Sustainability as a Trend and Strategy

More and more companies are actively working toward climate protection, good corporate governance, and social responsibility. For many businesses, however, the trend toward greater sustainability in the wake of the pandemic comes at an inopportune time. At the same time, this development is also a driver of innovation. This is the conclusion reached by a study conducted by HypoVereinsbank and the sustainability agency akzente—Part of Accenture. It highlights the specific challenges and sustainability efforts of industries such as the automotive sector and its suppliers, utilities, textiles, real estate, logistics, and software.

Individual Sectors in Detail

Utilities are grappling with the consequences of the war in Ukraine and the resulting need to rely even more heavily on renewable energy. This poses a particular challenge for the grid infrastructure, which is not designed for decentralized power generation.

Automotive suppliers are also under pressure. The shift toward e-mobility is imminent. Vehicles are becoming increasingly digital and are expected to drive autonomously in the future. At the same time, the COVID-19 crisis has caused margins—and thus the scope for investment—to plummet.

Logistics companies are struggling in particular with a shortage of drivers and the need to improve working conditions for their employees. On the other hand, they benefit directly from measures that reduce fuel consumption and thus their carbon footprint.

The picture for the software industry is mixed. On the one hand, it makes sustainability efforts in other industries possible in the first place. On the other hand, inefficiently programmed applications consume too much electricity.

Compliance with labor and human rights standards, resource use in raw material processing, and the desire for more recycling remain perennial issues in the textile industry. The construction industry, on the other hand, is currently prioritizing climate protection, energy efficiency, and the use of renewable energy.

These Trends Dominate

Despite all the differences between industries, there are also commonalities and trends: 

Companies’ motivation to invest in sustainability is growing. However, external regulatory pressures remain the main drivers of the green transition. Furthermore, for many companies, the supply chain is the sticking point on the path to more sustainable production: On the one hand, the obligation to audit their own supply chains poses a major financial and structural challenge for many companies. On the other hand, they are often themselves part of the supply chains of large corporations and multinationals that are pushing for rapid implementation.

Smaller businesses, in particular, still lack consistent sustainability strategies, structures, or suitable personnel. Furthermore, the requirements associated with mandatory sustainability reporting are often underestimated. There is a lack of systems and standardized formats to process and report on the vast amount of data.

The buzz surrounding sustainability also has its benefits. It is clear that it is triggering a wave of modernization that is better positioning companies for the future. For example, the collection and integration of a wide variety of data—necessary for creating the now-required sustainability reports—are forcing companies to embrace greater digitalization. The resulting transparency and the need to set goals are driving numerous improvement measures. After all, companies that do not make sufficient efforts toward sustainability today will disappear from the market tomorrow.