Competitive advantage or license to operate? Sustainability as a sales strength in the U.S. market

“Various shades of green” is how Chris Monoson, Rexel USA’s Senior VP and Northeast Region President, describes sustainability in the American electrical distribution market. Chris highlighted three distinct topics that come up in customer conversations: sustainability as part of the company’s strategy, sustainability as an opportunity for operational efficiency and cost savings, and sustainability as a personal passion. Across the industry, companies approach sustainability in different ways: some have formal environmental, social, and governance commitments embedded in their strategies, while others are primarily focused on the operational and cost-saving benefits of energy-efficient initiatives. Whatever the starting point, sustainability can create value across the supply chain and serve as an important business enabler, according to experts from Rexel, customer Starline (a Legrand brand) and supplier ABB – all companies that have made sustainability an important part of their strategies.

A valuable conversation starter

Compared to Europe, where sustainability reporting requirements remain more formalized, the U.S. market continues to evolve at its own pace. “It’s a topic that can mean different things to different people,” said Chris Monoson, “so it’s important to approach it thoughtfully.” He noted that personal motivations around environmental protection may vary widely, particularly among small-to-medium contractors and customers in different regions of the country. At the same time, sustainability can resonate strongly when framed in practical terms – for example, through reduced waste, lower operating costs, or labor savings from less frequent trash pickup. “You have to understand who you’re talking to and why. It’s important to meet customers where they are in the process. We’re experts in this field, and there’s a wide range of ways we can help our customers succeed.” he said. He encouraged salespeople to lead with the business benefits and to ask whether a company has a sustainability charter or related goals, because Rexel is ready to support customers on that journey. “Sustainability is core to our mission worldwide,” Chris concluded.

A requirement for maintaining and growing customer business

In many cases, strong ESG performance can help strengthen customer relationships and support long-term growth. Darryn McCabe, a Branch Manager in Pittsburgh, described a defining moment in the early 2000s, when a major customer, Legrand, introduced a purchasing policy that included corporate social responsibility. “We realized it was more than just recycling cardboard, and that to maintain our share and have competitive advantage, we needed a story around CSR.” Since then, Rexel Group has achieved EcoVadis Gold certification, placing the company in the top 5% of companies worldwide for sustainability performance, based on an assessment in four areas: the environment, labor and human rights, ethics, and sustainable procurement. “Like the quality certification we underwent at around the same time, it’s helped us capture additional volume.” More broadly, Rexel has made meaningful commitments to sustainability that support the company’s strategy and align with stakeholder expectations across markets.

A customer perspective: ingrained in supplier selection

This alignment on ESG values is seen as an important advantage by customers like Legrand, which buys ABB circuit breakers from Rexel USA. Amber Furr, Senior Director Strategic Sourcing at Legrand, said sustainability is embedded in its culture and supplier selection process. In particular, Legrand encourages suppliers to commit to reducing carbon emissions by at least 30% by 2030, representing 70% of purchased goods emissions. “For the future, we’re focused on growing partnerships with suppliers who share the same level of commitment to being sustainable and responsible.” She added that Rexel’s supplier, ABB, contributed by providing product environmental profiles (PEPs) for their components, helping Legrand share lifecycle impact information with customers. That support was highly valued, along with “the commitment throughout the entire value chain.” In addition, Legrand, which has achieved an EcoVadis Platinum medal (global top 1%), has asked its major suppliers to participate in EcoVadis Human Rights assessments to ensure they are operating ethically.

A supplier perspective: committed to sustainability in product design

At ABB, another company that has achieved an EcoVadis Platinum medal, Market Development Manager Junkai Wang described how sustainability leadership can support customer needs and create new business opportunities. Specifically, three strengths are built into ABB products. First, they come with third-party certified environmental product declarations (EPDs), which are increasingly important for many customer programs and bid requirements, including data centers and contractors pursuing LEED certification. Dave Griffith, National Account Manager at Rexel USA, also noted growing demand for EPDs from customers. Second, ABB continues to evolve its portfolio toward greater circularity: “When you’re selling an ABB product, you’re really offering solutions for multiple lifecycles, since they’re repairable, upgradeable, and recyclable.” And third, products in the ABB EcoSolutions™ program offer strong environmental performance, supported in part by the fact that ABB generates at least 80% of its local revenues from products manufactured in its key markets in the United States, Europe, and China. “This is a strong business angle for companies that need to track and report Scope 3 emissions.”

A prerequisite: cooperation

One clear message from the webinar is that sustainability works best when there is strong cooperation across the supply chain – which is why all three companies have sustainable supplier policies or programs in place. In practice, business partners can go even further by working together to raise awareness of sustainability challenges, provide customers with the information they need to make informed decisions, explain the latest eco-friendly innovations, and jointly develop circular economy services such as equipment recovery and recycling. This is the idea behind Rexel’s global Sustainability Shapers program, which launched in late 2025 with selected sustainability leaders, including ABB and Legrand.

Another important takeaway is that ESG performance is becoming increasingly relevant for many customers. As John Kerkhove, Vice President Supplier Relations at Rexel USA, said, “Regardless of any short-term or changing political agendas we see worldwide, sustainability remains a long-term priority for many companies, their customers, and suppliers. We’re here to help others navigate that.” ABB’s Junkai Wang concluded, “Sustainability is no longer optional. It really is a competitive requirement. Your customers face pressure from regulators, investors, and their customers, and they need suppliers who can help them meet those sustainability requirements.”