When managers comment on the topic of sustainability, they often suspect that it is primarily a question of “greenwashing”, that is, green shop window politics.
According to a new study, however, the German business elite are increasingly serious about their efforts to protect the climate and the environment.
Accordingly, in the vast majority of those surveyed, sustainability has now caught up with or even replaced digitalization as the top topic.
More and more companies are setting a fixed target for when they want their own CO2 emissions to be reduced to net zero.
But there is still a long way to go: On average, the participating corporations need another 14 years to achieve this target.
These results were presented at the climate summit in Glasgow.
Sven Astheimer
Editor responsible for corporate reporting.
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The qualitative study is based on more than twenty conversations with leading figures from the German economy. These include the CEOs of many DAX companies such as Christian Sewing (Deutsche Bank), Ola Källenius (Daimler), Markus Krebber (RWE), Joachim Wenning (Munich RE), Rolf Buch (Vonovia), Timotheus Höttges (Deutsche Telekom), Theodor Weimer (Deutsche Börse) and Martin Brudermüller (BASF). Otto boss Alexander Birken, ThyssenKrupp boss Martina Merz, rail board member Berthold Huber and Henkel supervisory board chairwoman Simone Bagel-Trah were among others involved. The study was carried out by the FUTURIST Institute for Sustainable Transformation, the Potsdam Institute for Climate Impact Research and the management consultancy Bain & Company.
As the survey showed, executives face one problem in the implementation of the sustainability policy in their companies: Almost two thirds of the respondents stated that sustainability and economic efficiency are still opposites in their reality. Johan Rockström, Director of the Potsdam Institute for Climate Impact Research, observes, however, that companies are increasingly starting to approach sustainability strategically, creating added value for society and thereby opening up new opportunities. "It is crucial that economic development takes place within the safe framework of planetary boundaries."
Walter Sinn, Germany boss at Bain, assumes that this tension between ecology and economy will increasingly dissolve. "A number of sustainability projects, especially in the area of the environment, are already paying off." This process will gain momentum. In the future, according to Sinn, the costs for more sustainability will be significantly lower than the chances of additional sales with sustainable products. Investors in particular are already demanding a clear orientation towards more sustainability from many companies. Many of the respondents viewed their efforts to date quite critically. On a scale from 1 to 10 (the higher the more satisfied), they rated them only 5.6. After all, they gave themselves a 7.3 for attitude and sensitivity.
The authors of the study have also defined ten steps with which companies can systematically embark on the path to greater sustainability. First and foremost, this includes a clear definition of the goals, which in turn must be measurable. Integration into the company's financial management is therefore also important. One of the soft factors is a cultural change in the company that anchors the topic in the workforce. The executive floor, in turn, has to accelerate this by exemplifying the goals “and awakening the passion for them in the organization,” says the paper.
According to the authors, managers generally play a central role in the success of sustainability efforts: They have to act as drivers, communicators, conductors and reminders in this process - all classic roles of superiors in operational change processes.
These services should in turn flow into the remuneration systems.
If sustainability goals are missed, the annual bonus must also melt.
Futurist founder Tobias Raffel urges everyone involved to act quickly with a view to climate change.
"Only together can business and society effectively limit the consequences of climate change." Climate researcher Rockström points to the high pressure to act: "At the end of 2021 there is no longer any reason to doubt or hesitate."