Sustainable business development: From a challenge for the largest companies, to a necessity for companies of all sizes. Are you ready for the future?
Demands for sustainable actions and documentation are increasing at an accelerating rate. If you haven't started yet, or are lagging behind, it's time to pick up the pace. A value-adding sustainable focus should be the cornerstone of any company strategy.
A sustainable attitude is to be as prepared as possible for the future and avoid the company ending up in a process of weathering. Treat yourself and your colleagues to experience enthusiasm and pride by being at the forefront of the commitment to sustainability, rather than lagging behind and feeling the whip in the back. I promise that taking action yourself, anchoring ambitions with colleagues and measuring progress creates commitment and innovation. It's a carrot that tastes extra good.
If you are not forward-looking, your company may miss out on important customers, suppliers, partners, employees, financing opportunities and investor appeal. And if you feel the whip , there is a far greater risk of stepping too slowly and incorrectly, and thus not achieving what could have been good steps forward on your sustainable path. Remember the carrot when developing a sustainable business strategy.
What does it mean to have a sustainable business strategy?
Being sustainable is about achieving socially beneficial goals that contribute to the UN's Sustainable Development Goals. A sustainable business strategy ensures that a company's products and services contribute to sustainable development. Here you have to balance economics (becoming profitable over time), ecology (taking care of the planet) and social conditions ( taking care of your people).
For conscious customers, partners and investors who themselves value a sustainable pattern of action, it is important to emphasize quality and transparency in company reporting.
ESG (Environmental, Social, Governance) is a reporting framework used to evaluate companies in relation to how their business performs, and also to identify risk areas in relation to sustainability.
E – Environment – the company is challenged with the aim of reducing resource consumption, greenhouse gases and managing environmental risks.
S – Social conditions – the company is challenged in relation to its social, cultural and human factors such as diversity, inclusion and employee engagement.
G – Corporate Governance – the company is challenged in terms of how it is run in terms of managers, board members, leadership, etc. and focuses on avoiding things like bribery, corruption, and lobbying.
The regulations are evolving by tightening
The introduction of the EU Taxonomy Regulation from 2022 is a good example of such tightening . This is the mainstay of the plan for the EU's green growth strategy ("EU Green Deal").
Through clearly defined environmental goals, the scheme will contribute to a common understanding of which investments are sustainable. The goal is to shift capital and direct investments to more sustainable companies and production methods.
By defining a business strategy and acting in line with the EU's environmental objectives, you will be able to reduce risk and gain a competitive advantage for your company. What is sustainable will evolve in line with what is happening regulatoryly, and what is established as best practice in the different markets a company operates in.
The EU's taxonomy regulation is perceived by many as something large and confusing. In the future, it will be challenging for companies to try to hide if they do not act in line with defined environmental goals. The six environmental goals you need to prepare for are the following:
- Climate change mitigation
- Climate adaptation
- Sustainable use and conservation of water and marine resources
- Transition to a circular economy
- Pollution prevention and control
- Protection and restoration of biodiversity and ecosystems
How to establish and implement a sustainable business strategy?
What should characterize your company beyond being profitable? What goals should the company's work on sustainability have?
To turn words into action, defined sustainable goals must guide behavior, influence strategy, be long-term and live far into the future. A forward-looking company works actively and continuously with sustainable business development to increase customer base, build relationships with partners, retain skilled employees and attract new ones.
Look, and seize opportunities!
Defining what sustainability means for the business must be done with an outward-looking view in relation to the markets the business operates in . Understanding and predicting changes and needs in a sustainable future provides the opportunity to seize the opportunities the company has.
Insights that create a broad and rich picture, a picture that includes a wide range of stakeholders will give a company far more opportunities than a self-portrait. It is only in such a shared picture that a circular society can be built. See, and seize opportunities has been my mantra as a company leader for all these years.
Understand your stakeholders
In a sustainable future perspective, the following stakeholders are relevant to the company : Customers, competitors, suppliers, governments, investors, local communities, global communities.
You need to understand which environmental and social aspects create attractiveness for different stakeholders and will give your company long-term success. Consider what are the positive and negative impacts in relation to the current position and future opportunities.
Seek collaboration in sustainability efforts
The potential for profit is only realized when the company adapts itself so that socially beneficial social and environmental goals are achieved in an interactive community. To achieve this, it is essential to seek cooperation and partnerships with relevant actors who contribute to increasing the quality of the work. In collaboration, sustainable business development can proceed faster and thus provide increased advantage and competitiveness.
Sustainability as a criteria in competitions has been incorporated into many industries, and all industries will experience further sustainable distortion of competition. The business community itself has been at the forefront of this development and with the "EU Green Deal" the work will gain further momentum.
Innovation, business development and collaboration will increase as new connections are constantly being made between existing and new organizational numbers. Make sure your company becomes an attractive partner in the "green shift".
10 important steps to ensure a sustainable path for the company
- Define what sustainability means for your business
- Define the company's future sustainable ambition
- Involve the organization in all sustainability work to ensure a rooted sustainable culture building with commitment
- Incorporate sustainability into strategic objectives, business plans and action plans.
- Put sustainability into practice in decision-making processes
- Integrate sustainability into business management and reporting with clear lines of responsibility
- Seek collaboration and partnerships with relevant actors that contribute to increasing the quality of work and achieving sustainable goals.
- Report progress on sustainable goals and relevant quantifiable indicators
- Communicate sustainable results internally and externally
- Evaluate the work and implement sustainable improvements
Considium assists our clients in establishing and implementing a sustainable strategy so that the company's competitiveness increases. Through management by objectives and performance management, it is ensured that goals are achieved. We can be a guide, driver and support in the sustainability work in the organization. Innovation for more sustainable business models, services and products can be part of our work.
