How industrial companies handle the issue of sustainability

Increasing environmental awareness in society and growing environmental requirements are forcing companies to adapt their operating processes and supply chains. The expectation is that companies will operate more sustainably and take more responsibility for their impact. This often creates a tension between increasing prosperity and environmental impact.

Raw materials are the basis of the economic and consumer world and are essential for industry, which in turn contributes significantly to society's prosperity. However, the consumption of resources by industry also has a considerable impact on the environment. In addition, technological developments in mobility, decarbonisation and advancing digitalisation are leading to an increasing demand for raw materials such as battery metals and rare earths.

In this sense, the sustainable use of resources and energy is becoming increasingly important. In addition, industry is becoming increasingly dependent on scarce raw materials for production, which further exacerbates the challenges of ensuring a stable supply.

• How does the industry assess these challenges?
• What relevance does the topic of sustainability have for them?
• How are ecological, social and economic goals linked in companies?
• What approach do companies choose to integrate sustainability into their strategy?

Together with Lünendonk and two other study partners, we surveyed 113 companies from various industrial sectors.

Our survey clearly shows the high relevance of sustainability aspects in industrial companies. Around 80 per cent have developed a corresponding strategy. However, only a third of them have already implemented this strategy. In a sector comparison, the automotive industry is the most advanced alongside the food industry. The greatest need to catch up is in mechanical and plant engineering and in the metal and electrical industry. The fact is that companies are under time pressure. From 1 January 2024, companies of public interest and with more than 500 employees must report on their sustainability efforts. On a positive note, it should be emphasised that the topic of sustainability plays a strong role for company management at 90 percent of the companies surveyed. Sustainability has also become an integral component for supervisory bodies (87%) and for employees and job applicants (78%).

Most of the companies we surveyed stated that the topic of sustainability is currently not assigned to a single person, but to several functions. 64 per cent have appointed a Head of Sustainability or a Sustainability Officer who is responsible for sustainability in production. A majority of companies (58 per cent) already provide extra budgets for the sustainability agenda, with around 62 per cent of the companies surveyed allocating their budgets in a range of two to four per cent of the respective production costs. The funds are mostly earmarked for specific purposes, with the reduction of emissions, the optimisation of energy efficiency and the use of resources being the most important projects.

Over 90 per cent of companies want to systematically record ESG data using digital tools. 32 per cent of respondents stated that their companies had already implemented digital solutions to collect relevant data. Companies cited the reduction of their emissions, energy consumption, waste and water consumption as the most important aspects of their sustainability strategy. The companies surveyed want digital technologies to be easy to use, quick and simple to implement in existing systems and processes, as well as live measurement and automated preparation and verification of data. In addition to the budget for digitalisation and automation, the main requirements are human resources, employee acceptance, clear guidelines and a suitable strategy.