Using sustainability as a competitive advantage: Here's how

Kik, the textile discounter par excellence, proclaims to act sustainably[1].

Background: In contrast to other textile giants from Adidas to Gucci, everything ends up on sale at Kik. All items are reduced until they are sold. This means that there are no surplus goods that are incinerated or end up as river waste. What kind of signal does this send to other companies in different sectors? It is high time that companies looked at their own sustainability efforts. Because sustainability is not just a trend. Rather, it opens up opportunities that will have a long-term positive impact on your company and the world. Let's take a look together at the status quo and why it's worth making corporate sustainability an integral part of your corporate strategy.

‍Whyuse sustainability as a competitive advantage?

The responsibility that rests on the shoulders of companies should not be underestimated. The expectations of society are crucial here, as they make a major contribution to sustainable development. The reasons for dealing with this are not only on the legal side. Regulatory obligations are one thing, growth, future prospects, demands from customers, employees and stakeholders are another. The integration of sustainable business practices, for example, fulfills the expectations of customers, which can only strengthen customer loyalty. Companies also fulfill their social responsibility by acting and doing business sustainably. And what company is not happy about falling costs and the efficient use of resources?

According to a recent study, 33% of companies in Germany are already implementing sustainability projects.[2] However, this does not mean that they will automatically succeed. Success depends on external conditions, the determination of companies and the commitment of employees . Crisis-related resource and energy shortages as well as disruptions in the supply chain put a strain on companies across national borders. The motivation to intensify sustainability goals within the company is correspondingly high. While the goal of improving energy efficiency is at the top of the list, external regulatory requirements such as the Corporate Sustainability Reporting Directive(CSRD) play a subordinate role:

‍

The ranking varies depending on the industry. But all of the companies surveyed have one thing in common: they are giving high priority to achieving net zero, i.e. achieving climate and greenhouse gas neutrality quickly. On average, they expect to achieve this by 2030 at the latest.

Ecological. Economical. Social.

Using sustainability as a competitive advantage and taking responsibility

"The impact of the economy and that of companies on human life and on the ecosystem of planet Earth is significant, and their responsibility is correspondingly high." [3]

Corporate sustainability is more important than ever, there is no alternative. Companies are not only an essential part of the economic cycle, closely linked to suppliers and the state, they are above all social systems and social actors. They are employers, training centers, producers, service providers and Cooperation partners. They are important players in all three dimensions of sustainability: social, ecological and economic.

In order to integrate the topic throughout the company, the management plays a particularly important role as the main driver: "If a change is to be implemented quickly and also last, it is not expedient to simply order it. The commitment should come from the management, be communicated credibly and lived authentically ("walk what you talk") so that there is a green "spill-over effect" (transfer effect) to the employees and can thus find its way into the corporate culture." [4]

Managers should lead by example, but an understanding of corporate sustainability among all employees is also crucial. Professional development, for example through sustainability training, is a decisive factor in ensuring that employees gain this understanding. Only in this way can sustainability be actively practiced within the company.