Sustainability and climate protection are omnipresent, global issues. They are reported on daily in the media, politicians rarely miss an opportunity to highlight their achievements in this regard, and even in energy-intensive and climate-damaging industries, the topic has now fully arrived. In the spirit of increased networking between international and domestic decision-makers, ÖBAG hosted a hybrid conference on June 29, 2021, on Sustainability issue.
But as Alexander Egit, Managing Director of Greenpeace in Central and Eastern Europe, stated at the ÖBAG Sustainability Forum, discussion alone is not enough – real, concrete, and measurable change is needed. Climate protection and sustainability must be pursued with the same rigor and measured by the same metrics as the core business itself.
Emissions, energy efficiency, sustainability in supply chains and thus a true circular economy are crucial factors that must be reflected in KPIs.
Alexander Egit, Managing Director of Greenpeace Central and Eastern Europe
The close intertwining of ecology and economy expressed in this way is crucial for a holistic approach to the necessary transformation. It is all the more important that the financial market is already changing in this regard, as can be seen in the new strategies of the European Central Bank and the European Investment Bank, or in the involvement of progressive institutional investors, for example from Scandinavia.
It's crucial to move away from exclusive CSR and avoid greenwashing. Key to this is the measurability of changes within companies. This requires appropriate leadership, absolute goals, real benchmarks and KPIs—and, above all, motivated employees who want to change and thus drive the necessary transformation.
Because true success, both in a business sense and in transformation, ultimately depends on the people involved. The diverse perspectives and motivations people bring to the table are significantly shaped by the diversity within an organization. Many perspectives—and thus many different, creative ideas and approaches to solutions—are crucial for mastering the massively increased pace of change and the challenges of our time as a whole, says Ana-Christina Grohnert of the 'Charter for Diversity'.
Variety and diversity automatically increase opportunities and options, broaden perspectives and networks with employees and customers, and enable new approaches to solutions.
Ana-Christina Grohnert, Chair of the NGO Charta der Vielfalt
The more diversity and perspectives, people with different lifestyles and different backgrounds, there are in a company, the better connected the company is with its employees, partners and customers. The management level of a company is also important – boards with diverse composition are generally more successful – and ultimately the corporate culture itself. A culture that not only promotes diversity but also the ability to adapt and learn is better able to deal with constantly changing conditions. These qualities must be valued just as much as diversity in a company. People's motivation is also crucial – and according to Grohnert, this is also changing. While a Porsche in the underground car park used to be the motivating factor, today people are much more likely to want to work on interesting projects and develop the best and most sustainable products possible.
Wolfgang Anzengruber, long-time VERBUND CEO and now a member of the ÖBAG Participation Committee, also agrees. Employees in companies must believe in change. A positive narrative is needed, moving away from quantitative growth toward qualitative growth, and a new definition of prosperity that is compatible with climate protection and resource conservation.
One thing is now undisputed: Sustainability is a key factor for economic success and pays off. This is demonstrated by Verbund's transformation away from coal-fired power and fossil natural gas to renewable energy. International examples, such as the energy producers Orsted or Neste, which have been able to massively increase sales, profits and company value through the fundamental restructuring of their core business. On the other hand, the costs of inaction on the climate crisis are difficult to manage, as nationale and global Studies clearly show.
If we fail to get the ecological problems under control quickly, we will face economic problems on an overwhelming scale.
Wolfgang Anzengruber, ÖBAG Participation Committee
Reasonable framework conditions and true cost transparency are therefore crucial. This topic can be well illustrated by the example of nuclear energy. Nuclear power is one of the most expensive forms of energy production in general and is associated with massive risks and unresolved future problems. Nevertheless, investments in nuclear reactors are being made because the actual costs are passed on to the future and society. Businesses make investments when they are profitable, according to the experienced manager. If true costs are established – for example, through a CO2 price – the necessary investments for transformation processes will quickly become profitable.
For investors, in the context of sustainability, other factors besides a company's core business also play an important role, such as corporate culture. Especially in young companies, it's possible to develop a different corporate culture, although challenges lurk here as well. One must also be able to afford to forgo salary in a start-up – in the hope of later reaping the rewards of a good position in a successful technology company. According to Nina Wöss, Chair of the Austrian Private Equity and Venture Capital Organisation, investors are also in demand in this regard.
This encompasses all aspects of sustainability – ecological, social, and economic. According to Wöss, the decisive question for applicants is increasingly whether aspects such as gender equality are actually practiced in companies or are merely PR measures: Are employees truly heard, are they given time and resources to advocate for diversity within the company – or is it merely an add-on to the existing workload?
Lothar Lockl is an entrepreneur, strategy, and media consultant. He worked for the environmental organization Global 2000 for 10 years and is currently co-managing director of Lockl & Keck. Since 2020, he has been a member of the ORF Foundation Board.
