What a Beer Company Taught Our Executive MBA Cohort About Sustainability

During the Milan immersion week of our International Executive MBA (IEMB), one session stood out from the rest: Sustainable Supply Chain, led by Professor Pietro De Giovanni, Ph.D. of SDA Bocconi School of Management. It’s the kind of topic that can easily stay theoretical in a classroom. This one didn’t.

Starting with the basics

Professor De Giovanni began with something most executives have heard of but few can explain clearly: Scope 1, 2, and 3 emissions. Scope 1 covers what a company emits directly. Scope 2 covers the energy it buys. Scope 3 is the big one — everything upstream and downstream in the value chain, from suppliers to how a product is disposed of after use. He also walked us through Life-Cycle Assessment, the method used to track a product’s carbon footprint from raw material to end of life, and the Science Based Targets initiative’s criteria for what actually counts as a credible Net Zero commitment. Useful groundwork. But the real learning happened next.
Professor Pietro De Giovanni walking a group through their emissions map.

The beer case

Each group was handed a beer manufacturing value chain and asked to map where the emissions actually come from, then figure out what to do about it.

The numbers surprised a few people in the room. Agriculture made up about 23% of the footprint, malting 4%, brewing 14% — all inside the company’s direct control. But packaging alone came to 34%. Add distribution and transport (14%), refrigeration during use (9%), and end of life (2%), and it’s clear that most of the emissions sit outside the factory walls, in Scope 3.

That’s the part that tends to get missed. Companies can spend years optimizing their own operations and barely move the needle, because the bulk of the impact sits further down — or further up — the chain.

Mapping the beer value chain, stage by stage, on the whiteboard.

Groups worked through the whole lifecycle — agriculture, production, packaging, logistics, storage, end of life — and came up with fixes for each stage. A sample of what ended up on the whiteboard:

  • Regenerative farming and organic fertilizers on the agriculture side
  • Renewable energy and recycled water in production
  • Lighter, reusable packaging, plus bottle and can return schemes
  • Route optimization, EVs, and rail instead of road for logistics
  • Natural refrigerants and heat recovery to cut down refrigeration emissions
  • Anaerobic digestion and biogas to deal with organic waste at end of life

Nothing groundbreaking on its own, but the exercise forced everyone to connect each idea to a number, and to a specific point in the chain. That’s harder than it sounds when you’re used to talking about sustainability in generalities.

Between exercises, preparing notes for the next round of discussion.

Why this mattered

The session worked because it didn’t stay abstract. It asked people to think like operators — where’s the emission actually coming from, what would it cost to fix, is it even worth it — rather than just agreeing that sustainability is important.

Professor De Giovanni’s closing challenge summed it up well: stop treating sustainability as a box to check, and start asking how it can actually shape the way a business is run. That’s a harder question, and a more useful one.

Part of the Milan immersion week for the International Executive MBA (IEMB) cohort at SDA Bocconi Asia Center.

Interested in building this kind of strategic thinking into how you lead? Learn more about our International Executive MBA.

#SDABocconi #IEMB #ExecutiveMBA #Sustainability #Innovation #Leadership #Bocconi

Discover more from SDA Bocconi Asia Center

Subscribe now to keep reading and get access to the full archive.

Continue reading