Focus on corporate sustainability

Sustainability is also becoming an increasingly important topic for companies. There are multiple reasons for this. Customer demands, environmental benefits, or a positive public image are key factors that drive and widen the demand for companies to adopt more sustainable practices. This, in turn, can lead to a more stable market position.

The following points illustrate the positive aspects of being a more sustainable business:

Customer demand

Consumers are becoming more environmentally aware and value sustainably produced products and services. This includes a general reduction in waste and fair working conditions.

The benefit to the business is increased customer loyalty, retention or even growth of customers for whom sustainability plays a central role.

Transparency

To be transparent, companies are required to disclose the origin of their products, production processes and their environmental impact.

A transparent presentation of a company's steps towards more sustainable practices can show, among other things, what steps are being taken to optimize the reduction of plastics. By being transparent about their sustainable practices, companies can gain the trust and loyalty of their customers.

Attractiveness

The younger generation in particular values sustainability and wants to see it in their employers. Thus, a company can become more attractive to potential employees by marketing its sustainable business practices. Existing employees can be motivated, which improves the company's work culture.

Efficiency and costs

A company can take a number of steps that are both sustainable and increase efficiency and reduce costs. Examples include minimizing packaging materials or energy conservation measures. Reducing the amount of waste a company generates also reduces the amount of waste it has to dispose of. This ensures that resources are used efficiently and that certain types of waste are not disposed of inappropriately.

Reputation

The increasing demand for companies to operate in a more environmentally friendly manner is also linked to their reputation. Climate damaging practices can have a disruptive effect and therefore pose a reputational risk. This can manifest itself in negative publicity. A more sustainable company therefore has a competitive advantage. Another advantage is risk mitigation, for example from the negative publicity mentioned above.

Changes in corporate sustainability are essential for long-term business viability. Due to climate change, consumer demands are increasing, and companies are taking this issue more seriously.

Corporate practices

There are numerous practices and opportunities for companies to demonstrate, enable, and plan for sustainable management. Some of these are outlined below:

Carbon Footprint Management

Carbon Footprint Management (CFM) should be of great importance, especially for larger companies. In summary, CFM includes the following steps

1. Measure energy consumption

2. Reduce energy consumption

3. Generate renewable energy

4. Communicating CFM to stakeholders

Sustainability Reports

A company's sustainability report shows what environmental and social actions and goals are being taken or have been taken over a period of time and combines this with the economic impact of these practices. This report consists of several areas.

These include:

• Sustainablility strategy

  Presents the company's strategy for optimizing sustainability.

• Social conditions

  Working conditions, supply chains, and other social projects, including those outside the company.

• Environmental sustainability

  What are the company's climate change targets? What is the company's resource use and how can it be optimized by reducing waste, etc.? Does the company use renewable energy?

• Review and Assessment

  Previous goals and actions are documented, analyzed, and evaluated. Measures for further improvement and future strategies and planned projects are defined.

A sustainability report provides transparency to investors and customers and may be required in certain countries. It can also provide a competitive advantage.

Digitization

Digitization in businesses can optimize the use of resources. This reduces emissions and makes processes more environmentally friendly. The benefits of digitizing a business include:

• Paperless work

  Documents can be stored, managed and organized digitally and across the entire enterprise. This is where a cloud system comes in handy, as anyone with access can instantly see changes to documents or the filing system. It also makes it easier to share documents with people outside the company.

• Virtual meetings

  This means less commuting, business travel and the like. For certain matters, physical meetings are irreplaceable, but most regular meetings can easily be held online. Less traffic, like driving, reduces CO₂ emissions.

• IoT technologies

  IoT stands for "Internet of Things," which in a nutshell is the networking of physical and virtual objects to exchange information. For example, an intelligent heating system can reduce energy consumption.