Implementing sustainability in the company made easy

Sustainability in a company is much more than just a buzzword – it is a strategic necessity if a company is to remain fit for the future. The key to success lies in going beyond individual, isolated measures. It is about anchoring sustainability deeply in the corporate culture and business strategy. It all starts with a clear plan and genuine, authentic commitment.

Why sustainability is a real strategic opportunity today

The days when sustainability was a niche topic for a few idealists are definitely over. Today, it is a key driver of economic stability and long-term competitiveness. Companies that become proactive in this area secure decisive advantages that go far beyond a nice, green image.

More than just regulatory pressure

Of course, legal requirements such as the Corporate Sustainability Reporting Directive (CSRD) are an important impetus. The obligation to report transparently on environmental and social impacts forces companies to take a closer look at their own actions. However, those who see sustainability merely as an annoying compulsory exercise to comply with regulations are missing out on the real potential.

The real value only comes when you see the issue as a strategic opportunity. At its core, it is about making your business model weatherproof. Just think of rising CO? prices or the risk of supply chain disruptions due to climate impacts – if you act with foresight here, you minimize very tangible financial risks.

Sustainability is not a cost factor, but an investment in the resilience and future viability of your company. It creates values that are reflected in the balance sheet, in brand strength and in employee loyalty.

The changing expectations of stakeholders

Today, customers, investors and potential employees are looking very closely at how companies do business. Their decisions are increasingly dependent on ethical and ecological criteria.

• Customer loyalty: Consumers prefer to buy from brands whose values they share. A credible sustainability strategy creates a deeper, emotional bond and can tip the scales in competition.
• Attracting talent: For the younger generations in particular, a meaningful job with an employer with a clear commitment to social and environmental responsibility is an absolute must. Companies with a strong sustainability profile are clearly ahead in the “war for talent”.
• Investor confidence: The financial markets are increasingly evaluating companies according to ESG criteria (environment, social, governance). A solid sustainability performance signals good risk management and far-sighted leadership. This boosts investor confidence immensely.

A strong lever for innovation

Dealing with sustainability forces you to cut out old habits, question familiar processes and break new ground. This necessity often becomes the spark for real innovation. The search for more resource-efficient production methods often leads to the development of more efficient technologies that not only protect the environment but also cut costs.

Imagine a medium-sized mechanical engineering company that opens up a completely new market by developing a more energy-efficient product. Or a hotel that consistently relies on regional suppliers and waste avoidance – this not only creates an authentic experience for guests, but also optimizes its own operating costs. The systematic implementation of sustainability therefore opens doors to new business models and ensures the relevance of your company in a world that is constantly changing.

Laying the foundations for your sustainability strategy

Anyone who wants to get started with sustainability in a company rarely starts from scratch. But often without a clear compass. Before you rush into individual, well-intentioned actions, take a deep breath. What you need is a solid, well thought-out foundation.

A truly successful strategy is not an off-the-shelf product. It is a tailor-made suit that fits your company, your goals and your real opportunities for influence perfectly. The first step is always to create clarity. Without this foundation, you run the risk of spending money and time on measures that look good but have little effect. It’s about moving from reacting to creating.

The good news? The German economy has long been ready for this change.

According to a recent survey, a good two thirds of companies in Germany want to invest in sustainable transformation. Among small and medium-sized enterprises (SMEs), the figure is as high as 57%. These figures show that Awareness of climate protection and social responsibility has become part of everyday corporate life. You can find more details on the survey in this article on German companies’ investment plans at bundesbaublatt.de.

The materiality analysis as your compass

The core of every good strategy is the materiality analysis. That sounds more complicated than it is. Basically, it is a logical exercise to find out which sustainability issues really matter to your company and your stakeholders (i.e. customers, employees, investors, suppliers).

Ask yourself two key questions:

• Looking from the inside out: What impact does our business have on the environment and society? Think about CO emissions, working conditions or the consumption of resources.
• Looking inwards from the outside: What sustainability issues affect our success and financial stability? These could be climate risks, new laws or changes in customer demand.

The topics that are highly relevant to both questions are your main fields of action. A software company will logically focus more on the energy consumption of its data centers and fair working conditions. A manufacturing company may focus more on ethics in the supply chain and water consumption.

From analysis to measurable goals

As soon as you know where your levers lie, you can set specific and, above all, measurable goals. Vague declarations of intent such as “We want to become more sustainable” won’t get you anywhere. You need clear key performance indicators (KPIs for short) that you can really use to measure your progress.

Practical tip: Formulate your goals using the SMART method. They should be Specific, Measurable, Attractive, Realisticand Time-bound. Instead of “produce less waste”, say: “We will reduce our residual waste volume by 15% by the end of 2026 compared to the base year 2024.” That is a clear goal.

Examples of meaningful KPIs:

• Environmental: Reduction of greenhouse gas emissions (Scope 1, 2, 3) in tons of CO? equivalents.
• Social: Increase in employee satisfaction by 10 % or a reduction in the fluctuation rate.
• Governance: Percentage of suppliers that have signed a code of conduct.

These goals are the backbone of your action plan. They set the direction and make success visible – for your teams and for the outside world.

Getting management and employees on board

The best strategy is worthless if it collects dust in a management drawer. Real sustainability for companies only comes to life when it is supported by everyone. This starts at the very top: Top management must not only release budgets, but also lead the way with conviction. That is the decisive lever.

However, it is just as important to involve employees from the outset.

• Form a diverse sustainability team with people from different departments.
• Communicate openly and honestly about goals, progress and also challenges.
• Create small incentives and recognize the commitment of individuals and teams.

When your people understand why certain changes are necessary and how they themselves can contribute, an incredibly strong motivation arises. Sustainability is then no longer seen as an annoying additional task, but as a natural part of the culture. And this is exactly how you lay the foundations for change that really lasts.

Putting sustainability into practice

A good strategy and clear goals are one thing. But how do you really breathe life into sustainability in the gray day-to-day running of a company? The real work starts with translating the big plans into concrete, daily action – in all areas of your company.

The will to do so has long been there in the German economy. In 2021, companies in Germany have already invested a whopping 55 billion euros in projects that also benefit climate protection. And this trend is set to increase. From 2024, new EU standards will force many companies to produce a much more comprehensive sustainability report. This will increase transparency and the pressure to take real action. You can find out more about this exciting development in the DIHK’s overview of sustainability reporting.

This shows: Implementing sustainability in the company is no longer an optional extra, but an obligation for any future-proof business model.

This image sums it up: everything starts with clearly defined goals. Without them, you’re just poking around in the fog.

It’s clear to see: without a clear goal, every measure is a shot in the dark and has no effect.

Operating business: where most of the money and CO? is hidden

In all honesty, the biggest and quickest treasures to uncover often lie dormant during operation. The first step is always a mercilessly honest analysis of your own consumption. Modern energy management systems are worth their weight in gold here to track down the nastiest power guzzlers in production or in the office.

Imagine a medium-sized print shop. The analysis shows that outdated machines are running all night and drawing useless power. The solution? A simple timer switch. This is a classic “low-hanging fruit” – minimal effort, immediate effect on the electricity bill.

Other levers that pay off quickly:

• Switch to green electricity: A simple change of electricity provider can often reduce your Scope 2 footprint to zero in one fell swoop.
• LED lighting: Yes, it is an investment. But one that often pays for itself after just a few years thanks to the lower electricity costs.
• Use water cleverly: Install water-saving fittings or collect rainwater for operational purposes. This not only conserves a valuable resource, but also saves money.
• Avoiding waste, not just separating it: A good separation system is the basis. But the crucial question is: where is the waste generated in the first place? Can packaging material be saved or reused?

Many entrepreneurs I talk to are surprised at how directly efficiency measures affect the balance sheet. Every kilowatt hour saved and every cubic meter of waste avoided is hard cash.

Supply chain: ethical and transparent right from the start

Your responsibility does not stop at the factory gate. Today, a clean supply chain is crucial for your credibility and protects you from unpleasant surprises such as reputational damage or sudden delivery failures. Transparency is the be-all and end-all here.

Do you really know where your raw materials come from and under what conditions they are mined or processed?

Start small: Evaluate your most important suppliers according to ecological and social criteria. A simple questionnaire can be a good first step. Request certificates and perhaps even carry out an audit for strategically important partners. The Supply Chain Sustainability Act (LkSG) provides the framework for larger companies, but even as a smaller company you can benefit from being proactive.

Look specifically for partners who share your values. For example, a fashion label could deliberately choose suppliers who use certified organic cotton and pay demonstrably fair wages. This not only creates an ethically clean supply chain, but also becomes a damn strong selling point.

Anchoring sustainability in the team: HR as a key player

Your employees are your most important ambassadors. A sustainable culture cannot be imposed from above, it has to be lived throughout the entire company. And this is exactly where human resources (HR) comes into play.

• Promote sustainable mobility: Offer job tickets, organize bicycle leasing or create charging facilities for e-cars.
• Share knowledge: Train your teams on sustainability topics that are really relevant to their area of work. Purchasing needs different knowledge than production.
• Reward commitment: create incentives for sustainable ideas. Why not reward the team that implements the best savings measures?
• Focus on people: flexible working models, ergonomic workplaces and health services are not a “nice-to-have”, but a central part of social sustainability.

Communicating success – but authentically, please!

Are you doing good? Great, then talk about it! But please be honest and transparent. Nothing is more embarrassing and damaging than being accused of greenwashing. Your communication must be based on real action and measurable data.

Instead of making vague claims about being “green”, communicate concrete successes. For example: “By switching our servers to green electricity, we saved 25 tons of CO? last year.” That is specific, verifiable and creates trust.

Use your sustainability report, your website or social media channels to document your journey – including the hurdles and setbacks. Customers and partners appreciate honesty much more than a polished façade. Implementing sustainability is a marathon, not a sprint. Show that you are on the road.

The following table gives you a quick overview of where you can start in various departments. It should serve as a source of inspiration for taking the first concrete steps.

Practical sustainability measures by division

This table shows concrete, practicable sustainability initiatives that can be implemented in various departments of a company.

Company division	Example measure	Possible tool or method	Expected benefit
Procurement	Supplier assessment according to ESG criteria	Questionnaires, EcoVadis rating	Risk minimization, ethical supply chain
Production/operation	Conversion to LED lighting	Energy audit, amortization calculation	Cost reduction, CO? reduction
Human Resources (HR)	Introduction of bicycle leasing	Providers such as JobRad, internal survey	Employee loyalty, health promotion
IT	Use of green hosting/cloud	Provider with green electricity certificate	Reduction of the digital CO? footprint
marketing	Transparent communication (e.g. CO? savings)	Sustainability report, blog articles	Credibility, brand image, customer trust
Distribution	Optimization of travel routes	Route planning software	Reduction of travel costs and emissions

Of course, these examples are just the beginning. Every company is different and will find its own suitable levers. The important thing is to start at all and to consistently track and measure the measures.

Measuring progress and reporting effectively

A strong sustainability strategy is a great start. But let’s be honest: the true value only becomes apparent when you make your progress visible – for yourself, your team and everyone else involved. Without measurement and honest reporting, even the best intentions fall flat. It’s about turning good intentions into tangible, verifiable results.

The principle is as simple as it is true: you can’t manage what you don’t measure. Your previously defined key performance indicators (KPIs) are your compass. They show you crystal clear whether you are on course or need to readjust. Understand this as a dynamic process, not as a to-do list that you tick off once.

Systematically record and evaluate data

Consistently recording your sustainability data is the foundation for everything that follows. It’s not rocket science, but it does require a certain amount of discipline. The first step is to collect the right data for your most important KPIs.

Here are a few practical examples of what this can look like:

• Energy consumption: Simply record the meter readings for electricity, gas or heating oil in a simple table every month. Many energy suppliers already provide this data conveniently via online portals.
• Waste volume: Document the weight or volume of the different types of waste – residual waste, paper, recyclables – for each collection.
• Employee satisfaction: Conduct regular anonymous surveys. This gives you a real feel for the mood in the team and allows you to record social progress in black and white.

A well-maintained Excel spreadsheet is often enough to get you started. As soon as things become more complex, specialized tools such as the SAP Sustainability Control Tower or other ESG software can help. Such systems pull together data from various sources and make analysis child’s play.

Preparation for CSRD and ESRS

The screws are being tightened noticeably when it comes to sustainability reporting. First and foremost, the Corporate Sustainability Reporting Directive (CSRD) and the associated European Sustainability Reporting Standards (ESRS) will change the rules of the game for many companies. Even if you are not immediately affected, it is smart to get to grips with them now.

From 2025, the CSRD will massively expand the group of companies in Germany subject to reporting requirements and demand standardized, transparent reporting. Together with rising CO? prices and stricter regulations, this will increase the pressure to invest in sustainable technologies in order to reduce emissions and costs. The CSRD is therefore also a driver of innovation. If you want to understand current developments better, you will find a good overview in the upcoming ESG trends on lbbw.de.

Don’t wait until the obligation catches up with you. Start building data collection structures that meet ESRS requirements sooner rather than later. This will give you a huge head start and save you a lot of stress later on.

A central element of the ESRS is the double materiality analysis. Here you look at the impact your company has on the environment and society (inside-out) and the resulting financial risks and opportunities for you (outside-in).

Create a meaningful sustainability report

A good sustainability report is so much more than a dry collection of figures. It is your most important tool for building trust and telling your story. It not only shows where you stand, but also where you are heading and how you intend to get there.

What belongs in a strong report:

1. Strategy and goals: Briefly and succinctly explain your sustainability strategy and the measurable goals you have set yourself.
2. Materiality analysis: Be transparent. Show which topics are really relevant for you and why.
3. Data and KPIs: Present your progress with the collected data. Graphs and diagrams bring dry figures to life and make them easy to understand.
4. Measures and projects: Describe what you have done in concrete terms. Tell the stories behind the figures – this makes the report really tangible.
5. Challenges and outlook: Be honest. Also talk about hurdles and areas where things are not yet running smoothly. This creates credibility like hardly anything else.

For many small and medium-sized companies, creating such a report seems like an insurmountable mountain. But don’t worry, there are fantastic guides and templates that make it super easy to get started. A great place to start is our Guide to the Sustainability Report for SMEswhich takes you step by step through the whole process.

Ultimately, reporting is about setting a cycle in motion: Measure, analyze, report, adjust – and do it all over again. This transforms your commitment to sustainability from a mere declaration of intent into a living part of your corporate culture that brings about real, measurable change.

Overcoming typical hurdles and growing in the long term

Let’s be honest: the path to a truly sustainable company is no Sunday stroll. It’s more like a challenging mountain tour with steep climbs and unexpected obstacles. Many companies start at full throttle, only to be caught up in reality. The good news? They are not alone. And there is a suitable strategy for each of these hurdles.

Those who want to implement sustainability in their company often face a wall of seemingly unsolvable problems. High initial investments, internal headwinds or the sheer complexity of data collection can paralyze the best intentions. But instead of burying your head in the sand, it is important to see these stumbling blocks as part of the journey and act smartly.

Cleverly overcoming financial hurdles

Worrying about money is probably the biggest brake. Of course, modernizing a production facility or converting the entire vehicle fleet costs money. But there is often a mistake in thinking here: it’s not just about the expenditure, but also about the return that such an investment will generate in the long term.

• Focus on the return on investment (ROI): Do the math. A new, energy-efficient machine will reduce your electricity bill – permanently. The investment often pays for itself more quickly than expected and generates profits year after year.
• Use state subsidies: The federal and state governments have countless pots for sustainability projects. From low-interest loans from KfW to direct grants for energy efficiency – it really pays to do your research here.
• Start small, make a big impact: it doesn’t always have to be a huge investment. Switching to green electricity, optimizing delivery routes or reducing packaging waste are often inexpensive and have an immediate, positive effect on your balance sheet and the environment.

Many companies are finding that sustainability is not a cost center, but a profit center. Those who invest wisely not only reduce their operating costs, but also secure decisive competitive advantages for the future.

Reducing internal resistance and promoting commitment

“We’ve always done it this way.” This sentence has nipped many a good idea in the bud. Resistance to new ideas is human, but it must not be allowed to put the brakes on your project. The key lies in transparent communication and genuine participation.

Explain not only the “what”, but above all the “why”. If your employees understand how sustainability makes the company more crisis-proof and their own jobs more secure, they will be more willing to join in. Actively involve critical voices in the process. Turn them into co-creators instead of opponents. An interdisciplinary sustainability team can work wonders here and act as ambassadors in all departments.

This approach is worth its weight in gold when it comes to not just having ESG goals in the company on paper, but bringing them to life and anchoring them in the entire team. In our follow-up article, we show you how to find the right goals for your company.

Getting to grips with the complexity of data

Collecting and analyzing sustainability data? It can feel like an impenetrable data jungle at first. Especially with regard to requirements such as the CSRD Directive, many feel overwhelmed. But here, too, the motto is: step by step.

Start with the data that you can easily obtain. This is often the consumption data from your electricity, water and gas bills. A simple Excel spreadsheet is all you need to get started and develop an initial feel for your own impact. As your requirements grow, specialized software solutions can help to automate the process.

Practical tip from experience: Define clear responsibilities right from the start. Who collects which data? In which format? Until when? A clean structure will save you a lot of headaches later on. This turns data chaos into a powerful tool that helps you make the right decisions and continuously improve your sustainability strategy.

Frequently asked questions about sustainability in the company

The same pressing questions keep cropping up on the road to greater sustainability. Many entrepreneurs are unsure: Where do we even start? Which issues are really important? And how do we justify the necessary investments?

Don’t worry, you’re not alone. Here you will find clear answers to the most frequently asked practical questions.

How do we get started when we only have limited resources?

Many small and medium-sized companies believe that sustainability is an expensive hobby for large corporations. This is a widespread misconception that blocks valuable potential.

The smartest approach is to start with the so-called “low-hanging fruit”. These are measures that cost hardly anything but have an immediately visible effect.

Just think about switching to a green electricity provider. This is often just a phone call or a few clicks away, but dramatically improves your carbon footprint. Or consistently reducing paper consumption in the office – a simple change that directly saves costs.

Here are a few more ideas that can be implemented quickly:

• Promote sustainable mobility, for example through job tickets or bicycle leasing.
• Introduce clear waste separation and actively avoid waste.
• Optimize heating and light settings. This is often just a matter of correct programming.

A clean materiality analysis helps you to identify precisely the areas of action that have the greatest leverage for your business model. This allows you to target your scarce resources where they will have the greatest impact instead of distributing the budget with a watering can.

How do we convince the management to invest?

The key question in management is usually: “And what are the benefits?” To be convincing here, you need a sound business case. It’s about positioning sustainability not as a cost factor, but as a smart investment in the future of the company.

Argue with hard-hitting economic benefits. Calculate how energy efficiency measures reduce operating costs in the long term. Make it clear how a transparent, ethical supply chain minimizes the risk of production downtime or reputational damage.

A strong sustainability profile makes you a more attractive employer and gives you a clear advantage in the battle for the best talent. You also position the company as future-proof by proactively addressing upcoming regulatory requirements such as the CSRD.

Use benchmarks and success stories from competitors. If the competition is already cutting costs and winning new customers, your management will take notice. That’s a promise.

What is the difference between CSR, ESG and sustainability?

These three terms are buzzing around everywhere and are often lumped together, although they describe different things. Understanding them is crucial for clear communication.

• Sustainability: this is the big umbrella term. It is the basic principle of doing business in such a way that the needs of the present generation are met without jeopardizing the opportunities of future generations. It is always based on three pillars: ecology, social issues and economy.

• CSR (Corporate Social Responsibility): This is about the social responsibility of companies. CSR usually refers to voluntary contributions that go beyond legal obligations – think of donations, local sponsoring or employee volunteering.

• ESG (Environment, Social, Governance): ESG is the concrete, data-based framework that makes sustainability measurable. Investors and analysts use ESG criteria to assess a company’s performance in the environmental, social and governance areas. ESG translates the major goal of “sustainability” into hard, investment-relevant key figures.

So you could say: sustainability is the goal, CSR is part of the journey and ESG is the measurement tool that evaluates progress.

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