Sustainability and climate protection - a real opportunity instead of a marketing trend

Climate change, Fridays for Future, the energy transition - today, nobody can really ignore the topic of sustainability. In the wake of climate change, ecological sustainability has gained particular attention. According to a recent Statista survey, almost 40 per cent of Germans held companies responsible for solving global environmental problems. They seem to have realised this long ago: Everywhere you read "organic" and "recycled", logos suddenly shine in a new, green guise. It feels like every second company is increasingly offering regional products or planting entire new forests.

But have all these companies really gone green? What is behind the growing sustainability trend? And how do you determine whether sustainability is being used as a pure PR stunt or whether the course is really being set towards a green economy?

The reality - who would have thought? - is much less green than it seems at first glance. Although everyone is talking about climate change, there are often no real consequences for the business models of German companies. Despite recent environmental disasters, heavily polluted oceans and the serious threat to the rainforest, as documented by the sixth IPCC report, many board members and managers see sustainability more as a reputational risk than as a lever for value creation or an opportunity for growth.

According to a survey by HR consultancy Russel Reynolds Associates, 46 per cent of German board members only take sustainability measures for marketing purposes. They want to be seen as socially responsible and stand out from the competition with a sustainable image - or at least not lag. According to the study, only one in four managers believe that their own company actually has a sustainability strategy that is clearly communicated and implemented. And only 31 per cent of employees believe that their CEO is sufficiently committed to sustainability issues.

In an international comparison, it is striking that in Germany, younger managers in particular are hardly involved in sustainability issues. Only 26 per cent of young German managers have dedicated themselves to three or more tasks in this area in recent years - the global average was 40 per cent. According to the study, everyone agrees that climate change and environmental degradation are the greatest threats to society. But why is there still so much talk and so little action?

Many people are working on reducing their carbon footprint and living more sustainably in their everyday lives. Essity's Green Response Study shows that 40 per cent of Germans have adopted a more sustainable lifestyle since the pandemic. They have become more aware of the impact their behaviour has on the environment and are more aware of the negative effects of some products and services than before. 91 per cent of people who have changed their lifestyle during the pandemic want to maintain it in the long term.

The study also revealed that 75 per cent of survey participants believe that German companies have a great to very great influence when it comes to protecting the environment: consumers expect producers to reduce the use of chemicals, reduce plastic packaging and use recycled materials. They also want products to be manufactured that are reusable or 100 per cent recyclable, regional, sustainable raw materials to be used and companies to reduce their energy and water consumption in addition to their production waste. 

But even if we do achieve the 1.5-degree target and reach carbon neutrality, not everything will automatically be fine. These targets are only the minimum requirements for a future worth living. Many decision-makers often orientate themselves on this minimum level of necessary change. They often don't even achieve this, and sustainability becomes a barrier to transformation. Yet it is the exact opposite: a springboard for innovation and future viability that helps companies to no longer be part of the problem, but part of the solution.

So much for the theory. Practical implementation is definitely not easy and cannot be realised overnight. Every industry and every company has to face its own challenges in the area of sustainability. However, there are also simple first steps that are a good start.

First of all, it is important for a brand to ask itself which sustainability issues are actually relevant to it. While supply and production chains play a major role for fashion providers, banks and financial service providers are more concerned with sustainable investments. Decision-makers also need to recognise that sustainability does not just mean acting in an environmentally friendly way. Sustainability can also be of an economic or social nature. It can also mean, for example, that a company is so attractive to young talent that they commit to it in the long term, or that it ensures that its suppliers also work under fair conditions.

Our customer Rainforest Alliance is also committed to this. The NGO has recognised that human rights and sustainability go hand in hand. The Rainforest Alliance brings together producers, companies, governments, non-profit organisations and consumers to promote human rights in the regions where they work. They are committed to changing business practices and government policies, as well as promoting the rights of their partner communities through their certification system and sustainable development initiatives. For example, 96 per cent of workers on Rainforest Alliance-certified tea plantations in Tamil Nadu, India, receive paid annual leave and sick pay, and 100 per cent of certified banana farms surveyed in Colombia have a health and safety specialist.

Once the most important topics have been identified, it is important to prioritise them and determine which sustainability topics are most relevant to the company's business. Of course, this does not mean that less relevant topics should be neglected. But if you want to make a lasting change, you should not work on too many fronts at the same time.

Every company should also ask itself what impact it is already having on the environment, economy and society - whether positive or negative. A wide range of opinions, for example via online surveys, should be consulted in order to obtain as neutral a view as possible of the current situation. What exactly this impact looks like varies from company to company. Food companies that support small farmers and focus on regional products already have a positive impact on society and the environment, as do software companies that produce learning apps or promote young talent, diversity and inclusion. Many fashion and technology companies, on the other hand, have a negative impact due to their high resource consumption, large amounts of waste and questionable working conditions. This analysis reveals the areas in which initial steps towards sustainability have already been taken and where there are approaches that can be built upon.

The next step is to define goals for the future. These should of course be realistic and achievable, and ideally broken down into short, medium and long-term milestones. These goals can then be used to create a sustainability strategy that the company can communicate transparently to the outside world. In this case, the term "greenwashing" would be completely inappropriate. The companies reveal that not everything is 100 per cent sustainable. However, they show that they have recognised their construction sites and are working on them - not to appear "green" to the outside world, but to inspire others to also address the issue.

A company that is already setting a good example is our new customer Grünfin. Founded in Tallinn, Estonia, in 2020 and launched in Germany in March 2022, the company has been committed to sustainability from the outset. With its platform for sustainable investments, Grünfin is aimed at anyone who cares about the impact their actions have on the world. Investors can choose between three investment focuses: Climate, equality or health. Grünfin directs financial resources in such a way that human life on our planet becomes more sustainable. The two founders are filling a gap, as there has been a lack of investment platforms that truly stand for personal values and a sustainable future. Social issues, such as the particularly large pension gap and gender pay gap in Germany, play a major role for Grünfin. The company wants to help solve these problems and encourage more women to invest on the basis of their values and take their finances into their own hands competently and confidently.

Another role model when it comes to sustainability is outdoor outfitter Vaude. Since the company has been managed by the founder's daughter Antje von Dewitz, it has made environmental compatibility and climate protection its top priority - with outstanding success. Since she took over the management, Dewitz has been able to increase the company's turnover by two and a half times and in the Covid year 2021, Vaude grew by 17.4 per cent to around 130 million euros despite all the adversities. Since 2012, work at the company headquarters on Lake Constance has been climate-neutral, and since 2022 all of the company's products have also been climate-neutral. As a pioneer in sustainability, Vaude also committed to ambitious, science-based climate targets in 2019. Vaude has set itself far-reaching global reduction targets in order to contribute to meeting the 1.5-degree target. More than half of the materials used are now bio-based or recycled, the company's vehicles are currently being gradually converted to electric and the company aims to halve its emissions worldwide by 2030. This is a mammoth task, as it also needs to persuade its global production partners to switch to renewable energies.

Brands such as Rainforest Alliance, Grünfin and Vaude show how sustainability can advance and enrich companies. Not a trace of loss of sales or image, no signs of greenwashing - quite the opposite. Young consumers in particular have recognised the threat to our planet and are specifically looking for providers that meet their growing sustainability requirements. Those who ignore this change are squandering growth opportunities and will not be able to keep up with the competition in the long term. Be it for the good of the planet and future generations, or to ensure the competitiveness of their own company: Every change, no matter how small, towards sustainability and for the good of the climate is a step in the right direction, and every single one of these steps counts. As already stated in our article on the circular economy: Only together can we make a lasting impact and bring about positive, green change.