For large investors, the issue of sustainability in their investments is becoming increasingly important. On the one hand, this means a greater desire on the part of insurance companies, pension funds, corporations or foundations to invest money in sustainable investments. On the other hand, confidence in such investments is expressed in the fact that investors will sideline 80 percent of the exit from sustainable investments – the reason for this is closely related to the company’s mission, but of course also the realization of the investment in the future market. In addition, customer demand plays an important role in the decision.
Engine for growth and innovation
What ultimately drives a company’s sustainable growth can vary widely. After all, globalization is a ubiquitous factor that can affect the value chains of mid-sized companies. An innovation engine – and that means not only product innovation, but also the entire management of the company, including raw material supply, logistics, sales, etc. – is therefore necessary to harmonize the most diverse sustainability interests.
Example: strategy
Perhaps the most difficult step is a strategic reorientation, as it requires a departure from the company’s old ways of thinking. At least in the long term, growth can no longer be achieved by simply maximizing profit. Economic, ecological and social added value is required in all areas of the company. Responsible use of resources, fair working conditions, transparent production, social contribution, etc. All of that must be firmly entrenched in your own company.
Example: product innovation
The “reward” for creating sustainable products is often significant sales growth. Anyone who optimizes resource consumption, produces less CO2 emissions, and avoids harm to the environment through product disposal, provides (potentially) reasons for customers to buy their own products.
Example: production and logistics
In the production chain, the company bears most of the operating costs. These optimization measures to reduce costs can in turn be combined with measures in the sense of sustainable management. Particularly in the areas of energy, water and wastewater and raw materials, cost reductions can be achieved through increased efficiency. At the same time, conservation of naturally generated resources conforms to the concept of sustainability.
Challenge
At this point it should be clear that the opportunities and challenges of sustainable governance cannot be easily separated from one another. The three most important basic elements of economic sustainability are also inseparable, as they combine into one larger whole. However, each environmental, economic and social dimension has its own requirements that can be managed effectively through a sustainability platform.
