Implementing sustainability management in the company - concepts and tools

In our day-to-day consultancy work, we are observing that an increasing number of companies - especially SMEs - are introducing measures to improve their own sustainability performance. Not least the increasingly stringent Legislation in the EU and in Germany make structured sustainability management in the company indispensable.

In previous blog articles, we have already provided comprehensive information on setting up a Sustainability strategy and numerous Practical tips for more sustainability in the company. In addition, in this article we want to discuss the functions and areas of responsibility of sustainability management as a structuring element and present various concepts and instruments. Furthermore, we want to provide support for the organisational anchoring of sustainability as a cross-cutting issue in the company in order to systematically and continuously increase sustainability performance.

Why do companies need sustainability management at all?

Ideally, the planning and implementation of sustainability measures should be embedded in the context of a company's long-term sustainability strategy and serve to achieve predefined objectives. In the course of our projects, however, we have often found that many companies do not follow a clear structure when it comes to sustainability. This is not necessarily detrimental to the short-term success of individual measures. However, practice shows that without clear definitions of responsibilities and processes, the medium and long-term success of sustainability measures and therefore also the overarching sustainability strategy can be jeopardised.

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What is sustainability management in a company?

As with the term "sustainability" in general, there is no single definition of sustainability management in the corporate context. In most cases, the entirety of all activities in the company that are related to sustainability are summarised as sustainability management. Based on this understanding of the term, the creation, management and implementation of strategies and measures across all sustainability topics and areas of the company fall within the remit of sustainability management.

In addition, the term "sustainability management" can also refer to a specific group of people in the company. In general, this includes all those who are responsible for coordinating sustainability activities, e.g. the Chief Sustainability Officer, CSR/sustainability managers, CSR/sustainability officers or the sustainability team.

What are the typical tasks of sustainability management in a company?

Depending on how sustainability is understood and interpreted by the respective companythe areas of responsibility of sustainability management can also vary in practice. Typically, sustainability management is concerned with improving environmental protection and social issues within the company and in the value chain, ensuring responsible corporate governance, sustainability reporting and social commitment beyond the core business.

Based on the frequently used three sustainability dimensions of environment, social and governance (also known as "ESG"), the following typical areas of responsibility can arise for sustainability management:

The specific role of sustainability management in the respective areas of responsibility can vary depending on the company and organisational structure. We will therefore take a closer look at the possible structure and division of tasks within sustainability management below.

What can companies use as a guide when setting up sustainability management?

There are various concepts and systems for the concrete implementation and structuring of corporate sustainability management. We have already described some of these concepts and systems, including their respective advantages and disadvantages, in our Articles on sustainability seals and certificates under the microscope.

The best-known and most widespread concepts and systems for sustainability management in companies include

• Theoretical approaches
  (e.g. corporate sustainability, corporate social responsibility, corporate citizenship, sustainable supply chain management, green procurement)

• Initiatives and principles
  (e.g. UN SDGs, UN Global Compact, ILO core labour standards)

• Standards for reporting
  (e.g. Global Reporting Initiative, German Sustainability Code, CDP)

• Standards for data collection and analysis
  (e.g. ISO 14040/44, ISO 14064, ISO 14067, GHG Protocol, Science Based Targets Initiative)

• Standards for management systems
  (e.g. EMAS, ISO 9001, ISO 14001, ISO 26000, ISO 45001, ISO 50001)

• Standards for the assessment of sustainability performance
  (e.g. EcoVadis, Common Good Balance Sheet/GWÖ, BCorp, PAS 2060, Cradle to Cradle)

Which sustainability topics are covered by the concepts and systems for sustainability management?

Firstly, a distinction can be made between cross-thematic and topic-specific concepts and systems for sustainability management. While topic-specific concepts and systems only focus on individual sustainability topics, cross-thematic approaches are designed holistically and deal with several or even all dimensions of sustainability.

The ISO 26000 standard, for example, is a Guidelines with recommendations for action for the organisation-wide integration of social responsibility of companies across all three pillars of sustainability (environmental, social and corporate governance). ISO 14001 or the European Eco-Management and Audit Scheme (EMAS), on the other hand, define clear requirements for setting up an environmental management system and are therefore limited to the ecological perspective of sustainability.

Which areas of the company are covered by the sustainability management concepts and systems?

A further distinction can be made between concepts and systems for sustainability management with regard to the areas of the company concerned. Some approaches are limited to recommendations for the management of individual functional areas (e.g. purchasing, production, research and development). Holistic concepts and systems, on the other hand, address sustainability aspects throughout the entire company.

While the concept of the Sustainable Supply Chain Management (German = sustainable supply chain management) focuses on the sustainable management of purchasing and procurement processes and thus addresses the entire range of sustainability issues along the supply chain, the energy management standard ISO 50001, for example, requires the consideration of energy efficiency and supporting structures and processes in all areas of the company.

For better orientation, we have summarised important and widespread concepts and systems for sustainability management in terms of their scope and thematic focus in an overview:

Which structures and processes should be part of sustainability management in the company?

In particular, the topic-specific management systems mentioned above (e.g. EMAS and ISO 14001 for environmental protection, ISO 45001 for occupational health and safety or ISO 50001 for energy consumption and efficiency) can be a very good blueprint for setting up an overarching and structured sustainability management system to permanently improve sustainability performance.

It is true that none of the management system standards mentioned takes a holistic view of sustainability. Nevertheless, these standards provide valuable suggestions, minimum requirements and tools for the creation of suitable structures and processes in all areas of the company. The focus can be expanded, for example, by including ISO 26000. Reporting standards, such as GRI or DNK, can also be used as a basis. Idea generator for potentially important components of sustainability management be.

What are the most important components and instruments of sustainability management?

If we follow the structure of a typical management system, comprehensive and structured sustainability management should include at least the following components and tools:

What is a sustainability management system?

If the structure and implementation of sustainability management is based on the development of topic-specific management systems and is simultaneously committed to the continuous improvement of sustainability performance (including "PDCA cycle" or "CIP" ), this is referred to as a sustainability management system. Internationally recognised and certifiable standards for holistic sustainability management systems do not yet exist. However, certain areas of the company or aspects of sustainability can be independently audited and certified, as in our Articles on sustainability seals is described.

How should sustainability management be organisationally anchored in the company?

Having looked at the importance, the areas of responsibility and the possible components of sustainability management in a company, we will conclude with a look at the organisational anchoring within the company.

Who should be responsible for sustainability management?

When it comes to the organisational anchoring of sustainability management, there is no single best solution. However, practice shows time and again that there is usually a need for clear and communicated responsibility for sustainability at the top management level, particularly because sustainability generally affects all areas of the company due to the large number of related issues. Sustainability management therefore takes on a cross-divisional function in most companies. From our own experience, we can also report that a clear commitment to sustainability by the company management can lead to a higher motivation and willingness to implement among employees in the various areas.

Smaller companies in particular rarely make a clear distinction between strategic and operational responsibility for sustainability, often due to a lack of human resources. In larger companies, on the other hand, it is now common practice to delegate the implementation of sustainability management to a specific person or team below the top management level. These sustainability managers or officers should at least have the backing of the company management or ideally even be authorised to issue directives. If this is not the case, sustainability management often lacks the necessary authority and/or legitimacy for the practical implementation of sustainability measures in the various areas of the company.

How can the individual divisions be involved in sustainability management?

In addition to a centralised and coordinating responsibility for sustainability management, it is also advisable to define contact persons and responsibilities in the respective divisions. A division of responsibilities is particularly useful for larger and more complex corporate structures, as a central sustainability office does not necessarily have the necessary expertise in all of the topics relevant to the company. In turn, this expertise is usually already available in the individual functional areas of the company (e.g. research and development, procurement, production, marketing, controlling). The appointment of divisional sustainability managers therefore ensures that the central sustainability management team is supported by division-specific experts.

What are the responsibilities and tasks of the individual company processes in sustainability management?

Internal company responsibilities and tasks in the context of sustainability management can be organised on the basis of a Process landscape are presented. A basic distinction is made between the following process types:

Management processes

• are not part of the direct value added
• define strategic objectives and set framework conditions that affect all other processes
• ensure that the previously defined quality of results is achieved
• e.g. strategic management, centralised sustainability management

Core processes

• are the value-adding processes of a company, depending on the business purpose
• map the day-to-day business
• e.g. procurement, production, sales

Support processes

• are processes that provide support services for core processes but do not directly add value themselves
• are of great importance for the execution of service provision in the core processes
• e.g. Controlling, Marketing & Communication, IT

If this process logic is transferred to company-wide sustainability management, the following division of responsibilities and tasks can be summarised:

Summary and conclusion

The tasks involved in sustainability management can be varied and complex. It is therefore all the more important to use suitable concepts and tools as a guide and to establish clear structures and processes in the company for the topic of sustainability.

First of all, the development of a sustainability strategy, the possible structure of which we in another blog article be a guiding element. A wide variety of systems and concepts, such as theoretical approaches, initiatives, principles or sustainability standards, can serve as orientation for the concrete development of comprehensive sustainability management and for the implementation of the strategy. sometimes also certified.

Internationally established standards for management systems are particularly well suited as a starting point for the structured implementation of sustainability management, as they specify possible components, instruments and minimum requirements for sustainability management. Ultimately, however, the structure of sustainability management should always be based on the size and complexity of the organisation, the Number and scope of sustainability topics material to the company and the available human and financial resources.

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