Sustainability Strategy and Transformation

In economic discourse, sustainable transformation is just as important as digital transformation. After all, an entrepreneurial shift towards sustainable and responsible business practices holds great potential.

Sustainable transformation refers to efforts directed at avoiding future environmental impacts. For instance, a company might set itself the goal of reducing greenhouse gas emissions. At the same time, sustainable transformation aims to enhance positive effects. In line with this thinking, many companies strive for a where the life of raw materials can be significantly extended.

Greenhouse house worker talking with a man customer.

Sustainable business models are not only designed to secure returns for the organization but also to ensure a company’s contribution to society and the environment. In addition, a sustainable approach offers other benefits:

reduced material requirements and energy consumption
tapping new business fields
compliance with regulatory requirements
increased competitiveness
added value for society
reduced emissions
staff retention and motivation

At valantic, we understand the role that business models and sustainability strategies play in such endeavors. We provide insights on how sustainable transformation can succeed.

Agronomist using digital tablet for analysis of plantation

The relevance of business models in sustainable transformation

The business model is the cornerstone of every company. It outlines the relationships and principles of how a business creates value for its customers while at the same time securing revenue. Business models are always developed and evaluated using a process supported by various methods and tools.

The roadmap to a sustainable business

How can companies develop an effective sustainability strategy and successfully integrate it into their structures and processes? To do this, companies need to ask themselves some essential questions similar to the approach described above:

Impulse

External factors trigger a review of the business model. Impulses for this review include trends, changing customer requirements, or legal and/or regulatory requirements.

Discover

What are the customers’ requirements?
What must/can be reported and in what manner?
What uncontrollable environmental impacts are to be expected?
What are the users’ “sustainability ambitions”?
What are the relevant sustainability criteria for my business model?
Where do I stand with my company in terms of relevant sustainability criteria?
How do I define the status quo of my sustainability performance?

Vision

What is the company’s level of ambition in terms of sustainability and where does the competition stand?
How should the topic of sustainability be embedded both internally and externally?
What are you willing to change, and what are you not willing to change?
What social impacts do you want to achieve?
How will stakeholders be involved?
What are the specific actions for products or services?

Design

How can non-sustainable elements of the business model be replaced with sustainable elements while maintaining or increasing profit?
What happens to the products at the end of their lifecycle?Is this aspect considered during the development phase?
Are there any possibilities for recycling, reuse, or refurbishment?

Testing

Which assumptions are fundamental and yet unknown?
How can these be tested with minimal effort and high significance?
How can the results be evaluated? (e.g. using the Product Environmental Footprint)
Which indicators can be used to measure performance?

Build & Learn

How is the sustainable business model put into practice?
How can the company-wide sustainability strategy be integrated pragmatically and efficiently in all relevant departments such as supply chain management and purchasing?
What indicators are used to measure sustainable success?
How can the company become even more sustainable?
What can be learned from other companies?

Sustainability strategy for sustainable transformation

An effective long-term approach to sustainability is based on a sustainability strategy that must be specifically developed and implemented for each company. This involves defining a measurable vision, mission, and company-wide objectives, using tools such as OKRs (Objectives & Key Results).

In a constantly changing world, a sustainability strategy tailored to the specifics and goals of your company is essential. At valantic, we focus on establishing a bespoke sustainability strategy that includes a clear vision, an inspiring mission, and measurable objectives.

Two businessmen wearing hardhats having a meeting on the roof of a company building with solar panels

A comprehensive understanding of the internal and external factors that mutually influence a company is essential for defining a sustainability strategy. This is the only way to identify key sustainability issues and set priorities. For this reason, we carry out a comprehensive materiality analysis with you in addition to a stakeholder analysis.

Based on the results of the analysis, we work with you to develop the vision and mission of your sustainability strategy. The vision formulates a long-term, positive change that your company wants to bring about in the world. The mission defines the purpose and values and describes in detail how the vision is to be achieved. At valantic, we work according to the OKR framework (Objectives & Key Results) and are guided by leading sustainability standards such as the Corporate Sustainability Reporting Directive (CSRD), the Global Reporting Initiative (GRI), the Greenhouse Gas Protocol (GHGP) and the Science Based Targets (SBTi). Supply Chain Management and Purchasing in particular play a key role as central drivers in achieving our sustainability goals. In SCM and purchasing processes, it is important to analyze the extent to which suitable sustainability criteria are already taken into account when selecting suppliers, for example, and whether these are also anchored in a binding supplier evaluation model in the strategic sourcing process. In supplier management, for example, it is important to use the right criteria to make visible which suppliers lead to which sustainability aspects or are suitable for close strategic cooperation.

Diverse group of businesspeople discussing work while standing together in a bright modern office corridor

In sustainable product group management and actions, specific product group strategies and sustainability initiatives are derived and prioritized for implementation. Product group initiatives range from optimizing outbound and inbound logistics through improved route planning and the selection of “best emission providers” to switching to sustainable packaging elements and conducting pilots on renewable energies. A step-by-step plan initially guarantees the selection of “quick wins”. These are initiatives that make a particularly large contribution to increasing sustainability performance at a low implementation cost.

Businesswoman sharing laptop with colleague working in corridor

This proven framework is a valuable tool in the realm of digital transformation as well as in the field of sustainability strategies, helping to set ambitious goals and manage their effective implementation. These goals encompass all areas of your business, including both short- and long-term priorities.

In addition to developing and evaluating sustainable business models, we also support companies with comprehensive organizational transformation – more specifically, with integrating the sustainability strategy into their business processes. We implement sustainability initiatives and projects that are gradually integrated into your organization and its operational processes. Examples of ecological transformation include calculating the carbon footprint and deriving a reduction path, or introducing a holistic CO₂ tool to support these efforts.

Volunteers hand over packages to those in need; ESG - Social

In addition to new sustainability processes, structural changes within the organization and raising employee awareness are crucial. We support the development of a sustainable corporate culture that involves key leaders and allocates resources. Our change management consulting approaches include establishing a governance structure, forming a core sustainability team, and appointing sustainability ambassadors.

Through employee training and special workshops, we enhance the skills of employees and reduce resistance to change. This ensures that the sustainable business model is not only dictated by top management but also embraced by all employees who support the company’s goals and values.

The valantic Target Operating Model

Our valantic approach addresses the three essential areas of processes, organization, and employees, brought together in the Target Operating Model (TOM) concept. Our overarching goal is to ensure that sustainability becomes a central value in all areas of the company in order to achieve a successful sustainable transformation.