Sustainability: Many companies are still driving with the handbrake on

Swiss companies have recognized the relevance of sustainability and estimate that sustainability in the areas of economy, ecology, and society and social issues will continue to gain in importance over the next ten years. If a company wants to remain successful in the future, it must adapt its business processes and strategies to sustainability - 79 percent of the companies surveyed agreed with this. Despite the high relevance attributed to the topic of sustainability in general, still just under a third of respondents have not defined a sustainability strategy for their company. A quarter of the companies surveyed have a sustainability strategy, but this runs parallel to the business strategy. Fortunately, at 45 percent of the companies, the sustainability strategy is already an integral part of the business strategy. "We see that many companies are in the middle of the transformation process. That is a good sign. But there is also still a lot to do," says Prof. Dr. Brian Rüeger, Head of the Institute for Marketing Management at ZHAW.

Conflicting classical corporate objectives and sustainability goals

The majority of companies (85 percent) have defined sustainability goals, but these are also anchored in the business strategy of only 38 percent of the companies. For many companies, sustainability goals only serve as orientation or are not compatible with corporate goals. This problem becomes even more apparent when it comes to monitoring the goals achieved. "Many companies still find it difficult to measure the success of their sustainability efforts and also to incorporate these figures into future decisions. In 66 percent of cases, the achievement or non-achievement of goals has no consequence, which can be particularly problematic in the case of conflicting goals," says Dr. Pia Furchheim, co-director of the Sustainability Lab at the Institute for Marketing Management.

Customers as the biggest driver and at the same time the biggest barrier to sustainability

According to the authors of the study, one exciting finding is the field of tension in which companies find themselves today. Customer requirements and expectations are among the strongest drivers behind companies' sustainability efforts. At the same time, more than 60 percent of the companies see customers as the biggest barrier to sustainability. It was found that customers are still not sufficiently aware of sustainability and are generally not willing to bear the additional costs for sustainable alternatives. For Dr. Pia Furchheim, this is "a stalemate between companies and customers: Both sides want to be more sustainable, but fail to accommodate the other".

Sustainability communication with the handbrake on

Although many companies have already achieved initial milestones, only a fraction of these are communicated to the public. On the one hand, companies want to be perceived as sustainable; on the other hand, the fear of "greenwashing" accusations hangs over companies like a sword of Damocles. As a result, many companies keep quiet about their successes and measures in terms of sustainability - an approach also known as "greenhushing." "What is problematic about this approach is that companies give away unused potential. It also slows down awareness-raising and transformation processes across the industry. If everyone only works for themselves in silence, how can we learn from each other?" says Prof. Dr. Brian Rüeger.

The credibility of sustainability efforts depends on various factors. The top priority is congruence between corporate action and communication. Sustainability should not just be lip service. A must-have is the provability of the statements made. It is also important that sustainability is lived by employees and communicated to the outside world. Sustainability is not a one-time project, but a continuous process that requires constant adjustments and reviews. Internal and external communication should be continuous and transparent, and failures and setbacks may also be communicated.

From "low-hanging fruits" to long-term vision

On the road to sustainability, most companies start with the "low-hanging fruits", i.e. measures that can generally be implemented quickly. For example, 45 percent of the companies surveyed are taking measures in the area of infrastructure and furniture (e.g., switching to energy efficiency), while 43 percent are taking measures in the area of human resources (e.g., equal pay). More complex measures that move away from a linear economy toward a circular economy (e.g., new business models such as Product as a Service, Circular by Design, Reverse Logistics, etc.) are still in their infancy. "The future lies in the circular economy. Even if the switch to sustainability sounds challenging, companies should not shy away from the path and set the necessary course early on. Sustainability must be anchored in the corporate strategy and culture for the long term," concludes Dr. Pia Furchheim's study.

Source: ZHAW