By Alexandra Marie Charlotte Stahl
As global businesses grapple with the sweeping changes in environmental, social, and governance (ESG) regulations, few are better positioned to navigate this transition than Professor Alexis Vallée. Not only is he teaching the next generation of entrepreneurs how to drive climate action at IE University, but he’s also on the front lines advising major corporations through his company, Vermena. From supermarket chains to multinational manufacturers, Vallée is helping businesses rethink their supply chains and operations in the face of new sustainability mandates.
Following my interview invitation, Professor Vallée shared insights into the world of ESG compliance, the future of sustainable entrepreneurship, and how businesses can stay ahead in an increasingly regulated landscape.
Starting His Company Vermena: ESG’s New Reality
When I asked what led him to create Vermena, Vallée was direct. “It wasn’t a choice—it was a necessity,” he said. As a former consultant working with insurance companies like AXA, Vallée witnessed firsthand the increasing pressure on businesses to report not just financial performance but their impact on the environment. “The arrival of the CSRD [Corporate Sustainability Reporting Directive] this year forced businesses to rethink their strategies. What was once voluntary is now mandatory,” he explained.
CSRD, which came into force in 2024, expands the scope of sustainability reporting requirements to include companies with as few as 250 employees. Vallée explained, “Suddenly, businesses that have never had to worry about carbon emissions are being asked to track their entire supply chains. The scale of reporting has grown exponentially.”
The Supply Chain Challenge: A Test of Corporate Agility
One of the toughest challenges for companies, according to Vallée, is grappling with their supply chains. “Take a supermarket chain like Mercadona. They have thousands of suppliers, all of whom will have to calculate and report their CO2 emissions in the coming years. That’s not a small ask.” The complexity is staggering. From the farms that produce the raw materials to the trucks that transport goods, every step of the supply chain now carries ESG implications.
Vallée emphasized that businesses can no longer ignore their indirect impacts. “It’s not just about what happens within the four walls of your own operations,” he said. “Companies need to assess their entire value chain. And that’s where a lot of them are stumbling.”
For companies with complex supply chains, even suppliers that seem insignificant on a financial level can become major ESG liabilities. “A small shipping company that transports goods across continents may emit a huge amount of CO2. Companies like Mercadona can not afford to overlook that.”
Transforming Talk into Action: A Real-World Case Study
Vallée’s work with Vermena has brought him face-to-face with companies at various stages of their ESG journeys, but the success stories drive him. He recounted a project with a furniture company, an unexpected supplier to large multinational brands like L’Oréal and Mercadona. “They were shocked by their carbon footprint,” Vallée said, smiling. “It wasn’t just the obvious—like the trucks transporting furniture—it was the business travel, the energy use in offices, even the daily commute of their employees.”
After thoroughly auditing the company’s emissions, Vermena helped the client map out a strategy to reduce its carbon footprint over the next five years significantly. “They had no idea the scale of the emissions they were responsible for,” Vallée explained. “But once they understood, they could begin making real changes.”
Opportunities for Entrepreneurs: The Market is Wide Open
With ESG regulations tightening, the demand for compliance tools, consulting, and innovation is skyrocketing. For aspiring entrepreneurs, this presents a rare opportunity. “There is a huge need for services that help smaller businesses align with these new requirements,” Vallée said. “Companies don’t have the internal resources to tackle these challenges alone. There’s a massive gap in the market for solutions—whether it’s software, data analysis, or advisory services.”
He sees artificial intelligence playing a key role in the future of ESG compliance. “AI can do a lot of the heavy lifting when it comes to analyzing data and identifying inefficiencies in a company’s operations. It’s going to be a game-changer for businesses that need to make rapid adjustments,” he noted.
Balancing the Classroom and the Boardroom
Given the demand for his expertise, it’s striking that Professor Vallée still makes time to teach at IE University. When I asked why he choose to teach at IE University, knowing that his business is highly demanding and booming, his answer was clear and passionate. “Both of my parents were teachers. For me, it’s not just about advising businesses; it’s about helping the next generation of entrepreneurs think critically about sustainability and innovation.”
Vallée’s enthusiasm for education, connecting with people, as well as getting inspired by other people’s ideas and backgrounds is palpable. He sees the classroom as an incubator for new ideas. “The students are incredibly diverse, and that leads to fascinating discussions,” he said. “My goal is to inspire at least one team to take their project beyond the course. The real-world application is where the magic happens.”
Looking Forward: A Vision for Sustainability
As our conversation came to a close, Vallée reflected on the future of sustainability and entrepreneurship. “We’re at a turning point,” he said. “Sustainability is no longer a side issue. It’s at the core of how businesses will operate going forward. But it’s not enough to comply with regulations—we need to innovate beyond them.”
His final words were a call to action for businesses and entrepreneurs alike: “If you’re only thinking about meeting the minimum requirements, you’re already behind. The companies that thrive will be the ones that see ESG as a driver of opportunity, not just a burden.”
For the students at IE University—and indeed, for businesses around the globe—Professor Vallée’s insights serve as both a warning and a source of hope. The landscape of corporate responsibility is shifting, and those who adapt will not only survive but lead.
Featured image courtesy of istockphoto.com
