Sustainability—from a marketing to a survival strategy

No industrial company will be able to ignore the issue of sustainability in the next few years, with statutory regulations and guidelines and national and European level on the one hand, and pressure from investors and customers on the other. Last but not least, “green” scores points in the application process to find the best minds.

The message seems to have hit home. According to the current “Future Industry 2023” study by Staufen AG on the future of industry, 62% of respondents in the DACH region (Germany, Austria and Switzerland) have set the goal of working on a carbon-neutral basis within the next ten years. And for nine out of ten companies, sustainable business practices are part of the basis for future success. However, there is still a significant gap for the majority between aspiration and reality. 78% of the companies at least admit to untapped ecological potential.

Cost cuts to combat climate change

In times shaped by cost cuts, many are relying for starters on quick successes with electricity and heat consumption. Seven out of ten companies see energy savings as the biggest lever, while 56% are additionally aiming for a carbon-neutral energy supply with solar panels on the factory roof. That way, cost-cutting programs also reduce the carbon footprint at the same time, which is then happy to find its way into the sustainability report.

According to the study, however, that alone does not make a company carbon neutral. All it does is document the status quo. Anyone who wants to permanently report on their progress in reducing emissions needs a comprehensive strategy for decarbonizing the entire value chain. Otherwise, all that will remain in the coming years is purchasing expensive carbon offset certificates.

Black box footprint

Lean, digitized processes and centrally aggregated data form the basis for sustainability. Nevertheless, there is still room for improvement in the structured approach to the issue. Only half of the surveyed companies calculate their current carbon footprint, using figures from suppliers and customers alongside their own measurement results. With regard to transport route optimization, packaging methods, production processes, or the right recycling strategy, most companies are still in lone wolf mode.

Nor does sustainability of providers play a major role when awarding contracts. Only four out of ten companies opt primarily for climate-friendly suppliers. There are, however, differences between industries: For just under half of the companies in the automotive industry, the sustainability of suppliers is already an important award criterion.

The shortage of skilled workers is hindering change

The KOFA Study 2/2023 by the Competence Center for Securing Skilled Employees shows that obstacles also come from the other side. Six out of ten companies see challenges that are not to be underestimated in the general staff shortage, the lack of skilled workers, and the lack of knowledge. Only 28% of the surveyed companies respond to that by hiring new appropriately qualified experts. Qualification measures are the method of choice especially for SMEs.

Basically, when comes to sustainable business practices, many companies still primarily see a cost factor. And that, irrespective of the fact that trouble-free production and lean management—always committed to avoiding waste—provide a significant green lever. “Anyone who hesitates, however, misses the opportunity to position themselves with social and ecological issues as an innovator in their industry, and to increase their own market share,” according to the Staufen analysts.