A sustainability strategy is relevant for any company that wants to stay competitive in the future. The market for sustainable products and services is growing—and so are general expectations that businesses align their work and production structures with ecological and social development goals. Establishing and consistently pursuing a sustainability strategy is therefore proving to be one of the most important innovation drivers for companies.
Mandatory sustainability strategy for companies
From 2024 onward, the EU is tightening its statutory requirements on sustainability reporting, significantly expanding the range of companies affected.
Going forward, even companies with as few as 250 employees may be required to disclose, in line with major reporting standards such as the Global Reporting Initiative (GRI) or the German Sustainability Code (DNK), whether they pursue a sustainability strategy.
This is also increasing the pressure on smaller companies to voluntarily adopt a sustainability strategy in order to work on sustainability transparently and effectively.
Sustainability strategy as a complement to corporate strategy
A corporate sustainability strategy is always designed for a long-term horizon ranging from two to 10 years or more—which makes it well suited as an extension or complement to the core corporate strategy.
Like the corporate strategy, it ideally affects the company's core processes and is systematically integrated across all areas and departments. Firmly anchored in the corporate structure, a sustainability strategy thus exerts a direct influence on day-to-day operations.
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Defining a sustainability strategy for companies
As part of their sustainability strategy, companies first determine the relevant fields of action in which they want to become more sustainable. Fields of action can include products and supply chains, finance, emissions, nature conservation, water consumption, or diversity within the company. Fighting climate change and being mindful in dealings with people, animals, and nature are the most important drivers.
Companies then define their major sustainability goals and the corresponding smaller sub-goals they want to achieve in each field of action. These are topics where, from the company's perspective, the greatest long-term impact can be achieved.
To get there, they define qualitative implementation steps and link these to quantifiable indicators. Success requires clearly defined goals that are both ambitious and achievable. Regular review of the KPIs provides insight into progress toward goal achievement and possible goal conflicts.
Sustainability strategy for companies: examples of sustainability goals
Qualitative sustainability goals should be formulated in a way that makes it clear whether they have been achieved at a given point in time. Examples:
- Complete climate neutrality by 2040
- Switch to plastic-free product packaging by 2035
- Renovation of the corporate headquarters in line with the sustainability standards of the German Sustainable Building Council (DGNB) by 2030
- Introduction of an internal CO2 fee for all departments by 2025
- Financial incentive for employees to use bicycles by next year
Quantitative sustainability goals are expressed in numbers that can be measured and reviewed regularly. Examples:
- Reduce water withdrawal by 40%
- Increase the waste recycling rate to 90%
- Provide 30 company bikes, 20 of them e-bikes
- Reduce accident-related days lost by 70%
- Hire 11 apprentices per year with 100% permanent retention
Strong coordination and constructive collaboration between the various departments and employees within the company guarantee optimal execution of the sustainability goals anchored in the sustainability strategy.
Sustainability strategy in innovation management
Innovation management plays a key role in any sustainability strategy. No other corporate function has a greater influence on shaping sustainable solutions or on sustainability awareness among everyone involved at the project level.
Sustainable innovations emerge at the beginning of the innovation process, at the so-called fuzzy front end of innovation. That is where innovation leaders work with future sustainability trends and use them as levers for implementing the company's sustainability strategy.
By linking its innovation goals to sustainability goals, innovation management makes the decisive contribution to aligning sustainability strategy and corporate strategy at the operational level. By using the sustainability strategy as an innovation driver for technological, economic, and social advances, it also secures the company's future viability.
Hit innovation goals more consistently
The TRENDONE whitepaper "Innovation is Measurable" lays out the 10 most important KPIs in trend and innovation management.
Innovation KPIs help you evaluate your success, serve as a strong communication tool, and demonstrate the importance of trends and innovation within your company.
