Vaude's path to sustainability - Interview with Antje von Dewitz

Sustainability at Vaude: a question of culture, strategy and determination

An interview with Antje von Dewitz, Managing Director of Vaude, about how she and her team made the transition to sustainability, the hurdles she overcame and what she advises other companies to do in their sustainability development.

Background

Vaude is a German outdoor outfitter and a pioneering company when it comes to sustainability. Founded in 1974Antje von Dewitz took over the company from her father in 2009 and has consistently focussed on sustainability ever since. The economic success of this strategy proves her right.

How exactly did Vaude achieve what many other companies find so difficult in terms of sustainability? What hurdles have arisen and how have they been dealt with? What role do management systems and corporate culture play?

In the interview Antje von Dewitz and provides inspiration for other companies that want to become more sustainable themselves.

This article is part of our collection of articles in the Comprehensive guidelines for the development of sustainability strategies.

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The interview on sustainability at Vaude

Good morning Mrs von Dewitz. Vaude has come a long way in terms of sustainability development. Please try to describe in a few sentences what has characterised Vaude's path to sustainability so far.

Our path is characterised by the fact that we are completely transforming ourselves into a sustainable company. We have been implementing ecological and social projects since 1990. When I joined as Managing Director, we decided together to consistently implement sustainability in all areas in order to really make a difference and be successful. Firstly in relation to the brand, and secondly to create real added value for people and nature. This requires a complete transformation. This means that for everything we do, we weigh up the extent to which it makes ecological, fair and entrepreneurial sense.

In concrete terms, this means, among other things, that we have our own Green Shape Label for environmentally friendly products made from sustainable materials and fair production. It is based on the highest ecological standards in the textile sector. The strict assessment criteria are continuously reviewed and cover the entire life cycle of the product - from design and production through to care, repair and recycling. The Green Shape label now applies to over 90 per cent of our clothing collection.

We are an outdoor outfitter and also produce in Asia. How do we still manage to guarantee high social standards? We personally select all production sites in advance according to our ecological and social requirements and monitor them continuously. On the one hand, this is done by our own team of employees who are on site, speak the local language and regularly visit the production facilities. Secondly, our production facilities are inspected by the independent Organisation Fear Wear whose employees visit the production facilities unannounced and check all documents, books and work processes.

To become sustainable through and through, it was necessary to align all processes and our entire organisation accordingly and to build up personnel and expertise for this. It is a long, complex process that is never really finished.

But we have already achieved a great deal. Over 90 per cent of our clothing bears the Green Shape label. The majority of our products have also been awarded the State "Green Button" seal for ecologically and fairly produced textiles. We are 100 per cent climate-neutral here at the Tettnang site with all products manufactured here. Our employees are covering more and more commuting kilometres sustainably, by bike, in car pools or by public transport. We all cycle around 50,000 kilometres to work every year.

We support our employees in achieving a good work-life balance with a wide range of programmes. We have an organic canteen and an extensive sports and health programme. This is also sustainability at Vaude.

It is important to us to create a high quality of life for our employees. We want to offer a working environment in which people feel comfortable and can optimally develop their performance and creative abilities. On this basis, we can successfully develop our pioneering spirit and high innovative strength in a dynamic market.

It is important to us that our employees can experience all of these values for themselves. This is also reflected in our site here, which has been remodelled according to ecological criteria. There are a variety of modern, naturally designed working environments here, where you can concentrate on your work, exchange ideas and also retreat.

Our next major goal is to make our global production climate-neutral. To achieve this, we have set ourselves ambitious, science-based targets. With the so-called Science Based Targets (SBT) we want to make our contribution to limiting global warming to a maximum of 1.5 degrees in line with the goals of the Paris Climate Agreement.

These are ambitious goals. When you took over Vaude, you decided either to focus completely on sustainability or to leave it alone. Do you see this as a necessary prerequisite for the path you have taken? And do you think other companies should also follow this "all or nothing principle"?

There is a middle way. When I took over Vaude, we came from a time when we had already launched major ecological projects. In 1994, for example, we already had ae complete recyclable line. A rucksack, for example, consists of more than 50 individual parts made from completely different materials. Producing such a complex product from one material, i.e. pure polyester, so that it can be completely recycled is a huge innovative effort. We have set up an industry network called Ecolog that took back the goods and recycled them without leaving any residue.

So we have managed projects that required an incredible amount of resources, with the result that in the case of Ecolog, very few jackets and rucksacks of this quality were ever returned. We had several similar examples that made us realise: If we want to go down this route, then we have to make sure that the customer recognises this added value. That's why the only option for me was to implement the topic holistically. And for several reasons: Firstly, so that we can position ourselves as a sustainable, credible brand and our customers can realise what we are committed to. Secondly, our employees should also experience that our commitment is genuine and authentic. Otherwise, the thought may arise internally that we are not serious: why are we so committed here and not there? Is this really sustainability here at Vaude?"

That's why it was clear to us that we had to do sustainability completely or not at all, so that we could focus all our energy in one direction and bring about real change. So that we don't end up dying in beauty. And so that we have the chance to show that it is possible to take responsibility and be successful at the same time.

I don't know if it's transferable to every industry. For me, sustainability is nothing more than corporate responsibility. What we have learnt is that it is complex and requires really in-depth knowledge for every step you take. You always come to the point where you realise that your existing knowledge is not enough and you have to build up new methodological, content-related or entrepreneurial expertise. It also takes a lot of energy, because sustainability involves a lot of additional effort and costs. You have to put your heart and soul into it in order to successfully follow this path.

You say it was important for customers to realise what they are already doing. On the one hand, this means a holistic strategy but also communication for sustainability at Vaude. It's controversial, especially in the area of sustainability, how early I can communicate sustainability successes without it being labelled as greenwashing. How do you view the topic?

Transparent communication is an important basis, right from the start. Because it's not just about successes, but also about showing how complex the challenges are, where there may still be construction sites or difficulties. I think that's extremely important.

We live in a world in which there is still a lot of black-and-white thinking, i.e. that everything is either good or bad. Every step towards sustainability shows us that this way of thinking doesn't work. I can't switch from black to white, I have to take very small steps. And I can't wait until everything is perfect and then communicate it. It is important to take customers along on this journey right from the start and to inform them transparently.

Right from the start, we communicated transparently where we wanted to go and where there were difficulties along the way. This has certainly helped us to be perceived as a credible brand.

I experience that there are great concerns about communicating so openly. I would say have the courage to do so! Everyone is aware that nothing is perfect and if you try to communicate only when everything is perfect, you will wait forever, because you will never reach that state.

I assume, however, that such open and transparent communication only works with the corresponding integrity.

Yes, when I took over as CEO, we decided together with my colleagues on the management board to become a thoroughly sustainable company. We set ourselves the goal of becoming Europe's most sustainable outdoor outfitter. We consciously communicated this internally and externally in order to put ourselves under pressure and to be measured against this goal. The decisive factor for us was that we set the highest standards and transparency from the outset and allow ourselves to be measured and assessed objectively. For example, we have had ourselves externally audited and certified right from the start. EMAS, bluesign standardFair Wear, GWÖ or the international GRI standard for our sustainability report. To this day, Vaude is audited according to the strictest sustainability standards to ensure the highest possible comparability and transparency.

I hear two different points that are probably interlinked. On the one hand, that the employees should experience it and that it is noticeable externally. But also that you get audited and have systems in place for this. Perhaps the question is a little more striking: when it comes to sustainability, which is more important? Management system or corporate culture?

I think both are extremely important - you can't have one without the other. Management systems are important because it requires professional business expertise to pursue sustainability strategically and holistically. This must be systematically developed and mapped in order to recognise where my priorities lie, where I have the greatest leverage, where are my weak points? These can be worked out comprehensively and professionally using management systems such as EMAS or the common good balance sheet. In this way, the company can be examined holistically from different perspectives and it becomes clear where progress has already been made and where there is still a need for action.

On this basis, objectives can be systematically derived, processes and responsibilities established and tasks can be processed in all areas.

The corporate culture is just as important, because sustainability often requires pioneering efforts.

When we started to consistently pursue sustainability, many standards did not even exist yet. Another challenge was that we were transforming the entire supply chain in Asia - and that as a medium-sized company. We encountered challenges for which there were easily 50 good arguments as to why we couldn't continue at this point. For example, when my most important producers didn't want to be audited or we found an alternative material that is free of harmful substances but costs 80 per cent more, etc., we had to find a solution.

There are obstacles to overcome at every step, and this requires a strong corporate culture in which employees actively shape and take responsibility.

Solutions for complex issues need to be developed on an ongoing basis. This does not work through individuals or managers. It requires experts and people who can work together with passion to find the best solution. The best solutions and innovations are created in a culture that unleashes creative potential.

You said in an interview that students who come to you are often not practised in moral and ethical discussions. This is also a strong cultural issue. How do you manage to develop a culture like this and get new people into the culture?

We attach great importance to a culture of trust. The basis for this is a positive view of people. We assume that people fundamentally want to perform. For managers, this means first and foremost creating a framework in which employees can develop, make decisions and work well together. We focus on trust and self-efficacy, i.e. we encourage our employees to take responsibility and play an active role in shaping the company. We offer our employees a great deal of flexibility, trust-based working hours and promote mobile working, e.g. in the home office.

In order to realise such a culture throughout the company, training is also required. The first step was to train all managers. Meeting employees at eye level, trusting each other and being able to assess yourself honestly is not something that everyone takes for granted. This is also sustainability for us at Vaude.

We then realised that the managers have already come a long way in providing a framework, but we still have employees who look upwards and expect decisions to be made. So we decided to take the next step and train the entire company and every employee in self-efficacy.

You get to know your own needs and realise how you are influenced by your needs and emotions in certain situations. It's about questions such as: "What is emotionally driven now, what is objectively driven?". You learn a lot of relationship skills. Because if you know yourself and others well, discussions can be conducted in a much more factual manner and the best solutions can be worked out together. This helps us enormously when faced with complex challenges and conflicting goals, which are a permanent feature of sustainability.

At a conference last week, you said that "local participation characterises Vaude and Vaude's soul in a very special way". What do you mean by that? And what value does local involvement have for companies?

The value is really difficult to measure. Our company headquarters are in a very rural location, in a small village. We have created a campus here with our own organic canteen, a climbing wall and a green inner courtyard. We also have a children's centre here in cooperation with the town of Tettnang, where the children of our employees as well as children from families in the surrounding area are looked after. We also run the local outdoor family pool in co-operation with the town and the sponsoring association. We decided to do this a few years ago when it was threatened with closure.

This is a major balancing act, as we are an international company that is also very firmly anchored locally.

For us, Vaude is a kind of home. You come to Vaude and you feel Vaude. Many people who visit us say it's a place to feel at home. You can perceive Vaude as a soul.

When journalists come to us, they often notice that the staff are friendly and in a good mood. It's a good place with a positive energy. It's hard to measure what that means. I believe it creates identity and cohesion. And especially in times that are rather unstable.

You mentioned the children's home. At Vaude, the employees have around five times as many children as the German average. That is remarkable and raises questions. On the one hand, why is that the case? On the other hand, how is it still possible to be an economically successful company when many other companies are complaining about complicated substitution arrangements and absences?

We opened our children's centre back in 2001. At that time, as today, there was a kindergarten in the village, but it only accepted children aged three to six. It was also only open from 9 a.m. to 12 p.m. and closed for three months of the year. Under such conditions, it was difficult to work with children at all.

In our company, this meant that employees who had children were absent for three years, then perhaps had another child and only returned to the company completely after six or seven years. In a dynamic industry like ours, that is a very long time, i.e. you are completely torn out of the work context.

At the time, we had virtually no female managers, which is why it was also economically relevant to say: we provide childcare ourselves and create the infrastructure. At the same time, we had ourselves audited by "Career and Family" of the Hertie Foundation and together with our employees, we have worked very hard to identify the issues that still stand in the way of balancing work and family life. We have introduced flexible working hours and made part-time and working from home possible. After three years, we realised that the number of children in the company and the need for places in our childcare centre had risen sharply. We have 20 to 25 babies every year out of 500 employees.

Why is the ratio of children at Vaude so high? I read an article a fortnight ago that it has been scientifically proven that more children are born when there are already many children in the neighbourhood.

And how does that work for us? It's a challenge, of course. We have around 50 people on parental leave every year. At our company, the men also take on a great deal of responsibility. We are also in the outdoor industry, which means that our employees are very active, organise their working hours flexibly and may also want to take time off from time to time. As a result, there are many needs to reconcile.

We benefit from this in that our staff turnover is very low. On the other hand, we have extremely fluid teams that are constantly changing. We have become very skilled at defining and reorganising work and task packages. It's constantly in flux.

On the one hand, this is very stressful because there are constant changes for which you have to work out solutions. On the other hand, it makes us very agile. We never run the risk of getting stuck in deadlocked processes. This makes us very solution-orientated and flexible. This also helps us at Vaude to cope well with major sustainability challenges. And it really is a high quality of life for our employees when they can contribute their needs and live their lives the way they want to. Both sides, the employees and the company, have to approach each other and find solutions together, but this enables us to achieve a very high quality of life.

I have two final questions. If you were to go down this path again today. What would you do differently?

It's really difficult to say. It was very rocky at times. For example, there were major conflicts of interest regarding sustainability, as Vaude's focus on sustainability requires significantly more effort and costs, which we cannot pass on to the customer in full. Nevertheless, I am convinced that it is the right path and that it is worthwhile despite all the effort. We had a good mix right from the start. On the one hand, a systematic, professional approach with management systems, audits and long-term goals. On the other hand, there are also tangible, small changes on site that allow our employees to experience sustainability.

What would I do differently? I would use more external support on the way to shaping the culture. We also went through loops that were sometimes painful. But you also have to find the right partner that suits you.

But what was painful and exhausting has also strengthened us and led us to where we are today.

I believe that we would have brought in more external advice right from the start if we had found the right people.

What is your most valuable tip for companies that want to become more sustainable or have already taken a few steps along the way?

I believe it is crucial to recognise at an early stage that sustainability is a professional business competence that a company needs to develop. It requires a systematic approach to establish this competence internally and to map it both organisationally and in the form of processes.

It makes sense to place the focus on sustainability at management level in order to anchor it throughout the company and implement it in all areas. A good internal structure should also be established for this. This means looking at which management system suits my approach. And at the same time ensuring that the sustainability goals are incorporated into the tasks of all employees wherever possible. At the same time, it is also important to implement small, tangible changes on site that can be felt by every employee. For example, we very quickly switched to Fairtrade coffee and introduced a consistent waste separation system throughout the company. Such changes help to underpin our credibility internally.

In our experience, it comes down to a good mix between the big strategic umbrella with a professional organisation within the company - and the consistent implementation of things on the ground with the involvement of employees.

Would you like to say a few last words?

If you think about what sustainability is, today I would say it is nothing other than corporate responsibility. As a company, it is my duty to be aware of the moral, economic and ecological impact my actions have worldwide. I should ask myself the question: Where do I actually have corporate responsibility that I am not currently aware of because I am not aware of it? Or because I think that my supplier or the producer takes care of that - I have nothing to do with it. I should realise that, firstly, that's not true - that's my conviction. And secondly, perhaps even more importantly for many companies, that the customer has long since recognised this and expects companies to take responsibility along their global supply chain.

I often find that entrepreneurs are still convinced that their corporate responsibility lies in making good products and securing jobs. Many companies do not yet realise that customers and citizens expect more from companies and hold them jointly responsible for global problems such as climate change, plastic pollution or the excessive consumption of resources.

It's a good idea to quickly realise that this is a professional business skill that I need to develop now before it's too late.

Thank you very much for the very pleasant and valuable conversation. I'm very keen to visit Tettnang soon.

Thank you also from me and you are cordially invited.

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