Value creation is a cornerstone of modern business leadership. Grappling with serious social and ecological challenges, organizations around the world are increasingly focusing on how they can deliver value to impacted communities and stakeholders.
Value-driven leadership does not end with delivering and selling products and services. It also entails a steadfast commitment to sustainable development while also generating profit for businesses.
According to a survey of 1,000 executives conducted by the Association of Executive Search and Leadership Consultants (AESC), 67% said they were directing their efforts toward sustainability as part of their long-term growth strategy, collectively known as ESG (environmental, social, and governance)
The survey underscores a McKinsey & Co. report, which states that focusing on ESG can lead to “greater value creation in essential business areas.”
One country at the forefront of highlighting ESG is Germany. From the federal government that has earmarked additional funds for climate protection to states like Baden-Wuerttemberg that invested some €17 billion to support sustainable development, Germany is becoming a model in ESG practices for many countries.
Here are three German brands that have shown how strong leadership in ESG created value for their stakeholders:
Siemens’ technology helped its clients lower energy and plastic consumption
German conglomerate Siemens has a wide environmental portfolio of products and solutions that help its clients transition to low-carbon operations. One of those solutions is Siemens’ digital twin technology, which helped UK machinery manufacturing company Trakrap develop a packaging method that reduced energy consumption by 90% and plastic consumption by 70%.
This technology enables the user to create a virtual version of a physical product or process (i.e. its digital twin) that can be modified to demonstrate its impact under different conditions or its performance with different design modifications.
“Sustainability is a business imperative, but it is also one of the greatest business opportunities for us,” said Siemens Senior Vice President of Sustainability and Operational Excellence Jenny Bofinger-Schuster.
Henkel provides sustainable products and innovative processes to reduce the environmental impact of the metal industry
Henkel has been a trusted German brand in the metal pretreatment domain for years. Committing to “purposeful growth” is the foundation of its ESG strategy. Testament to this commitment are the three sustainability awards presented to Henkel by its clients – Novelis, ArcelorMittal and BSH – for being an outstanding partner in supporting their sustainability goals through innovation.
Through a comprehensive range of Henkel’s sustainable cleaners, surface treatments, coatings and lubricants, the end-user is able to reduce wastewater output, material consumption, as well as energy and carbon emissions. Henkel also uses innovative data-driven systems to optimize metal pre-treatment processes.
“Delivering the highest performance while conserving resources is at the heart of continuous optimization approach,” said Henkel Adhesive Technologies Vice President Metals EIMEA Volker Mansfeld.
Lufthansa Cargo takes simple steps to save thousands of tons of fuel every year
As part of its ESG strategy, Lufthansa Cargo has been using lightweight containers on its flights, which has not only reduced carbon emissions by 6,800 tons per year but also led to fuel savings of 2,100 tons.
Another innovative, simple step to reduce its carbon footprint is the usage of a special coating on its aircraft, which decreases frictional resistance by 1% and translates into savings of 3,700 tons of kerosene and about 13,000 tons of carbon dioxide emissions annually.
These measures ensure that aviation fuel is used efficiently, thereby reducing its consumption and increasing its cost savings.
