Be the
future
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Changing
with the times
Recent years have seen shifting market conditions, especially those around environmental impact and eco-friendly operations. Today, you must ensure your organization is sustainable if you hope to maximize its value over time. As expectations among stakeholders like governments, investors, customers, and employees evolve toward a greener vision for the future, companies must also adapt and help create it.
The time has come for companies to transition to more eco-friendly operations or products to avoid becoming obsolete. Decision-makers should also understand that the efficiencies and innovations brought about by more sustainability-oriented operations will help empower them through potential economic downturns.
"Right now, we’re seeing conventional electricity prices rise while their sources are becoming depleted. Using renewable energy is becoming an obvious way to ensure the resilience of your business.”
Arthur Arrighi, Expert in CSR, Electric Mobility, Energy Transition, Renewable energy at Capgemini Invent.
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Follow the
(sustainability) leader
Companies must meet continuing demand for sustainable product design and manufacturing or risk falling behind the curve. We see this playing out in Europe, where demand for recycled plastics has exceeded local supply. By investing in sustainable processes today, suppliers will also be future-proofing their production lines.
Less than half of executives say their company is currently focusing on redesigning products or processes along sustainable lines. But we see many success stories, too. The automotive industry is paving the way in end-of-life reuse and recycling. In the EU in 2019, 95% of components from scrapped light goods vehicles (passenger cars, vans, etc.) were reused and recovered, and a full 89.6% were reused and recycled.1
Some businesses are transitioning to stay ahead of expected increases in government regulations that could impact business models, available resources, and even talent and personnel. We see that sustainability is quickly becoming the “license-to-operate,” with governments worldwide drafting legislation for reduced emissions and rolling out green taxation. Many are enforcing tighter regulations, while offering grants and subsidies to incentivize sustainability. A full redesign of the operating model will be necessary for any business that aims to become truly resilient.
Dematerialization is an effective tool to start building supply chain resilience today; another is designing for product durability, modularity, recyclability, and recoverability. This reduces the material used and extends product life. A full redesign of the operating model will be necessary for any business that aims to become truly resilient.
And, though it may seem counter-intuitive, investing in green practices is ever more vital as the world faces an economic recession. Companies with a strong sustainability focus typically recover more quickly from economic downturns than those without. A failure to act now could seriously damage the relevance of a company and, ultimately, its survival.
“Sustainability is becoming an essential aspect of every industry we work with – and seeking eco-friendly alternatives to traditional resources just makes good business sense. For example, renewable energy sourcing can increase your brand image and your energy procurement competitiveness.”
Arthur Arrighi, Expert in CSR, Electric Mobility, Energy Transition, Renewable energy at Capgemini Invent.
In the EU in 2019,
of components from scrapped light goods vehicles (passenger cars, vans, etc.) were reused and recovered, and a full 89.6% were reused and recycled.1
Trend watch 2023
Check your partners
Many companies are building sustainability into every level of operations to make the most of changing market conditions. Leaders with an eye to optimizing the value of their companies will be monitoring coming trends for 2023 and thinking beyond what’s right in front of them to remain relevant.
Developing a more sustainable supply chain is one specific way to prepare your organization for an unpredictable future. Outside sources implicated in the organization’s value chain, such as its suppliers, present a risky variable subject to fluctuations in availability related, for example, to climate conditions or market trends. The emissions from these types of sources are also often the biggest contributor to a company’s carbon footprint.2
A company seeking to transition to more future-proof operations – both for the planet and for its bottom line – must first carefully track and analyze its partners and providers in terms of their own impacts on the planet. One potential avenue is designing stricter sustainability reporting requirements for prospective suppliers.
Logistics is another specific way a company can put its best foot forward, and encourage other companies in its ecosystem to do the same. The use of low-carbon fuels, electric vehicles and energy-efficient fleets will all contribute to lesser overall environmental impact. Building environmental concerns in at this step will send compounding positive effects all the way long the supply chain.
Tech for the planet
Better data with digital tools
In your company’s sustainable future, data will be king. Using digital tools to collect and share operating data can help ensure compliance with all regulations, national and international. It can also help support data-driven governance, where executives use emissions data to guide decision making.
Artificial intelligence (AI) and Machine Learning (ML) have a crucial part to play in crunching big data and providing invaluable insights to make business decisions. Increasingly, we are seeing creative applications of AI fuelling innovation and supporting sustainable design but looking forward, leaders should invest and scale AI across the organization, embedding the technology into all processes and workflows.
of companies have seen higher rates of revenue growth since adopting sustainable design principles3
GO!
Your turn
There are a number of things executives should do in the short term to help their companies stay relevant and resilient.
In this business driver we mix first movers and internal leaders by using leaders each time / maybe business leader or executive? To be discussed
If you're the CFO
The Chief Financial Officer will need to ensure all employees understand the value of the changes being made.
This means you must keep yourself well-informed of the shifting metrics of sustainability, continually accessing the latest and most accurate data in order to grasp the complete picture.
Working with the CEO, you and your team should lend your financial expertise to creating, measuring, and reporting on environmental targets, both internally and externally, and communicating their business benefits.
If you are the CTIO
As the Chief Technology/Information Officer, you will be called upon to strengthen sustainable IT initiatives throughout your organization.
Reducing the environmental impact of IT will require you to first conduct careful assessments to gauge and quantify the carbon footprint of this technology.
Once the sources of IT emissions are clearly understood, you must create a comprehensive sustainable IT strategy that is fully aligned with the company’s growth plans.
If you're the CDO
As the Chief Design/Product Officer, you should endeavor to future-proof your company’s products by embedding sustainability thinking into the design process.
Products and processes can be made more sustainable through the use of renewable materials and by reducing packaging. By using digital twins and machine learning, you can identify efficiencies throughout the value chain.
You should equip design teams with the necessary tools and guidelines to evaluate trade-offs and navigate decisions in the development of eco-friendly products and services that are in line with the company’s business objectives.