Sustainability strategy examples in companies

In order to develop your own sustainability strategy, it helps to know examples of other companies. As sustainability strategies can be very different, we want to help you better understand different orientations.

For all those who want the complete overview, we have created a Comprehensive guidelines for the development of a sustainability strategy compiled.

And for companies that want to go beyond a sustainability strategy and enter into a permanent process, it is worth reading the article on Sustainability transformation and how companies can start it.

It is often difficult to rummage through the sustainability reports of companies. Similarly, websites often do not provide a comprehensive insight. After all, both should communicate sustainability performance. So we got to work and compiled the sustainability strategies of 4 companies in a structured way.

We have therefore selected 4 different sustainability strategies as examples in companies and explain the strategies systematically. Each sustainability strategy is analysed according to which fields of action are set, which goals are to be achieved, how it is anchored in the company and other aspects. In short, these examples of sustainability strategies in companies are intended to create an understanding and provide inspiration for your own sustainability strategy.

The 4 Sustainability strategy examples company:

1. GROHE ↓ - Sustainability plausibly anchored in the core topic of water and in products
2. Kärcher ↓ - Structured sustainability strategy and intensive stakeholder involvement
3. VAUDE ↓ - Sustainability strategy geared towards the common good, holistically anchored
4. Microsoft ↓ - Sustainability strategy with a focus on climate protection
5. Conclusion ↓ - What these examples of sustainability strategies show us

And off we go with examples of sustainability strategies in companies.

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Sustainability strategy of GROHE and LIXIL

GROHE is a manufacturer of sanitary products and fittings. GROHE has been part of the LIXIL Group since 2014. It employs around 7,600 people and had an annual turnover of 1.78 billion euros in 2021.

The sustainability strategy

The strategy plausibly picks up on the company's core theme: Water.

GROHE wants to implement sustainability comprehensively in the areas of employees, suppliers, customers, processes, products and social responsibility.

In addition to its own savings, GROHE can have a significant impact on customers' resource utilisation. For this reason, particular attention is paid to the development of water-saving technologies.

Key messages of the strategy

The strategy ties in with GROHE's mission to "shape the future of water".

Fields of action

GROHE has defined three areas of action ("strategic pillars") for sustainability. They call these the "strategic pillars of corporate responsibility":

1. Global sanitation & hygiene
2. Saving water & sustainable environmental protection
3. Diversity & Integration

These fields of action are to be implemented in the areas of suppliers, products, processes, customers, employees and social responsibility.

Goals

Among other things, the following targets were set, which are to be achieved by 2021 (compared to 2014). (New targets are to be published in 2022).

• Net-zero emissions to be achieved by 2050
• Water withdrawal: reduction by 20 %
• Waste: gradual increase in the global waste recycling rate to 99 %
• Energy consumption: Improvement in energy efficiency by 20 %
• Direct GHG emissions: Reduction of greenhouse gas emissions by 20 %
• Days lost due to accidents: reduction of 60 %

Sustainability strategy initiatives

A selection of initiatives designed to help implement the sustainability goals:

• Grohe goes zero: achieving climate neutrality
• Less plastic initiative: Switching to plastic-free packaging for products
• Universal design concept: development of products for all ages and also for crisis situations
• Sato: Toilet solution for developing countries

Anchoring sustainability

Sustainability is anchored through the following measures or allocation of responsibility:

1. The Chief Executive Officer is responsible for the sustainability strategy.
2. The Sustainability Council advises the Executive Board.
3. A sustainability report in accordance with the DNK standard also provides public information on progress and sustainability indicators.
4. Anchored in the "SustainAbility Policy" since 2000.

Special measures

A selection of special measures and developments as part of the sustainability strategy:

• Use of green electricity in all production facilities and offsetting of remaining emissions through selected projects.
• 3D metal printing to save material in products.
• Grohe Blue: water filters and sparklers as an alternative to mineral water bottles.
• Ecojoy: The tap halves water consumption without reducing utility.
• Silkmove ES tap: The tap dispenses cold water in the normal centre position, thereby reducing hot water consumption.
• Development of the first Cradle to Cradle certified products.

Quotes

Shaping the future of water sustainably - with this mission, we want to actively contribute to the change towards a sustainable world. For us, sustainability is an ongoing journey that we must courageously continue. This is the only way we can pave the way for a sustainable economy, meet global challenges and improve people's quality of life.

Thomas Fuhr, CEO

Our assessment

GROHE has recognised very well that its responsibility goes beyond saving resources in its own company. They fulfil their extended responsibility by also reducing their customers' consumption of resources through their products and technology. In doing so, they have effectively linked sustainability and their core business. However, the initiatives, fields of action and goals do not yet appear to be fully harmonised to the outside world, which can lead to "frictional losses". The dependence on the Chinese parent company LIXIL is difficult to assess, but may reduce the room for manoeuvre in terms of sustainability performance.

Reference

Sustainability at GROHE

We continue with the example of the sustainability strategy at Kärcher.

Kärcher's sustainability strategy

Kärcher is a manufacturer of cleaning equipment and cleaning systems. It is still a family business today, employs around 13,500 people and had a turnover of 2.5 billion euros in 2019.

The sustainability strategy

Kärcher has been pursuing the "Sustainability Excellence" sustainability programme since 2014. This programme continues to be based on a comprehensive stakeholder survey.

The programme comprises 14 overarching goals, which are divided into 6 fields of action. The aim is to ensure that responsibility is taken for all important topics: Environment, products, supply chain, company, society and employees.

Key messages of the strategy

"be the difference"

The CSR claim is derived from the brand claim "Kärcher. Makes a difference". This means that Kärcher wants to make the difference itself and become the benchmark for sustainability in the industry.

Fields of action

Kärcher has defined three fields of action for sustainability. You therefore take responsibility for:

1. Nature, culture and society.
2. Products and supply chain.
3. the employees.

Initiatives and goals

Kärcher has placed the sustainability goals under three initiatives:

Zero emissions

• The focus is on climate protection.
• From 2021, the plants worldwide are to be climate-neutral through efficiency, green electricity and offsetting.
• From 2021, business trips are to be climate-neutral nationally and internationally through reduction and compensation.

Reduce, Reuse, Recycle

• The focus is on the circular economy.
• Product packaging will be optimised for sustainability by 2025.
• By 2025, 50% of the plastic in end customer pressure washers will be made from recycled material.
• From 2020, the avoidance and reuse of ocean plastic will be supported.
• Pilot production without plastic waste will be realised by 2025.
• By 2025, sustainability will be a key component of new business models.

Social Hero

• The focus topic is social commitment and supplier auditing.
• Until 2025, social commitment is focussed on the topic of value preservation.
• Proactive supplier risk management for sustainability will be established by 2025.

Anchoring sustainability

Sustainability is anchored through the following measures or allocation of responsibility:

1. (The responsibility is not clearly visible)
2. A CSR steering committee has been in place since 2013.
3. A sustainability report provides public information on progress, but does not fulfil any standard.

Special measures

A selection of specific measures and developments as a result of the sustainability strategy:

• Cleaning on Demand: an IT platform for the cleaning fleet to gain efficiencies.
• Our own plants worldwide are certified in accordance with environmental management standards and some are also certified in accordance with energy management standards.
• New buildings are designed to be environmentally friendly.
• Products in the eco!efficiency range are particularly resource-efficient.
• In the form of cultural sponsorship, monuments are cleaned free of charge.
• The existing supplier audits were also expanded to include social and environmental aspects.
• Employees have a financial incentive to use the bike.

Quotes

"Sustainable, people-orientated corporate development is at the heart of everything we do. We want to create value - for our customers, our employees and the company. We are clearly committed to our social responsibility as a good corporate citizen. And we take this responsibility very seriously in all areas of the company."

Our assessment

The strategic goals are ambitious and also provide clear orientation. Furthermore, the intensive involvement of many stakeholders in the development of the existing and upcoming sustainability strategy is particularly valuable. In addition, the organisation of the goals into three meaningful initiatives provides a tangible direction.

On the other hand, at first glance, the interplay between the fields of action, focus topics and target structure is not entirely clear and free of overlaps. And the aforementioned orientation towards the SDGs is apparently not reflected in the structure of the sustainability strategy.

Reference

Sustainability at Kärcher

Vaude's sustainability strategy

Vaude is a German company that manufactures sports equipment. Today, the company is managed by the founder's daughter, employs around 500 people and generated a turnover of 100 million euros in 2017.

The sustainability strategy

Vaude has been intensively committed to sustainability since the late 1990s.

Vaude's aim is not so much to develop a sustainability strategy. Instead, the aim is to embed sustainability throughout the entire company. This is why sustainability is a core component of Vaude's corporate strategy. Vaude itself expresses this explicitly.

In order to structure its development, Vaude is guided by the Economy for the Common Good and the SDGs and is one of the few larger companies with a common good balance sheet. The corporate strategy comprises 10 fields of action, 7 of which are clearly related to sustainability.

Key messages of the strategy

"As Europe's most sustainable outdoor outfitter, we contribute to a world worth living in so that people of tomorrow can enjoy nature with a clear conscience. We set global standards in terms of sustainability."
The company's vision therefore expresses its commitment to sustainability at its core. As a result, Vaude positions itself as a pioneer in sustainability.

(None) Fields of action

Consequently, Vaude has not defined any clear areas of action for sustainability. As they want to live sustainability in every business activity, all sustainability topics can be found in the corporate strategy. This is divided into four areas:

1. Finances
2. Market and customers
3. Processes
4. Potentials

Goals

In line with the areas of the corporate strategy, 5 of the 6 corporate goals are related to sustainability. The targets are therefore summaries of clear and measurable indicators. The indicators to be achieved are ambitious. (Link)

• We are transparent and credible.
• We have unique, sustainably innovative products. (Our products are sustainably innovative).
• Our company is climate-neutral and we are making VAUDE fit for climate change.
• We realise high environmental standards in the supply chain.
• Our employees are satisfied and we are an attractive employer.

Sustainability strategy initiatives

A selection of initiatives to help implement the sustainability goals. Vaude is not only focussing on internal initiatives, but also heavily on working with NGOs, working on standards for the industry, etc:

• Vaude's own Green Shape label gives customers guidance on the most sustainable products.
• A co-operation with the WWF, in which 1% of the proceeds from Green Shape products go to environmental protection projects.
• Vaude has been intensively involved in the development of the state "Grüner Knopf" seal.

Anchoring sustainability

Sustainability is anchored through the following measures or allocation of responsibility:

1. Sustainability is an integral part of the company's vision, mission and strategy.
2. The managing director is publicly in favour of the issue.
3. The "VAUDE Ecosystem" is a separate sustainability management system that anchors sustainability in all business areas.
4. Vaude communicates transparently about its own development in a sustainability report in accordance with GRI.
5. Vaude has also signed the Greenpeace Detox Committment and is thus committed to removing all harmful substances from the supply chain.

Special measures

A selection of special measures and developments as part of the sustainability strategy:

• Vaude runs its own children's centre to enable employees to combine family and career.
• Since 2001, more and more products have been manufactured according to the strict bluesign standard.
• The company headquarters and the products manufactured there have been climate-neutral since 2012.
• 96% of production in the global supply chain takes place under the strict guidelines of Fair Wear.
• The conversion of the company headquarters was carried out in accordance with the sustainability standards of the DGNB.
• Vaude has set up an upcycling workshop in which fabric remnants from production are processed into new products by refugees.
• At the Vaude Academy, knowledge about sustainable management is passed on to other companies.

Quotes

"We want to operate sustainably and manufacture fair and environmentally friendly products for you. To achieve this, we have anchored sustainability holistically in our corporate strategy and integrated it into the "normal" day-to-day work of all employees."

Our assessment

Vaude is considered by many to be a model company when it comes to sustainability. Over the years, they have also managed to make sustainability one of the company's core values. Market positioning is also based on the value of sustainability. Accordingly, this can be an inspiration for many companies. However, many other companies will not be able to establish sustainability as a sales factor within a reasonable period of time. For this reason, many companies will still have to develop a sustainability strategy before they can anchor sustainability so deeply in their organisation. Nevertheless, the path that Vaude has taken can be an inspiration.

The focus on the Economy for the Common Good and the SDGs is exemplary, even if the link between the two is not entirely clear.

Finally, transparent and detailed communication has been successful. Vaude uses this transparency effectively to engage in dialogue with customers and stakeholders, for example.

Reference

Sustainability at VAUDE

Finally, let's take a look at the sustainability strategy example at Microsoft.

Microsoft's sustainability strategy

Microsoft is an international technology and software company that we probably all know. It is based in the USA, employs over 150,000 people worldwide and also generates sales in excess of 100 billion euros.

The sustainability strategy

Microsoft caused a stir at the beginning of 2020. It announced that it would offset all CO2 emissions generated over the course of the company's history by 2050. For an international company of this size, this means a lot of work, which is why it is worth taking a look at the strategy.

Microsoft has clearly focussed its sustainability strategy on climate protection. Since its beginnings in 2009, sustainability issues have revolved around renewable energies, efficient buildings, energy-efficient data centres and CO2 compensation. However, Microsoft has also consistently focussed on the aspects that are essential for a technology company of this size.

The current sustainability strategy comprises 4 focus topics, which are implemented within the company in 4 areas of action.

Key messages of the strategy

Microsoft has not given its sustainability strategy a clear message. However, there are various messages that express the core of the endeavours:

"Comitting to carbon negative by 2030"

"Building a planetary computer" or also

"Comitting to zero waste"

Fields of action

Microsoft has defined four areas of action for sustainability:

1. Climate emissions
2. Ecosystems
3. Water
4. Waste

These areas of action are to be implemented in all 4 business divisions:

1. Operational
2. Products, services and devices
3. Customers and partners
4. Politics

Goals

Microsoft has set itself ambitious targets for the four areas of action:

• It aims to implement "zero waste" by 2030 in the areas of operations, products and packaging.
• Microsoft aims to be climate-neutral by 2030 and to have offset all the emissions it has caused since it was founded by 2050.
• An investment of 1 US billion dollars is planned in a new Climate Innovation Fund to enable climate innovations.
• The aim is to involve customers on the path to climate neutrality and encourage them to become climate neutral themselves.
• The co-development and co-financing (1 million US dollars) of a "Planetary Computer" is being realised. This is a platform that can bring together and analyse data on ecosystems.

Sustainability strategy initiatives

A selection of initiatives designed to help implement the sustainability goals:

• AI for Earth is a very large and prominent initiative.
• In addition, there are dozens of other initiatives in Microsoft's many business areas.

Anchoring sustainability

Sustainability is anchored through the following measures or allocation of responsibility:

1. Responsibility for sustainability is assigned directly to the management boards of Microsoft's business units.
2. Several sustainability reports are published annually, each for the business units such as Devices, Software, etc.
3. They are signatories to the UN's "Business Ambition Pledge" and are thus publicly committing to doing their part to prevent the climate from warming by more than 1.5°.

Special measures

A selection of special measures and developments as part of the sustainability strategy:

• Circular centres are being created in which old devices and servers are dismantled and as many parts as possible are reused with the help of machine learning.
• "Single-use plastic" will be banned from all packaging by 2025.
• There are numerous tools and instructions for companies to take small and large steps to become more sustainable and, above all, more climate-friendly.
• An internal CO2 fee was introduced for the departments in order to incentivise consistent CO2 reduction in all areas.
• Good software reduces energy consumption many times over, especially in server centres.

Quotes

"Each of us must commit to doing more so that we can achieve more together."

Satya Nadella, CEO Microsoft

Our assessment

Due to Microsoft's size, the sustainability strategy is extremely extensive. Nevertheless, they have managed to formulate a common direction and break the strategy down to the business units. However, this also means that the clarity of the strategy is lost.

It is not possible to assess from the outside how well the controlling of progress and the findings of strategy pursuit can be centralised again. However, this may be a weak point in Microsoft's sustainability strategy.

The clear focus on climate protection speaks in favour of a good assessment of the materiality of the entire business operations. The other areas of action, waste and water, are also a useful addition when considering Microsoft's physical products. The ecosystems field of action is particularly exciting because it was probably chosen less because Microsoft causes particular damage to ecosystems. Rather, it was probably chosen because they see a great opportunity to contribute to the understanding and protection of ecosystems through computing power and algorithms.

Reference

Sustainability at Microsoft

What sustainability strategy examples from companies show us

If that was a good start, we have here a comprehensive guide to sustainability strategy in companies compiled.

If we look at the sustainability strategy examples of other companies, we can see the different possible paths. How a sustainability strategy should be structured depends on the size, sector, internal motivation and existing corporate strategy. The examples of sustainability strategy in these companies provide inspiration:

• how the focus can be set,
• how initiatives help to pursue the strategy,
• which frameworks can be used for orientation.

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