Do good and profit from it!

Sustainable thinking, management and investment become a success factor

In 2018, Germans spent almost 11 billion euros on organic food – 5.5% more than the year before. (Source: German Organic Food Association).

The global demonstrations on September 20, 2019, were among the largest in history and showed that it is now no longer just the younger generation that is demanding that the current climate crisis be addressed with effective measures.

The view of the industry is getting stricter. And, supported by new technical possibilities, more and more consumers are opting for sustainable alternatives to classic products. Be it in food, clothing, mobility, and investments: More and more people are basing their purchasing decisions on criteria such as environmental compatibility, fair production conditions, climate protection, and sustainability. This is increasing the pressure on the industry to make its business more sustainable.

Consumers now expect large companies, in particular, to assume responsibility not only toward their shareholders, but also toward the environment, employees, suppliers, and society. Corporate value and success are now no longer measured by business results alone but by the so-called “triple bottom line” of economic, environmental, and social results of the business model.

Why sustainability is an important part
of corporate strategy.

1

Corporate strategies must take global megatrends into account

Digitalization is bringing new information and communication channels, the globalization of value creation is bringing new competition, the pressure of the capital markets is threatening long-established practices, the scarcity of natural resources is calling for new business models, and climate change is demanding both political action and the contribution of every single company and individual.

Climate protection has come sharply into focus as a topic over the past year. It must be considered as a measurable factor for success just like other megatrends – e.g. increase in social inequality.

Companies that fail to adapt to such global movements at lightning speed risk losing market share. But that’s not all: employees and external partners also prefer to work in and with companies that create meaning and take responsibility.

2

Sustainable action is lucrative – if it is done strategically

Sustainable measures are often the responsibility of individual departments within a company and are usually undertaken on a regional and unstructured basis.

Only in a few companies is there a master plan for sustainability that bundles synergies and can be positively evaluated in communication.

If sustainability management becomes part of a company’s core strategy, it can be profitable on many levels.

3

Sustainability becomes a differentiating factor

Sustainable action strengthens the positive image of the company. At the moment of the purchase decision, customers prefer to choose the “good” product. In addition, companies that produce sustainably are seen as particularly innovative. This is an important differentiating feature compared to the competition, which strengthens the market position, leads to better ratings and better communication with customers.

Sustainability with the human factor

In the end, you always reap what you sow. This is just as true in project work as it is in dealing with other people. In this context, many people quickly forget that the way they deal with other people in conflicts is a decisive factor for sustainable success. Often, quick success is sought here at the expense of sustainability. At the end of all projects and products there is always a person who has to like it and who buys it – and this person, when he spends his money, wants it to be “customer-friendly”.

Miljenko Jazvac, Maker for the Investment Difference at Consileon