Collaborating to compete in furniture: sustainability rewards supply chains, not individual companies

Furniture companies that collaborate along the supply chain and beyond the boundaries of their own sector are the ones that innovate the most, invest the most, and, above all, perform better, the Monitor for Furniture Pact observes at the conclusion of a three-year research cycle.

The result is all the more interesting because it comes at a time of strong regulatory pressure and macroeconomic uncertainty. And yet, the research shows that the real driver of change is not regulation, but the market itself. The companies furthest along on sustainability are anticipating obligations by building partnership ecosystems that become genuine accelerators of innovation.

Sustainability and emerging technologies

The research fits into the growing debate on the role of sustainability as a competitive lever in manufacturing supply chains, with a focus on the wood-furniture supply chain. This is a sector that, while demonstrating resilience, with global production amounting to $471 billion in 2024, is now operating in an unstable context, amid geopolitical tensions and new European rules.

In recent years, the regulatory framework has become more stringent and more complex: from mandatory ESG reporting (CSRD) to supply chain due diligence (CSDDD), all the way to ecodesign requirements and product traceability. Sustainability no longer concerns only processes, but reaches the heart of the product and of supply chain relationships.

In this context, the following questions are asked:

• What truly distinguishes the best-performing companies in terms of sustainability?
• What role does supply chain collaboration play in generating these results?
• How are emerging technologies, such as artificial intelligence, reshaping the relationship between sustainability and competitiveness?

Four thousand companies and seven dimensions

The study brings a three-year cycle (2022-2025) to a close and is based on a particularly robust methodological framework, combining qualitative and quantitative analysis.

On the one hand, there is a small panel of Monitor companies analyzed in depth (interviews, workshops, questionnaires). On the other, there is a much broader sample built in several stages:

• More than 4,000 companies initially selected,
• About 2,200 companies with sufficient data for the analysis.
• 319 ESG reports analyzed using artificial intelligence tools.

The evaluation framework considers seven ESG dimensions across the entire value chain: from strategy to material footprint, through to supply chain partnerships and social impact.

Smaller companies standing on the shoulders of larger ones

The data show that a relationship exists between supply chain partnerships and performance: the most collaborative companies are also those with the best ESG results, greater innovation, and greater resilience. Statistical analyses confirm that strategy, innovation, and material resource management are all positively correlated with the development of partnerships along the supply chain.

Overall, the companies in the supply chain are making significant progress: the average ESG score rises from 32.8 in 2024 to 38.5 in 2025. However, the system remains divided: between 20% and 25% of companies are already “innovative” across the various dimensions, a substantial share is still in transition, and a significant portion remains behind, especially among SMEs.

The most mature categories are those linked to compliance (ethics, certifications), while more strategic areas, such as business model transformation and supply chain partnerships, are less developed.

Only 71 companies out of 319 report using AI, but among them higher levels of performance are observed. The impact is concrete across the entire value chain: design (eco-design, material selection), production (reduction of waste and defects), logistics (optimization and emissions reduction), and end-of-life (recycling and circularity). AI thus becomes a key enabler of sustainability, especially in the phases closest to the core business.

Social initiatives are growing, but they often remain fragmented. The data nonetheless show that companies investing in internal well-being (employees, safety, training) also generate more value for external communities.

The Italian supply chain is largely made up of SMEs, which are often less equipped to deal with regulatory complexity. However, collaboration with larger companies also allows smaller players to connect to innovation and sustainability pathways.

Collaborative ecosystems

In light of these results, managers should view sustainability as an ecosystem issue. Companies that want to compete must:

• Invest in structured supply chain relationships.
• Integrate sustainability and innovation, including digital innovation.
• Go beyond compliance, turning sustainability into a strategic lever.

In a context marked by geopolitical instability, high energy costs, and growing regulatory complexity, collaboration also becomes a tool for resilience.

Regulation is necessary, but not sufficient. Market dynamics and relationships among companies can accelerate the transition more quickly than rules can. Fostering collaborative ecosystems, including through incentives and sharing platforms, can be more effective than multiplying obligations.

Stefania Carraro et al., Monitor del Furniture Pact 2025. Ripensare la filiera dell’arredo: scelte strategiche e innovazioni per una crescita sostenibile. (Rethinking the furniture supply chain: strategic choices and innovations for sustainable growth).