Green-Thumb-Up!

Aligning a company with sustainability is not a compulsory exercise!

Green-Thumb-Up!, The foreign feather / EMCP / 9. October 2024

By Jan-Peter Schacht, Business Advisor in change and sustainability management Why? Because sustainability, understood in all its complexity, will give every company substantial and economic security for its continued existence over the coming decades. Unfortunately, sustainability is increasingly being seen as regulatory nannying rather than as an entrepreneurial necessity. Many companies in all industries have already proven that it is possible to be economically successful as a holistically sustainably operating company. However, this requires an intensive and serious examination of sustainability from a systemic point of view. What are the success factors? Various studies have empirically identified a range of success factors. The first thing to look for is a definition of sustainability that is jointly supported by management. This exercise may sound trivial, but it is the actual “entry ticket” to the complex world of sustainability. A vision and long-term goals should then be defined on this basis. Ideally, a so-called “purpose” definition should be developed. It becomes clear that sustainability, when properly understood, manifests itself in the form of societal, social and economic relevance, which, above all, has an ecological impact. Training and developing a certain basic understanding of the broad concepts of sustainability considerations are also essential, as it is the employees and managers who must successively ensure that the company positions itself more sustainably in its processes, its products and with its stakeholders. After one or more sustainability frameworks have been selected, a roadmap is developed that describes the next few years of implementation, with relevant adjustments. A business case is described to make the change economically viable. It is imperative that this shows that the change will initially cost money in the first few years. At the management level, a management culture will have to be established that rewards and incentivizes sustainability and, above all, promotes innovation. Innovation, combined with collaboration with all stakeholders, is the key to a successful transformation. © Jan-Peter Schacht What should not be done? The change to a more sustainable company must be seen as a journey that never ends. There will never be a state of 100% sustainability in the scientific and operational sense. Patagonia, which is considered one of the most sustainable companies, announced this consideration in 2023 in a remarkable social media post, thus inspiring reflection. Haste is also to be avoided. A reference to all the colorful UN SDGs on the homepage, an electrification of the vehicle fleet, solar panels on the roof and beehives in the garden do not make a company sustainable. This is greenwashing or, as it is called in relation to the UN SDGs: green rainbowing. What can be achieved and why is it important? By gradually positioning itself to work, produce and have an impact in a more sustainable way, the company will be better prepared for the future and more stable. All parameters are currently set up in such a way – and this will not change – that only companies that are sustainably positioned will survive in the long term. These are the requirements of banks and insurers, legislators and, last but not least, all other stakeholders: employees, customers, suppliers and all social groups. All of them expect a comprehensible and well-thought-out orientation towards more sustainability in the short or, at the latest, long term. Ultimately, it should also be the motivation of every entrepreneur to position themselves more sustainably in the long term in relation to their environment and society. How should you proceed and what are the benefits? In addition to considering the success factors mentioned above, it is advisable to develop a sustainability agenda. This forms the basis for internal and external communication with all stakeholders. It is the foundation for financial reporting and ensures transparency in banking communication. After intensive discussions at the management level, the vision, purpose and long-term sustainability goals are formulated in the sustainability agenda. These are broken down operationally and governance is adapted accordingly. In addition, the communication content is formulated, which explains the change internally and externally. A sustainability agenda is thus the framework that describes the change over the next few years and details the content of the change in a comprehensible way. What should not be expected? The transformation to a sustainable company will never end and should therefore not be seen as a classic project in which success comes quickly. Success will come in stages, but these may be interrupted by setbacks. The transformation will require money, time and intensive discussion. No change in recent decades has been so complex. The many success stories of companies that have embarked on this journey show what is possible. However, the most important message is that companies that adopt a more sustainable approach can and will be economically successful. About the author: Jan-Peter Schacht is an internationally experienced consultant, project manager, interim manager and business advisor. He has been advising small companies through to major international corporations in various industries on change and sustainability management for over 28 years. Find out more about Jan-Peter Schacht here . Externe Links, die auf Seiten außerhalb des Web-Angebots von EMCP führen, sind mit dem Symbol gekennzeichnet. Weitere Informationen: Datenschutzerklärung.

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ESG implementation in companies

Green-Thumb-Up!, It ain't necessarily so / Johannes Zapotocky / 21. March 2024

Where there’s a will, there’s a way – concrete action makes all the difference The urge to change can only be fulfilled by someone who is willing to enter unknown territory. And to accept that the unpredictable can only be influenced to a limited extent. But as important as a strong will is, contrary to a common saying, it only counts on its own when concrete action follows. With regard to sustainability and the concept of ESG, the connection between drive and actual action is particularly important. Easier said than done! This is because regulations as reliable signposts are usually only issued with some delay. This can also make access to supportive public funding more difficult. Despite all these adversities in implementation, we receive many impulses that show how one can position oneself – also economically – with and in economic issues. One of these impulses comes from a Salzburg-based company that has not only taken up the challenge of ESG, but has also acted in advance of laws and regulations. This company operates in an industry that has not really made a name for itself in the past through environmental protection. Nevertheless, it is regarded as one of the most environmentally friendly companies far beyond Austria’s borders, as evidenced by numerous national and international certificates and awards. Although a single company may only have a small impact on overall emissions, the management initially acted as a role model without any regulations or obligations, but out of conviction. The result: a practical example of ESG implementation that is not mandatory for the size of a small SME and is therefore far ahead of previous standards. The path to becoming a green company without any initial legal stops was not an easy one, but this much can be revealed: the goals were achieved primarily because the entire team pulled together out of conviction – and continues to do so. This also resulted in an economic consequence, as the ESG implementation led to a new USP and created a completely new component of an “industry king” with a lighthouse character for marketing. The sum of small but decisive activities for a meaningful footprint is what progress means. This article provides impressive proof that corporate development towards ESG makes sense from both an ecological and economic perspective, motivates employees and brings decisive competitive advantages. Read more about this topic and the associated operation next week! We gladly accept suggestions for your own experiences with regard to the implementation of ESG! Please register! Footnote

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Green-Thumb-Up!

Green-Thumb-Up! / Johannes Zapotocky / 21. December 2023

Stretched upwards, it signals approval, goodwill or simply positivity, but pointing downwards it could even act as a death sentence. It is often pressed to bring good luck, and in a double version it is also turned into fadesse. It can be used to describe fairy-tale characters or even to determine mathematical values. It is therefore a classic generalist and, apart from that, the smallest but strongest finger on the hand: the thumb. A special function is attributed to it when it comes to processes for nature. Even if the origin of the phrase “having a green thumb” is not clear, most people know what it means: if a person succeeds in growing even the most difficult plants, they are said to have the famous colorful Digitus Primus Manus and therefore a talent for handling plants properly. Although you can watch nature grow and flourish in many places, in public spaces or on your private balcony or garden, there is more to having “green fingers” than you might initially think. To quote another proverb: “No master has ever fallen from the sky”. Having an environmental awareness is just as important as acquiring knowledge. And regardless of whether people first acquire their green fingers theoretically or through practical experience (“learning by doing”), one thing above all can be assumed: a sense of sustainability. The combination of a sustainable approach to nature and a positive signal has led to the development of our Green Thumb-Up companies. These stand for the central tasks of Environmental Social Governance, or ESG for short. Our Green-Thumb-Up symbolizes sustainability in an ecological, economic and social sense. It starts where certificates (“greenwashing”), which are often only acquired due to external pressure, are limited in their function and motivates people to think and act responsibly on an ongoing basis. Which instruments are helpful for this depends on many factors. Green-Thumb-Up stands for initiatives by energetic individuals as well as companies. Feel free to contact us and get to know selected Green-Thumb-Up activities! Either use the contact form or write to office@emcp.org.

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