The comprehensive guide to setting up a sustainability strategy

Contents

Why should companies adopt a sustainability strategy?

Many companies are already taking various measures to become more sustainable. But after a few years, there is no Sustainability strategybut a large, often wild, collection of topics and measures. All these measures certainly contribute to making the company more environmentally friendly and socially valuable. However, this colourful collection of different sustainability measures harbours some risks for the company:

  • If sustainability issues are not anchored in corporate planning for the coming years, it can quickly happen that the commitment is abruptly reduced as soon as another issue becomes important.
  • For employees, many different topics offer less opportunity for identification and orientation than a clear direction for sustainability commitment.
  • In most cases, the improvement in sustainability performance comes to a standstill after a few years if clear individual targets and overarching goals for sustainability are not established. Sustainability be set.
  • Many diverse and smaller measures can only be explained in a much more complex way than a clear focus and justification. The credibility of your own endeavours is therefore made more difficult if this complexity has to be understood first.
  • An unclear focus also blurs the opportunity to communicate sustainability to customers. A clear focus, on the other hand, can contribute to sales and the company's success and thus anchor sustainability in an entrepreneurially motivated manner.

It is therefore worth bundling the existing sustainability commitment into a strategy.

The idea is the same, as in the development of a corporate strategy.
That is why we want to use this guide to help you understand how an initial sustainability strategy can be developed. However, the topics will certainly also help you to revise an existing strategy.

Methods and best practice for sustainability in your mailbox

Introduction: Aspects of sustainability in the company

To begin with, we would like to provide an overview of sustainability in companies. In our experience, it helps to have a clear understanding of CSR and sustainability within the company. These articles can help.

We also want to give a few more topics and examples to show the breadth of sustainability. This is then a good basis for approaching your own sustainability strategy.

Sustainability tips

The best CSR strategy is useless if a company cannot think of any measures to implement and improve it. With our more than 60 sustainability tips, we want to help you familiarise yourself with practical measures. They are easy to implement and therefore a good addition to the larger strategic measures.

We are always happy to receive additions and suggestions so that we can include even more easy-to-implement tips!

Sustainability strategy explained

We often find that it is not entirely clear what a sustainability strategy actually is. That's why we've written articles that explain exactly that. Comparing different sustainability strategies with each other makes it particularly tangible.

What exactly is a sustainability strategy? Is it different from other strategies? What strategies do other companies adopt and how moderate or progressive can they be? With these articles, we want to give you a feel for how such strategies can be structured and orientated.

  • Beyond CSR - Essay on responsibility in companies
    We discuss what responsibility actually means for companies today. How far do you have to go to be able to call yourself genuinely sustainable? And what concepts are there that go further than our current concept of CSR?
  • Sustainability strategy examples in companies
    We want to provide guidance and examples are the best way to do this. We have specifically analysed companies and their sustainability strategies and presented them in a structured manner.

Building a sustainability strategy

Last but not least, it is about being able to develop your own strategy. Even though a sustainability strategy may differ from other strategies, the main steps are similar. We describe in detail how the basis for the strategy can be developed by gathering the right information and stakeholders. We then look at methods for selecting the strategic direction and objectives and harmonising them with the corporate strategy. And then we look at the implementation steps and practical recommendations.

Sustainability transformation - when companies take it seriously

By sustainability transformation, we mean when companies initiate a long-term process to orientate themselves towards sustainability. The sustainability strategy is an important building block in terms of content. However, a transformation process goes beyond this and, in addition to other structural elements, also establishes a culture of sustainability and brings the topic to the individual level of employees.

  • Sustainability transformation in companies: a guide
    Our article on sustainability transformation sheds light on the three dimensions of transformation: structure, culture and the individual. It also describes the four phases that a transformation (repeatedly) goes through and how these can be tackled.
Lamp for FAQ sustainability strategy

FAQ: Frequently asked questions about sustainability strategies

What is a sustainability strategy for a company?

A sustainability strategy describes which sustainability goals a company wants to achieve and which framework conditions are set for their realisation. The sustainability strategy is therefore a plan for the specific development of the company for a long-term period, either in addition to, on a par with or integrated into the corporate strategy. Sustainability strategies are usually cross-cutting strategies and affect many or all areas or departments of the company in terms of their objectives and implementation. The time frame for the objectives can vary from 2 or 3 to 10 or more years.

Why do we need a sustainability strategy?

A sustainability strategy helps a company to improve its sustainability activities and performance in a structured manner. On the one hand, this means that it ideally helps to focus on the key sustainability issues. In other words, the topics where the sustainability impact is greatest in the long term. Secondly, it creates a structure for systematically and comprehensibly pursuing the set goals and facilitating their implementation in specialist areas and departments.

Which companies need a sustainability strategy?

A sustainability strategy is relevant for all companies that want or need to become more sustainable. Companies that are required to report on sustainability must report in accordance with the requirements of major reporting standards (ESRS, DNK, GRIetc.) explain whether they are pursuing a sustainability strategy. For companies that want to become more sustainable due to external pressure or intrinsic motivation, the sustainability strategy is a good tool for working authentically and effectively on sustainability.

How do you develop a sustainability strategy?

Sustainability strategies are developed in a similar way to other specific strategies for companies. The starting point is a detailed analysis. In contrast to many other strategies, however, this must take into account much more than just economic aspects. In particular, this includes analysing the impact of the company on the environment and society (inside-out perspective) and the impact of these issues on the company (outside-in perspective). This analysis helps to make informed decisions about where the greatest leverage lies. An important tool in the development of sustainability strategies is therefore the Stakeholder dialogue. This serves to find out from affected or involved groups what the impact of the company is on them and, if necessary, what options there are for improvement. The The development of a sustainability strategy is described in detail here described.

How long does it take to develop a sustainability strategy?

The length of the development depends on the size, sector and structure of the company as well as the status of its sustainability activities. For smaller companies without complex Value chaincompanies that are drawing up a sustainability strategy for the first time, the process can be completed in 3 months. For larger companies with more complex structures and objectives, the development can take 12 months or more.

What does a sustainability strategy involve?

At its core, a sustainability strategy comprises the major goals for the key sustainability issues, as well as the sub-goals that are necessary to achieve them. However, it can also include the company's sustainability vision and mission and other elements. In many cases, the sustainability strategy also provides a structure that helps with implementation and realisation in business operations. For example, it can be organised into fields of action and focus topics or it can refer to specific initiatives for implementation. In the blog post on Examples of sustainability strategies these elements are visualised.

What does a sustainability strategy have to do with a sustainability report?

A sustainability strategy does not require a sustainability report and vice versa. A sustainability report creates transparency about the recent past of the company's sustainability activities and shows the goals derived from them. In turn, the sustainability strategy states what the company is planning for the future. Furthermore, the report is primarily an outward-looking instrument and a strategy is used internally for planning. Both can therefore help each other in their implementation. For example, it gives a sustainability report a clear structure in terms of content if it can refer to the sustainability strategy. This makes the context of the topics to be reported on even clearer for the reader. For its part, the sustainability strategy benefits from the structured evaluation of sustainability activities in the sustainability report.

What is an integrated sustainability strategy?

An integrated sustainability and corporate strategy means that the sustainability strategy is not a separate document to the corporate strategy, but is part of it. The structure varies. In the weakest forms of integration, the corporate strategy contains chapters and objectives on sustainability that are harmonised with the other content and are located between them. Ideally, however, an integrated sustainability strategy means that all content and objectives of the corporate strategy have been checked against the sustainability requirements set, so that each corporate objective contributes to an increase in sustainability performance.

Are you planning the next steps towards sustainability?

Ask me for a free information meeting.
I am ready with advice and pleasure.

Toni Kiel
Sustainability strategy and reporting topics

Related Posts

26 Responses
  1. [...] This is where the management's task of establishing sustainability in all areas of the company and, above all, in the corporate strategy begins. If it forgets to involve parts of the company in a sustainability strategy or judges them to be unable to do so, it loses momentum. If the company management remains superficial in its implementation of sustainability in the sales strategy, it runs the risk of being interpreted as greenwashing by the smart customer. We describe here how a sustainability strategy can be developed. [...]

  2. [...] In order to avoid greenwashing, the company must therefore find out which sustainability issues are particularly important. The basis for this is a materiality analysis. A partial element of this can also be a carbon footprint. In a materiality analysis, opportunities and risks are analysed along the entire value chain. These are then evaluated and the result forms the basis for a sustainability strategy, for example. [...]

en_GBEnglish (UK)