managed responsibly.
• Circular Economy: Wood products can be recycled or used for energy generation, further reducing resource consumption.
• Flexibility: Wood is durable, versatile, and promotes healthy living environments due to its positive effects on indoor air quality.

However, using wood sustainably requires forest management that protects ecosystems and addresses the challenges of climate change.

The Supply of Wood is Under Threat

Climate change, coupled with widespread monoculture forests, increasingly threatens the availability of high-quality wood. Extreme weather events such as droughts or severe storms lead to widespread tree dieback. While this may temporarily flood the market with low-grade timber, it creates long-term shortages and rising prices. It can take years or even decades for newly planted trees to mature.

For companies relying on wood as a raw material, this undermines planning security. Fluctuating quality and prices make it difficult to invest and innovate. Diversifying tree species is becoming increasingly important. Mixed forests are more resilient to pests and climate impacts, playing a key role in building a sustainable and secure wood supply chain.

Sustainability in Action: Baufritz and Pina Earth

An exemplary case of a sustainable value chain is Baufritz, a pioneer in ecological homebuilding. Wood is the primary building material, sourced mainly from responsibly managed forests. Short transport distances (usually around 150 km) and minimized emissions throughout the production process highlight the company’s strong commitment to climate action. As early as 2015, Baufritz calculated its first carbon footprint to implement targeted climate measures.

How Baufritz contributes to climate protection:

• Long-term CO₂ storage in timber houses: A timber home from Baufritz serves as a long-term CO₂ sink. Calculations show that between 40 and 60 tons of carbon dioxide are permanently stored in each structure, making a measurable contribution to climate action.
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• Commitment to the “Climate Action Wood Industry Initiative”: Baufritz is part of a broader industry initiative that brings together companies from the wood sector to reduce their carbon footprints and support climate projects. As part of this initiative, Baufritz supports innovative forest transformation projects by Pina Earth. These projects convert monoculture forests into climate-resilient mixed forests that are more resistant to drought, storms, and pests. Such efforts not only create ecological benefits but also build more resilient supply chains and safeguard the future of wood as a resource – thus contributing to climate action while strengthening the company’s own value chain.

This commitment is also in line with CEO Dagmar Fritz-Kramer’s vision of addressing residual emissions where they occur – made possible through local climate projects like those from Pina Earth.

Forest Adaptation: The Basis for Sustainable Timber Construction

Adapting forests to climate change is one of the greatest challenges of our time. Projects like those by Pina Earth show how the shift toward resilient mixed forests can succeed.

These forests:

• Increase resilience and supply chain reliability: Mixed forests are more robust against environmental changes, pests, and extreme weather. This stabilizes timber supply, improving long-term planning and reducing the risk of shortages – a competitive advantage in a changing climate.
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• Store and reduce CO₂ throughout the value chain: Diverse tree species help sequester more carbon and maintain healthy forest ecosystems, securing long-term climate impact. Companies sourcing wood from such forests benefit from a reduced carbon footprint – gaining both in climate credentials and lower supply chain emissions.
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• Promote biodiversity and strengthen ecosystems: A healthy mixed forest not only provides raw materials but also supports water retention, erosion control, and biodiversity. Businesses benefit from this holistic approach to nature conservation, as it sustains forests as a resource and strengthens their brand image.

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Supporting such projects creates a strong link between climate action, sustainable value creation, and corporate responsibility. Protecting our forests safeguards not only the future of wood as a resource – but also that of our planet.

“Sustainability starts on your own doorstep. That’s why we at Baufritz focus on regional climate projects – like our partnership with Pina Earth. Our commitment doesn’t remain abstract – it literally grows in our Bavarian forests.” – Michael Sailer, Head of Administration at Baufritz.

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