Footprint Leaders Circle

Ute Haedke Podcast

The chemical industry is often filed under sustainability's problem column. Ute Haedke, sustainability manager at Tosoh Europe N.V., makes the opposite case, and she has the vantage point to back it. She runs sustainability operations across roughly seven business lines and three sites with a team operating inside a company of around 200 people, spanning everything from ceramics to clinical diagnostics.

On paper, chemistry reads as the thing to decarbonize away from. In practice, Ute argues, it is the discipline that makes decarbonization possible at all — through the products it supplies and, just as importantly, the processes it chooses. The European chemical sector is a key player here: it turns over €635 billion a year, employs 1.2 million people directly, and spans around 31,000 companies, 97% of them SMEs. What that scale enables, and how a sustainability manager turns it into commercial and societal value, is what this conversation with Ute unpacks.

This article tackles three key questions: why Ute reframes the industry as an enabler rather than a polluter, how she converts sustainability into value for customers without losing on price, and what regulation and internal culture really demand of a lean sustainability function.

1. The Enabler, Not the Polluter: Reframing the Chemical Industry

The necessity of this reframe stems from a stubborn perception problem. Many people tend to associate the chemical industry with pollution — a reputation Ute traces to the industry's own history coupled with a reluctance to look at the trade-offs honestly.

“I think it dates back to a time where chemistry was by default super polluting. If I interpret this emotionally, I think people want to just not be bothered with all the negative sides of chemistry. However, I am convinced that this statement ignores the transformative power of the chemical industry. In almost every part of life, there's products coming from the chemical industry. There's chemistry in anything we do and anything we use. So really that determines our lives. We are an enabler of sustainability. And also, I want to stress really that it's through the products, but it's also through the processes that we use. You can make the same product by different processes. There's a polluting process and a clean process. There is a high emission emitting process and a low emitting process. But also it's about economy. We have a huge part when we look in Europe or in Germany in particular, it's really a huge part of the economy, we generate taxes, we create jobs. All this is a part of what how society and economy functions.”

The economic weight Ute points to is significant here. Germany alone accounts for roughly a third of European chemical sales, and across the EU the sector underpins three to five times more indirect jobs than the 1.2 million it employs directly. Her "same product, different process" point is important too: the European industry has already improved its energy efficiency by 40% since 1990 . The lever she describes, which here is choosing the low-emission route to an identical end product, is one the sector has been pulling for a long time.

This process is particularly clear in plastics, which Ute uses as her worked example of what transformation actually requires.

“For example, if you look at plastics, most of the plastics today are fossil-based. So the chemical industry really covers a great deal of the value chain from the crude oil to the final product. There's all kinds of processes involved that enable it, that make that transformation to the final plastics product. But there's also alternatives out there. Now we need to develop, first of all, the substances, now the origin, where do those substances and the incoming products come from. Then we need to make sure that there's actually no contamination. And then we need to also look at how energy intense are those processes. All this is the really the product side, right? Really just the substances, how do we transform them and which do we use as origin or what do we use as origin? For all of this, we need a lot of expertise in plenty of fields. There's the chemistry knowledge itself, but it's a lot also about data, about AI and modeling, process modeling and all this. So if we transform all this, which the chemical industry actually is working on a lot already, so this transformation is kind of laying the basis for the same product, the same use in our everyday lives, but manufactured in a different way and still maintaining people's well-being both on the user side and also on the producer side. And I'm using this example because a great title for all of this is Circular Economy. Circular economy really is one of the main fields of action that we need in sustainability, because we need to transition from a linear economy that just uses the fossil-based materials and dumps them in the waste at some point to not dumping them in a waste, but really reusing the materials that were used at once and funneling them back into the used circle.”

The data shows how early this transition still is. Circular plastics (recycled content plus non-fossil feedstocks) account for just 13.5% of new plastic products made in Europe, against an industry target of 25% by 2030 . And the loop Ute describes needs to be better secured: Europe's plastics recycling rate reached only 29.6% in 2024, with more than 70% of collected plastic waste still going to incineration or landfill. Her point about feedstock origin and process energy is not abstract chemistry, it is the specific bottleneck standing between a linear system and a circular one.

Ute places the chemical industry at the centre of the transition rather than the edge of it.

“To me, this is pretty much what I replied to before. I gave you the example of the circular economy and the chemical industry is a key industry of that. Without the chemical industry, we will never get to a circularity. We need to recycle every single material that we have in this country or in this world. And as I said, this not only requires the expertise and the materials and the technologies, but also the political decisions enabling those. There's so many obstacles that companies need to overcome if they want to contribute to this, right? Because if you look at this value chain, that's actually a closed loop value chain. It's like a value loop. And every company provides one step in that value loop. Maybe there's companies that contribute more than one step, but every single step needs materials, needs technology, needs knowledge, will provide jobs and will provide income. And I think this is a combination of factors that makes us key for this whole transition.

I really see that there's so much to gain, and I am in this industry that is key, and I just think that there's so much to gain, but also to develop. So really we can build this future together. And that's what I like. Sustainability is a bit under threat. To me, this is a political thing because the causes that we have, we have climate change, we have biodiversity crises, we have crises in biogeochemical flows, we have political things like the decline of democracies and the rise of autocracies. All this to me comes together and to me the answer is sustainability. So we can build a society and an economy that is there for people, for every single being.”

The "value loop" framing is the strategic core of the argument here. Circularity is not one company's project, but a chain where each link supplies materials, technology, knowledge, and jobs. This idea of a value loop reframes the industry's economic footprint from a liability to defend into the infrastructure the transition from linear to circular runs on.

2. From Global Plants to Customer Scope: Where Sustainability Becomes Value

If the industry is the enabler, the sustainability manager's job is to find the enabling levers inside an unusually fragmented business. Ute explains that the diversity which makes the work interesting also makes it hard.

“I think I touched on this already and in a certain way, the chemical industry is one of those few industries that is super diverse. If you look at the value chain that I just described, the many steps that are involved in the transformation, each of the steps requires a whole range of expertise, fields of expertise. And so the diversity is super beautiful and it makes it intellectually stimulating. But really also, as for me as a sustainability manager, that requires both a deep understanding of how the industry functions and also a good network of people that know their special fields. So really, this is a key thing. Have a good network of people that know what they're doing and that care about the cause. That brings me to my role within Tosoh. We in a way are representative of the diversity of that industry because, as I said, we cover or I am responsible for about seven business lines, that really looking from the outside have nothing to do with each other. So really we make ceramics, we make chemical reagents for rubber creation, we make a lot of chemical reagents, but we also make diagnostic instruments for the healthcare and clinic industry, but also pharma industry buys products for their manufacturing processes. The diversity of the product is one end, but it reflects also the diversity of the markets that we sell to. And within Tosoh, we really have a really deep understanding of those markets. And I have to have the overview and extract the key levers for where can we support our customers to be more sustainable and how can we get all this information from our customers to communicate internally for product development, for service development, all this.”

This positions sustainability as an interface that links what global operations produce to what specific customer markets need, and we can examine this further through looking at the carbon version of this interface.

“If you look at the sustainability-related activities and efforts that our mother company in Japan does, this is really substantial. So there is a huge decarbonization plan that is backed up by 600 million EUR investments. In order to transform all the hard manufacturing sites, all the plants and all that, to emit less carbon and to use less power input. Of course, this translates to a lower carbon footprint of our products. Now, I'm using the carbon example, right? But as I said, for the circularity example, it exemplifies the processes that apply to other aspects such as sustainable materials or you name it. Now get back to the carbon thing. It translates to a lower carbon footprint of our products, which now we sell in Europe. And that lowers the carbon footprint of our customers in their scope three. Both actually scope 3 and scope 2 because they also need to buy the energy to make their processes running. And that's how I see our role, really. We sell those products and we enable our customers to become more sustainable themselves. And that's really the interesting part. And now my role is, where are the priorities? Where can we really make the biggest impact? Second is how do we communicate this to our business partners? Because they need to know and it needs to be de-complexified because otherwise it's really too much to take usually. And the challenge now is to remain price competitive. Because when people hear sustainability or sustainable products or whatever it is, then they think of higher prices. Now, that might look like it at first glance, but if you take the entire calculation of your process costs into account, then a product that uses less energy, a product that uses less water, a product that has a lower carbon footprint and that lowers your entire scope two and three carbon footprint, that will actually bring a lot of cost savings at the end.”

The parent-company investment Ute references is important to consider here. Her insight is that those plant-level reductions do not stay with the producer, but instead flow downstream into customers' Scope 2 and Scope 3 accounts. A lower-carbon input is, mechanically, a lower-carbon customer footprint.

That is where the "de-complexified" point takes center stage. A product's carbon advantage lacks value to a buyer who cannot see it in their own data. Translating a manufacturer's process improvements into the Scope 3 line items a customer actually reports is precisely the kind of task that platforms built to manage product- and supply-chain-level emissions (Footprint Intelligence among them) exist to handle. The harder a sustainability claim is to verify, the less commercial value it carries.

Ute's view on price is an interesting moment in the conversation, and she returns to it with a clear playbook for making the green transition less risky.

“To be profitable and to maintain your business operations as a company, we need to ensure a cash flow. So that's what I would advise to any company. Maintain your existing product portfolio as is and continue selling it because that's how you lay the basis for everything else. Now, you can, for example, start developing a green line. That has so many advantages. First of all, you can gather experience. How do I develop this? What is it actually about? How do I define a green line for my products? Maybe there is one aspect that's green for this very alternative product, but all the rest is as the existing products. And then I add features over time. And then I also gain experience by selling them, what sells well. What do customers actually appreciate or not? The price question is often oversimplified, I think. Yes, I do acknowledge price sensitivity is really at the forefront and that's what essentially determines the decision of the purchaser. But if you look at the entire process efficiency, then a product that has a higher price to start with might come in cheaper because the use of energy, the use of water, the use of other ingredients for the process are lowered through that product. Now, the beauty is to start that conversation with a customer. So you have a lot of internal education to do. You need to make your own sales people aware. How do I start that conversation? How do I identify the levers that are relevant for my customer beyond the price? And that requires really great customer intimacy.”

The advice here is practical: protect the cash-generating core, build a "green line" alongside it to gather real market feedback, and shift the buyer conversation from sticker price to total process cost. This discipline’s internal elements are significant: a process of equipping the sales team to argue total cost of ownership, not just unit price. Sustainability value that cannot be articulated commercially is often more difficult to realize.

3. Regulation, Burden, and Building a Culture That Lasts

Ute explains that her role was, in large part, created by regulation, and then reshaped by the rollback of it. Her account of the CSRD and the omnibus package is a clarified read on what reporting rules cost a small, complex business.

“As I said, my role was inspired a lot by the reporting requirements through the CSRD. And then we were kind of stopped in the middle of this run because the omnibus package arrived. It's not like it arrived all of a sudden, but still we saw it coming and then we saw, okay, there is probably going to be substantial changes in the scope and the companies having reporting requirements. So we said, okay, let's wait. What is actually required from us? Like you have to take into account that we are both a small company or small set of companies, I should say, and have a complex structure. I said there's three sites and there are seven business lines, and we are managing all this with 200 people. So this is a challenge to do a double materiality analysis, to manage all the data, to first of all understand which part is actually applicable to us. That's the main question usually. So that's why we decided, okay, so far this has been more of a burden and a workload rather than a positive and valuable output for us. And that's why we said, okay, we stop here, we wait, and then we see if we're still in scope of that regulation. If we're not, then we can actually focus on other stuff. And that's what happened. So we had invested a lot of time doing the double materiality analysis, and then we said, okay, let's stop, and then there's no need to do this anymore. Of course, there will be a voluntary report, but there are so many other regulations that push themselves into priority that this is the main driver. And I really am one of the people that is quite convinced that the CSRD is very useful, actually. But it's very stakeholder driven and creates a lot of burden for small companies.”

Here Ute’s judgement call was vindicated by the policy itself. The omnibus package raised the CSRD threshold to companies with more than 1,000 employees and over €450 million in net turnover. These changes were estimated to remove around 80% of previously in-scope companies. A roughly 200-person business is now almost certainly out of mandatory reporting scope. The strategic lesson Ute models is timing: when a regulation is visibly in flux, completing a full double materiality analysis on the old thresholds can mean concentrating effort into a deliverable that later disappears.

But the regulatory engine switching off raises the harder question: without a compliance mandate, what keeps sustainability alive inside a company? Ute's answer is one that centers culture and is anchored to value.

“It comes down to sustainability needing to bring value for the company. So as a sustainability manager, I'm an idealist. I really want to bring value to society and to the world, and I care. And I've come to understand that this also translates to value for the company. Because we, first of all, we provide, we make great products really, and those products are needed for this world. But how we can bring that value to society beyond what we already do and combine that with not doing any harm? That's really the tough question. And the value for the company is really the lever that makes people listen. Because not everybody is like me and not everybody needs to be like me, really be an idealist, but people need to listen and start thinking about this. How do you do this? I started doing internal workshops just to start a conversation internally. What do we actually talk about? And I think this needs to be done on a regular continuing basis. And then in parallel, try to provide information, how do we deliver this value? How can we maybe access other customers that used to be less interested in our products? And they might be more interested because we provide an extra value through sustainability. These are the kinds of things. And then once people have started thinking about it, they can actually come up with ideas. And then you also hear complaints about, oh, we've been doing this for a long time, but actually we shouldn't. So this is what they do. And then I end up not having all that much time to do all this. And that's actually the next step that I would like to implement at some point, to kind of create a mindset within people so they can actually take action themselves. It's not all on me. It's about a business culture that I want to establish.”

The closing ambition is the one most sustainability managers will recognise: distributing ownership so the function does not live or die with a single person. Workshops, value-framed business cases, and a steady flow of internal conversation are how Ute moves from being the sustainability bottleneck to building a culture where colleagues surface ideas and inefficiencies themselves.

When mandatory reporting recedes, the data discipline it requires should not. The double materiality analysis Ute paused still represents a clear map of where a company's impact and risk concentrate. Whether pursued for compliance, a voluntary report, or simply better decisions, doing that work on lean infrastructure rather than reconstructing it from spreadsheets each cycle is what keeps a 200-person team from drowning in it.

Ute's through-line is consistent from chemistry to culture: sustainability earns its seat when it is framed as a value. The industry she works in is, by her account, structurally central to the transition. The central question now is how to prove the enabler case. Who makes that case inside your company when the regulation is no longer making it for you?

 

Ute Haedke Podcast

The chemical industry is often filed under sustainability's problem column. Ute Haedke, sustainability manager at Tosoh Europe, makes the opposite case, and she has the vantage point to back it. She runs sustainability operations across roughly seven business lines and three sites with a team operating inside a company of around 200 people, spanning everything from ceramics to clinical diagnostics.

On paper, chemistry reads as the thing to decarbonize away from. In practice, Ute argues, it is the discipline that makes decarbonization possible at all — through the products it supplies and, just as importantly, the processes it chooses. The European chemical sector is a key player here: it turns over €635 billion a year, employs 1.2 million people directly, and spans around 31,000 companies, 97% of them SMEs. What that scale enables, and how a sustainability manager turns it into commercial and societal value, is what this conversation with Ute unpacks.

This article tackles three key questions: why Ute reframes the industry as an enabler rather than a polluter, how she converts sustainability into value for customers without losing on price, and what regulation and internal culture really demand of a lean sustainability function.

1. The Enabler, Not the Polluter: Reframing the Chemical Industry

The necessity of this reframe stems from a stubborn perception problem. Many people tend to associate the chemical industry with pollution — a reputation Ute traces to the industry's own history coupled with a reluctance to look at the trade-offs honestly.

“I think it dates back to a time where chemistry was by default super polluting. If I interpret this emotionally, I think people want to just not be bothered with all the negative sides of chemistry. However, I am convinced that this statement ignores the transformative power of the chemical industry. In almost every part of life, there's products coming from the chemical industry. There's chemistry in anything we do and anything we use. So really that determines our lives. We are an enabler of sustainability. And also, I want to stress really that it's through the products, but it's also through the processes that we use. You can make the same product by different processes. There's a polluting process and a clean process. There is a high emission emitting process and a low emitting process. But also it's about economy. We have a huge part when we look in Europe or in Germany in particular, it's really a huge part of the economy, we generate taxes, we create jobs. All this is a part of what how society and economy functions.”

The economic weight Ute points to is significant here. Germany alone accounts for roughly a third of European chemical sales, and across the EU the sector underpins three to five times more indirect jobs than the 1.2 million it employs directly. Her "same product, different process" point is important too: the European industry has already improved its energy efficiency by 40% since 1990 . The lever she describes, which here is choosing the low-emission route to an identical end product, is one the sector has been pulling for a long time.

This process is particularly clear in plastics, which Ute uses as her worked example of what transformation actually requires.

“For example, if you look at plastics, most of the plastics today are fossil-based. So the chemical industry really covers a great deal of the value chain from the crude oil to the final product. There's all kinds of processes involved that enable it, that make that transformation to the final plastics product. But there's also alternatives out there. Now we need to develop, first of all, the substances, now the origin, where do those substances and the incoming products come from. Then we need to make sure that there's actually no contamination. And then we need to also look at how energy intense are those processes. All this is the really the product side, right? Really just the substances, how do we transform them and which do we use as origin or what do we use as origin? For all of this, we need a lot of expertise in plenty of fields. There's the chemistry knowledge itself, but it's a lot also about data, about AI and modeling, process modeling and all this. So if we transform all this, which the chemical industry actually is working on a lot already, so this transformation is kind of laying the basis for the same product, the same use in our everyday lives, but manufactured in a different way and still maintaining people's well-being both on the user side and also on the producer side. And I'm using this example because a great title for all of this is Circular Economy. Circular economy really is one of the main fields of action that we need in sustainability, because we need to transition from a linear economy that just uses the fossil-based materials and dumps them in the waste at some point to not dumping them in a waste, but really reusing the materials that were used at once and funneling them back into the used circle.”

The data shows how early this transition still is. Circular plastics (recycled content plus non-fossil feedstocks) account for just 13.5% of new plastic products made in Europe, against an industry target of 25% by 2030 . And the loop Ute describes needs to be better secured: Europe's plastics recycling rate reached only 29.6% in 2024, with more than 70% of collected plastic waste still going to incineration or landfill. Her point about feedstock origin and process energy is not abstract chemistry, it is the specific bottleneck standing between a linear system and a circular one.

Ute places the chemical industry at the centre of the transition rather than the edge of it.

“To me, this is pretty much what I replied to before. I gave you the example of the circular economy and the chemical industry is a key industry of that. Without the chemical industry, we will never get to a circularity. We need to recycle every single material that we have in this country or in this world. And as I said, this not only requires the expertise and the materials and the technologies, but also the political decisions enabling those. There's so many obstacles that companies need to overcome if they want to contribute to this, right? Because if you look at this value chain, that's actually a closed loop value chain. It's like a value loop. And every company provides one step in that value loop. Maybe there's companies that contribute more than one step, but every single step needs materials, needs technology, needs knowledge, will provide jobs and will provide income. And I think this is a combination of factors that makes us key for this whole transition.

I really see that there's so much to gain, and I am in this industry that is key, and I just think that there's so much to gain, but also to develop. So really we can build this future together. And that's what I like. Sustainability is a bit under threat. To me, this is a political thing because the causes that we have, we have climate change, we have biodiversity crises, we have crises in biogeochemical flows, we have political things like the decline of democracies and the rise of autocracies. All this to me comes together and to me the answer is sustainability. So we can build a society and an economy that is there for people, for every single being.”

The "value loop" framing is the strategic core of the argument here. Circularity is not one company's project, but a chain where each link supplies materials, technology, knowledge, and jobs. This idea of a value loop reframes the industry's economic footprint from a liability to defend into the infrastructure the transition from linear to circular runs on.

2. From Global Plants to Customer Scope 3: Where Sustainability Becomes Value

If the industry is the enabler, the sustainability manager's job is to find the enabling levers inside an unusually fragmented business. Ute explains that the diversity which makes the work interesting also makes it hard.

“I think I touched on this already and in a certain way, the chemical industry is one of those few industries that is super diverse. If you look at the value chain that I just described, the many steps that are involved in the transformation, each of the steps requires a whole range of expertise, fields of expertise. And so the diversity is super beautiful and it makes it intellectually stimulating. But really also, as for me as a sustainability manager, that requires both a deep understanding of how the industry functions and also a good network of people that know their special fields. So really, this is a key thing. Have a good network of people that know what they're doing and that care about the cause. That brings me to my role within Tosoh. We in a way are representative of the diversity of that industry because, as I said, we cover or I am responsible for about seven business lines, that really looking from the outside have nothing to do with each other. So really we make ceramics, we make chemical reagents for rubber creation, we make a lot of chemical reagents, but we also make diagnostic instruments for the healthcare and clinic industry, but also pharma industry buys products for their manufacturing processes. The diversity of the product is one end, but it reflects also the diversity of the markets that we sell to. And within Tosoh, we really have a really deep understanding of those markets. And I have to have the overview and extract the key levers for where can we support our customers to be more sustainable and how can we get all this information from our customers to communicate internally for product development, for service development, all this.”

This positions sustainability as an interface that links what global operations produce to what specific customer markets need, and we can examine this further through looking at the carbon version of this interface.

“If you look at the sustainability-related activities and efforts that our mother company in Japan does, this is really substantial. So there is a huge decarbonization plan that is backed up by 600 million EUR investments. In order to transform all the hard manufacturing sites, all the plants and all that, to emit less carbon and to use less power input. Of course, this translates to a lower carbon footprint of our products. Now, I'm using the carbon example, right? But as I said, for the circularity example, it exemplifies the processes that apply to other aspects such as sustainable materials or you name it. Now get back to the carbon thing. It translates to a lower carbon footprint of our products, which now we sell in Europe. And that lowers the carbon footprint of our customers in their scope three. Both actually scope 3 and scope 2 because they also need to buy the energy to make their processes running. And that's how I see our role, really. We sell those products and we enable our customers to become more sustainable themselves. And that's really the interesting part. And now my role is, where are the priorities? Where can we really make the biggest impact? Second is how do we communicate this to our business partners? Because they need to know and it needs to be de-complexified because otherwise it's really too much to take usually. And the challenge now is to remain price competitive. Because when people hear sustainability or sustainable products or whatever it is, then they think of higher prices. Now, that might look like it at first glance, but if you take the entire calculation of your process costs into account, then a product that uses less energy, a product that uses less water, a product that has a lower carbon footprint and that lowers your entire scope two and three carbon footprint, that will actually bring a lot of cost savings at the end.”

The parent-company investment Ute references is important to consider here. Her insight is that those plant-level reductions do not stay with the producer, but instead flow downstream into customers' Scope 2 and Scope 3 accounts. A lower-carbon input is, mechanically, a lower-carbon customer footprint.

That is where the "de-complexified" point takes center stage. A product's carbon advantage lacks value to a buyer who cannot see it in their own data. Translating a manufacturer's process improvements into the Scope 3 line items a customer actually reports is precisely the kind of task that platforms built to manage product- and supply-chain-level emissions (Footprint Intelligence among them) exist to handle. The harder a sustainability claim is to verify, the less commercial value it carries.

Ute's view on price is an interesting moment in the conversation, and she returns to it with a clear playbook for making the green transition less risky.

“To be profitable and to maintain your business operations as a company, we need to ensure a cash flow. So that's what I would advise to any company. Maintain your existing product portfolio as is and continue selling it because that's how you lay the basis for everything else. Now, you can, for example, start developing a green line. That has so many advantages. First of all, you can gather experience. How do I develop this? What is it actually about? How do I define a green line for my products? Maybe there is one aspect that's green for this very alternative product, but all the rest is as the existing products. And then I add features over time. And then I also gain experience by selling them, what sells well. What do customers actually appreciate or not? The price question is often oversimplified, I think. Yes, I do acknowledge price sensitivity is really at the forefront and that's what essentially determines the decision of the purchaser. But if you look at the entire process efficiency, then a product that has a higher price to start with might come in cheaper because the use of energy, the use of water, the use of other ingredients for the process are lowered through that product. Now, the beauty is to start that conversation with a customer. So you have a lot of internal education to do. You need to make your own sales people aware. How do I start that conversation? How do I identify the levers that are relevant for my customer beyond the price? And that requires really great customer intimacy.”

The advice here is practical: protect the cash-generating core, build a "green line" alongside it to gather real market feedback, and shift the buyer conversation from sticker price to total process cost. This discipline’s internal elements are significant: a process of equipping the sales team to argue total cost of ownership, not just unit price. Sustainability value that cannot be articulated commercially is often more difficult to realize.

3. Regulation, Burden, and Building a Culture That Lasts

Ute explains that her role was, in large part, created by regulation, and then reshaped by the rollback of it. Her account of the CSRD and the omnibus package is a clarified read on what reporting rules cost a small, complex business.

“As I said, my role was inspired a lot by the reporting requirements through the CSRD. And then we were kind of stopped in the middle of this run because the omnibus package arrived. It's not like it arrived all of a sudden, but still we saw it coming and then we saw, okay, there is probably going to be substantial changes in the scope and the companies having reporting requirements. So we said, okay, let's wait. What is actually required from us? Like you have to take into account that we are both a small company or small set of companies, I should say, and have a complex structure. I said there's three sites and there are seven business lines, and we are managing all this with 200 people. So this is a challenge to do a double materiality analysis, to manage all the data, to first of all understand which part is actually applicable to us. That's the main question usually. So that's why we decided, okay, so far this has been more of a burden and a workload rather than a positive and valuable output for us. And that's why we said, okay, we stop here, we wait, and then we see if we're still in scope of that regulation. If we're not, then we can actually focus on other stuff. And that's what happened. So we had invested a lot of time doing the double materiality analysis, and then we said, okay, let's stop, and then there's no need to do this anymore. Of course, there will be a voluntary report, but there are so many other regulations that push themselves into priority that this is the main driver. And I really am one of the people that is quite convinced that the CSRD is very useful, actually. But it's very stakeholder driven and creates a lot of burden for small companies.”

Here Ute’s judgement call was vindicated by the policy itself. The omnibus package raised the CSRD threshold to companies with more than 1,000 employees and over €450 million in net turnover. These changes were estimated to remove around 80% of previously in-scope companies. A roughly 200-person business is now almost certainly out of mandatory reporting scope. The strategic lesson Ute models is timing: when a regulation is visibly in flux, completing a full double materiality analysis on the old thresholds can mean concentrating effort into a deliverable that later disappears.

But the regulatory engine switching off raises the harder question: without a compliance mandate, what keeps sustainability alive inside a company? Ute's answer is one that centers culture and is anchored to value.

“It comes down to sustainability needing to bring value for the company. So as a sustainability manager, I'm an idealist. I really want to bring value to society and to the world, and I care. And I've come to understand that this also translates to value for the company. Because we, first of all, we provide, we make great products really, and those products are needed for this world. But how we can bring that value to society beyond what we already do and combine that with not doing any harm? That's really the tough question. And the value for the company is really the lever that makes people listen. Because not everybody is like me and not everybody needs to be like me, really be an idealist, but people need to listen and start thinking about this. How do you do this? I started doing internal workshops just to start a conversation internally. What do we actually talk about? And I think this needs to be done on a regular continuing basis. And then in parallel, try to provide information, how do we deliver this value? How can we maybe access other customers that used to be less interested in our products? And they might be more interested because we provide an extra value through sustainability. These are the kinds of things. And then once people have started thinking about it, they can actually come up with ideas. And then you also hear complaints about, oh, we've been doing this for a long time, but actually we shouldn't. So this is what they do. And then I end up not having all that much time to do all this. And that's actually the next step that I would like to implement at some point, to kind of create a mindset within people so they can actually take action themselves. It's not all on me. It's about a business culture that I want to establish.”

The closing ambition is the one most sustainability managers will recognise: distributing ownership so the function does not live or die with a single person. Workshops, value-framed business cases, and a steady flow of internal conversation are how Ute moves from being the sustainability bottleneck to building a culture where colleagues surface ideas and inefficiencies themselves.

When mandatory reporting recedes, the data discipline it requires should not. The double materiality analysis Ute paused still represents a clear map of where a company's impact and risk concentrate. Whether pursued for compliance, a voluntary report, or simply better decisions, doing that work on lean infrastructure rather than reconstructing it from spreadsheets each cycle is what keeps a 200-person team from drowning in it.

Ute's through-line is consistent from chemistry to culture: sustainability earns its seat when it is framed as a value. The industry she works in is, by her account, structurally central to the transition. The central question now is how to prove the enabler case. Who makes that case inside your company when the regulation is no longer making it for you?

 

Nora Hoffmann: Driving Decarbonisation with Technology and Leadership

In an increasingly regulated and climate-conscious business landscape, corporate sustainability teams are being asked to do more — and do it faster. Nora Hoffmann, Senior Manager for Corporate Sustainability at JLL Germany, is no stranger to this pressure. But as she explains, the key to effective climate action isn’t just better data or stronger policies. It’s a clear alignment between technology, leadership, and culture.

Digital Tools for Real-World Impact

At the core of JLL’s decarbonisation efforts is a deep commitment to energy efficiency — enabled by digital infrastructure. Nora explains how technology helps her team understand, model, and improve building performance:

“Technology is a very important part of the decarbonisation path, and as JLL is a technology company with looking on the real estate industry, we are using a lot of technologies to plan or set out our decarbonisation path. One of the opportunities, for instance, is energy efficiency — it's one of the key points or key measures that we're taking. We have a product that is called Smart Building Platform. What we're doing: we are connecting with the PMS, the building management system, and every meter that is available in a building so that there is great communication between different tools. We are sucking out every energy data that we are getting, and then we are creating a digitalisation twin. So we are creating different types of scenarios for the building to have a better decision — what we are going to do in terms of setups — and then, yes, you can derive a lot of energy savings out of it.”

This isn’t just a vision — it’s evidence-based. Buildings account for approximately 40% of global energy demand (IEA, World Energy Outlook 2023) and nearly 26% of energy-related CO₂ emissions (IEA, 2023). Systems incorporating digital twins and smart building technology have consistently delivered energy reductions of up to 30% (MDPI, Energy Informatics, 2023).

Nora’s approach is pragmatic: she starts with data, then identifies tangible solutions:

“It always depends what kind of buildings you have in front of you. I think that's the main point where you make the decision. You should make an analysis. But also, a very good efficiency is to implement heat pumps, for instance, to reduce heating. And of course, to change the energy to renewables. This is also something where you really can save a lot of carbon emissions. So there are many factors that you can use to reduce your carbon footprint — as I said, like with heat pumps, for instance, installing them, and renewable energies. You can also install them on site so that you get your new renewable energy, for instance. And yeah, there are also a lot of activities that you can do for the building itself, so it can save heating — for instance, HVAC systems that you implement. That would be the main recommendation I have.”

Framing Sustainability as a Business Driver

Nora is also clear that technology alone isn't enough. Leadership — and how sustainability is positioned internally — makes all the difference:

“I'm responsible for our corporate sustainability strategy. We have different experts that work with our clients, so they have the expert knowledge. As you mentioned, leadership is super, super important when it comes to sustainability — first of all from a human resource perspective, but also from a financial perspective. It's important in leadership that they take care of sustainability, because they are linked with a lot of business activities. They can give a hint where sustainability is very important. What I also think is very, very important to mention is that sustainability is a business case. If you implement the measurements I mentioned, with renewable energies or heat pumps and things like that, you can also save a lot of money. There are other activities or measurements that come out of sustainability. That's why I see it as a really big business case — and this is what our leadership is responsible for, to take it into the business and into our corporate strategy.”

Industry data reinforces her point: smart energy retrofits typically pay for themselves within 3–5 years, delivering annual savings between 10–50% (UK Green Building Council, 2023).

Nora’s insight also reinforces a broader shift: from compliance to competitiveness.

“I noticed very much that sustainability is also a key factor why a client chooses you above another. We are advising our clients on sustainability, but I think it's very, very important to walk the talk — not just point the finger and say you need to do this and this, but we can say, 'We did it already. We had success with it.' So, look, we have done this and this, and this would be our recommendation. This is something which I think is also a very important factor. Beyond that, I think also talent attraction is very, very important. Nowadays, society in general is more questioning companies, and if you can prove that you have a purpose and a sustainability agenda, you are very attractive — for the talents, but also for the clients.”

Culture and Scope 3: The Human Factor

For many organisations, Scope 3 remains the most elusive part of climate reporting. Nora doesn’t deny the challenge — but she offers concrete ways to get started:

“Depending on your strategy, also from a real estate perspective, at JLL we are looking for centralized offices that are easy to travel to with public transportation. We offer our employees a public transportation ticket that is 100% free, and they can use it in their private time. That is something very important. We also develop opportunities for people to use e-mobility, for instance, and incentivize bicycles so that people come to the office by bike, if that’s possible. There are other incentives you can use to encourage people to walk more to the office instead of using the car. Now, springtime or summertime is a very good time to offer this, so they get motivated to be fit. The benefit is that they’re fit, you’re saving carbon emissions, and you have healthy employees coming to the office. Also, I think it’s very important to have hybrid models where people can also work from home.”

Mobility is just one part of the equation. The real difficulty lies in how it’s tracked:

“Tracking Scope 3 is a challenge for everyone I talk to. I never heard someone that said, 'Oh, that was an easy thing to do.' Especially Scope 3 — it’s really one of the biggest challenges I have when I discuss with my peers. The challenge lies in not knowing how many times employees are coming to the office, if they come to the office, if they’re using public transportation, their bicycle, or their car. So that would be rather assumption-based. I know there are also different key metrics that you can use, and depending on which kind of methodology you're using. I think the big challenge is that many companies or organisations reporting on Scope 3 have different methodologies, different approaches, and different key metrics. That’s one of the biggest challenges.”

Rather than chase perfection, Nora focuses on engagement — and the bigger picture of building a consistent culture around sustainability:

“It's very, very important to educate people on the topic. And it's not one topic, so you need to constantly repeat your sustainability agenda and your intent or your purpose. What I always say is it's like the iPhone — it was also not invented in one day. It took a long time to develop, and I see it the same way with sustainability. Sustainability is something that is constantly developing, and as a company, you should show that you have leadership and the intention to live, act, and demonstrate sustainability.”

This internal alignment also plays out globally — in diverse, often complex cultural contexts. Nora’s experience leading strategy across JLL’s regions has made her particularly attuned to this:

“We have the J10 approach where we have frequent meetings. We have the leaders for every country and then we exchange, and I really enjoy this exchange. I never had the experience that it was something that’s not working — you always get insight into what’s going on in different countries, how they approach things from a sustainability perspective, but also a cultural understanding. For example, in Europe, we have a different understanding of plastic than people in the US, where using plastic glasses is very popular. They don’t have this kind of notion that plastic might be harmful — it’s just a different notion of how things are approached. That’s a very nice challenge in such a big company, to bring alignment. There are also different maturity levels. I implemented our global strategy in our EMEA countries, and when I did that back in 2020, the Netherlands was very mature when it came to renewable energy — the infrastructure was already there because the government supported it. In South Africa, there is no infrastructure. You can’t tell someone to buy an electric car if there’s nowhere to plug it in. We have this kind of exchange now on a monthly basis, and I enjoy them very much because I get a great overview of different countries’ notions and approaches. That makes it really rich to work in such a global organisation.”

The views and opinions expressed in this blog are solely those of the author and do not reflect the official policy or position of any company.

Viktoriia Gurova: Turning Transparency into Real Sustainability Impact

As sustainability continues to evolve from a peripheral corporate issue to a fundamental driver of business strategy, sustainability managers must adapt rapidly. Viktoriia Gurova, a seasoned professional in sustainability management and auditing, provides valuable insights for leaders looking to navigate the complexities of modern environmental governance and corporate sustainability effectively.

Practicality in Sustainability Implementation and Reporting

According to Viktoriia, practicality is crucial when incorporating sustainability frameworks such as the Corporate Sustainability Reporting Directive (CSRD):

“To stay practical while incorporating CSRD requirements, remember it's not just about ticking boxes. Instead, see it as an opportunity to highlight your company’s positive impact and clearly demonstrate the good your company brings to society and the wider world. Every company creates a two-way impact: it affects the environment and society, and these external factors, in turn, affect the company. I recommend beginning by selecting KPIs that are the most relevant drivers for your specific business—each metric should genuinely move the needle. To keep the process realistic and manageable, break your sustainability strategy into phases with clear, achievable goals and smaller, actionable steps.”

Her emphasis on clear, measurable KPIs resonates strongly with research indicating that clearly defined sustainability goals significantly enhance corporate environmental performance. Recent data shows that companies explicitly aligning their KPIs to science-based targets have a 24% higher chance of successfully achieving their sustainability objectives compared to those with vaguely defined or unclear targets (Science Based Targets Initiative, 2022).

Transparency and humility, as Viktoriia further highlights, are equally essential:

“Transparency means we are honest about where we are and where we are going. If we haven’t hit certain targets, say it. Share the challenges. Just telling the good stuff sounds nice. But people catch on quickly if the story isn't complete. We are in the age of 'trust but verify.' We should save ourselves the trouble and be clear from the start. Humility is also an important part. Our journey to sustainability is just that—a journey. Let's acknowledge that while we work hard on electrifying machinery or reducing emissions, it's a long haul, especially in industries like transportation.”

This emphasis on honesty aligns with rising stakeholder expectations—recent studies show investor scrutiny of ESG disclosures continues to increase each year, with growing demand for transparency on both successes and setbacks.

Avoiding Greenwashing and Embracing Genuine Impact

Viktoriia underscores the ongoing risks of greenwashing in corporate sustainability:

“Greenwashing is a significant part of this conversation. Even large companies sometimes choose not to disclose certain information. For example, how can a global company employing over 2,000 people conclude that their workforce isn't a material topic? Either they're aiming for attractive reporting, deliberately ignoring obvious issues, or their Double Materiality Assessment (DMA) was structured in a way that overlooks genuinely important issues. As an organization, honesty is crucial—you must acknowledge even the uncomfortable truths and tackle real problems, such as workplace conditions or health and safety concerns. From an audit perspective, my goal is to identify the actual impact. When conducting audits, you quickly recognize what recommendations need to be made.”

This point resonates with recent research indicating that nearly 42% of green claims by corporations were either exaggerated, false, or deceptive, underlining the urgency to ensure accuracy and honesty in sustainability reporting (European Commission Screening of Websites for ‘Greenwashing’, 2021).

Building on her emphasis on transparency, Viktoriia also highlights the importance of candid dialogue with external auditors:

“External auditors don't always have a deep understanding of the core business operations. Their recommendations can sometimes be vague or challenging to interpret practically. That's why it's important to have a clear rationale and a strong, well-supported position. You should feel confident enough to say, ‘No, we won’t implement that recommendation because it isn't feasible, practical, or doesn't add value.’ It's essential to engage in constructive discussions rather than simply accepting decisions imposed from above. It's perfectly acceptable to disagree openly—what's not acceptable is hiding your concerns or objections. We frequently engage in dialogue with external auditors, challenging their suggestions and clearly explaining our viewpoint.”

Research reinforces her view, showing effective corporate sustainability governance involves active negotiation and collaboration with external stakeholders, enhancing credibility and accuracy in sustainability disclosures (McKinsey Sustainability Report, 2023).

Strategic Collaboration and Innovation for Decarbonisation

Viktoriia offers compelling insight into industry-specific sustainability challenges, particularly around decarbonisation and electrification initiatives:

“Electrification in heavy machinery is on the rise, but it still requires substantial support to fully mature. Our approach to investing in electrification revolves around three key areas: infrastructure, innovation, and strategic partnerships. Without suitable charging infrastructure, electric equipment simply can’t function effectively. Unlike diesel machinery, electrification requires careful planning to ensure operations are clean, quiet, and cost-effective. Real-world examples have demonstrated that electrification is less expensive than initially anticipated, bringing additional benefits such as reduced noise pollution, waste, and emissions. Moreover, clients greatly appreciate the significant reduction in their Scope 3 emissions.” Her point is supported by recent findings: electrification can reduce emissions by up to 85% compared to diesel in certain applications (World Resources Institute, 2023).

Emphasising collaborative innovation, Viktoriia highlights a critical shift from competition to cooperation in sustainability practices:

“In sustainability, innovation thrives more on collaboration than competition. Companies traditionally view innovation as something providing competitive advantage—preferably being the only one adopting a certain practice. However, sustainability is fundamentally different: the more companies that adopt a particular solution, the more scalable and widely applicable it becomes. Achieving meaningful sustainability impact requires industry-wide cooperation rather than isolated efforts. It’s essentially co-innovation rather than competitive innovation, which demands a significant mindset shift since businesses are usually geared towards competition. Sometimes, this means you might even have to collaborate with your competitors, as only through joint efforts can industry-wide standards truly evolve.”

By combining strategic collaboration, clear KPIs, and a commitment to transparency, sustainability managers—especially those working close to operations like Viktoriia – can deeply embed sustainability into business performance and decision-making. Viktoriia Gurova’s insights underscore the importance of aligning business strategy with sustainability goals – strategically embedding sustainability within organizational structures, fostering accountability, and driving real impact.

The views and opinions expressed in this blog are solely those of the author and do not reflect the official policy or position of any company.

Pauline Bouquart: Turning Compliance into Competitive Advantage

At a time when corporate sustainability is being redefined by regulation, stakeholder pressure, and resource instability, few voices are as clear and practical as Pauline Bouquart, Manager in the Climate Change and Sustainability Services department at EY in Brussels. Working at the forefront of Europe’s climate and sustainability agenda, Pauline has become a trusted advisor to companies navigating the evolving ESG landscape. In this interview, Pauline shares concrete lessons from her work that show how sustainability managers can lead with clarity and conviction. From CSRD compliance to circular economy strategies and stakeholder engagement, her perspective is a roadmap for building both reports and resilience.

CSRD: A Mandate for Impact, Not Just Metrics

Pauline doesn’t mince words when it comes to CSRD. For her, it’s more than a framework, it’s a call to action for companies to integrate sustainability at the core of their strategy and make their business future-proof. “While the new Omnibus proposal may reduce the number of companies required to report, it’s crucial to remember that the ambition behind CSRD is to go beyond reporting—to foster long-term value creation and promote truly sustainable business performance. Reporting without concrete and sustained actions will appear as greenwashing, and this could result in serious consequences. According to the Green Claims Directive, the EU can fine up to 4% annual turnover (in the country(ies) concerned by the claim) for infringing enforced rules on claims substantiation. Concretely, it means that a company stating vague, misleading or unfounded information about their products’ environmental characteristics can be fined.” 

Her insight hits a critical pain point: the widening gap between reporting and reality. With 63% of consumers skeptical about sustainability claims (Journal of Business Ethics, 2022), Pauline underscores that compliance alone isn’t enough. Without measurable, verifiable action, the reputational risks are just as real as the regulatory ones.

Building Circularity from the Ground Up

Pauline’s expertise in environment and circular systems management is rooted in both practice and policy. Her background in advising on packaging, decarbonization, and extended producer responsibility allows her to guide companies beyond surface-level sustainability. “Companies must implement resilient and long-term sustainable action plans. This goes far beyond just meeting compliance requirements. Companies that proactively plan and act will be able to anticipate risks, seize emerging opportunities, and systematically reduce their negative impacts.” Her message is timely. With nearly half of executives reporting annual supply chain disruptions (McKinsey, 2023), Pauline urges sustainability teams to understand where their dependencies lie, especially in sourcing critical materials, and how to switch to more circular materials. In such globalized value chains, common efforts within an industry can help in achieving economies of scale. 

She points to France’s eco-design requirements for packaging as a case where most companies chose a collective approach. “We always co-create with our clients,” she says, highlighting her belief that internal teams hold the keys to adapting operations. It’s this grounded, partnership-based mindset that sets Pauline’s approach apart.

Clarity Through Materiality, Not Just Ambition

If there’s one concept Pauline returns to repeatedly, it’s the importance of knowing your impacts, risks and opportunities, especially in terms of circular economy. She views double materiality, now required under CSRD, not as a burden, but as a strategic starting point to identify areas where a company can be less resource dependent. “The double materiality assessment required by the CSRD helps companies to identify both how they impact the environment (inside-out) and how environmental and social trends affect their financial performance (outside-in).”

Her approach encourages companies to look beyond isolated metrics and take a long-term view. This includes setting realistic targets, engaging stakeholders, and building internal capacity to lead the change. “Companies must set KPIs across short, medium, and long-term horizons, and monitor their progress continuously. And just as important: communicate.”

Supporting data confirms her point. According to Harvard Business Review (2021), companies that align financial and non-financial metrics are more likely to achieve long-term profitability. Pauline connects this with customer trust, especially in consumer-facing sectors: “Consumers need time to understand new systems and adapt their behaviors accordingly. That takes time and communication.”

From this perspective, sustainability isn’t just about tracking emissions. It’s about educating customers, aligning internal teams, and embedding a mindset of continuous improvement.

Leading with Depth and Direction

Pauline Bouquart doesn’t just talk about sustainability, she builds it, one organization at a time. Through her work at EY, she’s helping businesses embrace sustainability not as an obligation, but as an opportunity for transformation. Whether guiding a materiality assessment, advising on collective circularity initiatives, or helping clients reduce their environmental impact, Pauline brings clarity to complexity.

Her advice is clear: start with what you know, engage the right people, use the tools where they help, but most of all, build with intention. “The ambition behind CSRD is to go beyond reporting, to foster long-term value creation and promote truly sustainable business performance.” Sustainability managers looking to move from reactive to future-ready would do well to follow Pauline’s lead.

The views and opinions expressed in this blog are solely those of the author and do not reflect the official policy or position of any company.

Building Sustainable Operations: Louise Wennberg on Overcoming Challenges and Driving Change.

The digital and fashion industries are at a critical crossroads, with sustainability becoming an increasingly vital focus. Louise Wennberg, a Sustainability Consultant, offers valuable insights into the challenges and opportunities these sectors face in integrating sustainability into their operations. Drawing from her extensive experience, Louise sheds light on the evolving landscape of corporate sustainability and the strategies sustainability managers need to adopt to drive meaningful change. Her expertise is essential for anyone navigating the complexities of sustainability within these dynamic industries.

Bridging the Gap Between Sustainability Strategy and Execution

In her extensive experience, Louise has seen the critical gap between sustainability strategies and their actual execution. “I’ve worked in companies with no sustainability strategy, no KPIs, and no follow-up,” she recalls. In some instances, employees were unaware of the sustainability department's role or responsibilities. This gap highlights a broader challenge that sustainability managers face: even when tools and frameworks are in place, action is not guaranteed. As Louise emphasizes, “You still need people to drive change,” and this change requires more than just setting ambitious goals.

A major component of addressing this challenge is understanding how people actually work. Louise notes, “It’s not just about setting goals—it’s about understanding how people actually work and adapting sustainability efforts to fit into those existing workflows.” This insight speaks to the importance of making sustainability an integral part of daily operations, rather than an external or additional task. Behavioral shifts, cross-team collaboration, and integrating sustainability into everyday business operations are essential.

Louise’s perspective aligns with recent findings from Deutsche Bank (2024). Investors report significant gaps in their knowledge and application of sustainability strategies. For instance, only 3% of investors classify themselves as advanced ESG investors, with 47% admitting they lack a clear ESG portfolio objective. This lack of clarity and knowledge reflects the broader challenge of effectively implementing sustainability strategies. Sustainability managers can help bridge this gap by ensuring the right processes are in place to drive execution and by integrating solutions like intelligent sustainability software to streamline decision-making and reporting.

When companies fail to adapt sustainability strategies into their existing workflows, it can hinder progress. Ensuring that operational teams understand how sustainability fits into their roles is key. Louise’s emphasis on behavioral shifts within the team echoes the need for solutions that make sustainability manageable and actionable within every department. Sustainable business solutions need to be seen not as additional tasks, but as opportunities to align with existing workflows for maximum impact.

Overcoming Supply Chain Challenges with Practical Solutions

Louise also emphasizes the difficulty of engaging suppliers effectively, highlighting the need for better communication and follow-through. “I’ve been in meetings where teams say, ‘We tried to source this fabric, but the supplier said no.’” When she asked about the timing of these attempts, it often turned out that suppliers had not been pursued rigorously enough. “There’s also the challenge of gathering reliable data from suppliers. If they don’t speak English, it’s no surprise they’re not responding to your fifth email,” she adds.

This insight underscores a key challenge in sustainability management: the need for reliable data across the supply chain. Sustainability managers must not only push for changes but ensure that accurate data—especially around Scope 3 emissions—is readily available and acted upon. Without this data, it becomes impossible to assess the full impact of a company’s operations, let alone make the necessary improvements. For Louise, practical solutions lie in decarbonization software and carbon footprint software, which can facilitate data collection, provide insights, and help measure emissions at every stage of the supply chain.

Scope 3 emissions account for 75% of a company's total greenhouse gas emissions, with certain sectors, such as financial services, seeing Scope 3 emissions make up nearly 100% of their total emissions (CDP, 2022). Furthermore, CDP reports that Scope 3 emissions from energy-intensive industries are growing faster than Scope 1 and 2 emissions. This highlights the urgent need for businesses to prioritize the reduction of Scope 3 emissions, especially within their supply chains, to make significant strides in sustainability. Tools like Scope 3 software and automated sustainability reporting play a crucial role in streamlining the collection and reporting of emissions data, helping companies ensure their efforts meet regulatory requirements and enabling more informed decisions regarding supplier relationships.

When businesses fail to address the data challenges in their supply chains, they risk falling behind, both in terms of regulatory compliance and long-term sustainability goals. By incorporating CO2 reduction platforms into their operations, sustainability managers can take a proactive approach to addressing emissions and ensuring that they are meeting their environmental goals.

Facilitating Change with Effective Communication and Internal Collaboration

Louise is also a strong advocate for tailoring sustainability messaging to different stakeholders within an organization. “Sustainability communication isn’t just about using the right terminology—it’s about understanding company culture,” she notes. The language used to discuss sustainability must resonate with each department’s specific priorities and needs. For example, a CEO will want to understand how sustainability aligns with the company’s long-term strategy, while a CFO will need to see hard numbers justifying investments in sustainability initiatives. Similarly, teams in procurement, operations, and design all require a more specific understanding of how sustainability affects their day-to-day decisions.

By using corporate sustainability software, sustainability managers can more effectively communicate the data and benefits of sustainability initiatives in a way that resonates with each department. Louise stresses, “You can’t just issue a directive and expect immediate results unless there’s a strong mandate.” She emphasizes that real change happens when operational teams—engineers, designers, and logistics managers—are given the tools and support to make sustainability a natural part of their work. Sustainability software can facilitate this change by providing data-driven insights and recommendations that align with the specific needs of each department.

Recent research by PwC found that 49% of investors are considering disinvestment if companies don’t take sufficient sustainability measures (PwC Sustainability Communication). This underscores the growing pressure for businesses to integrate sustainable business solutions into their operations or risk losing investor confidence. As Louise points out, “Sustainability managers don’t drive impact alone—it’s the operational teams that make real changes happen.” The role of the sustainability manager is to facilitate change, not dictate it, and tools like SBTi software solutions can support this facilitation by empowering teams with data that drives informed decision-making.

Conclusion

Through Louise’s insights, it becomes clear that sustainability managers must go beyond merely setting goals and frameworks—they must ensure these strategies are executed effectively, adapted to existing workflows, and backed by reliable data. The role of intelligent sustainability software, automated sustainability reporting, and decarbonization software is critical in facilitating these efforts, but these tools only work when the right internal collaboration and communication are in place.

Louise’s perspective on sustainability emphasizes the importance of internal collaboration and empowerment, showing that change is most effective when it’s integrated into the fabric of day-to-day business operations. By leveraging technology to streamline data collection and reporting, and by fostering communication across departments, sustainability managers can ensure their organizations are not just meeting regulatory demands but are also making meaningful progress towards their sustainability goals.

As Louise aptly concludes, “Legislation will be the key driver of sustainability transformation,” and companies must act now to stay ahead of the curve, avoid the risks of falling behind, and embrace the opportunities that sustainability offers.

The views and opinions expressed in this blog are solely those of the author and do not reflect the official policy or position of any company.

Gunter Schichl: Insights on Data-driven Decarbonization

In today’s rapidly evolving corporate sustainability landscape, leaders like Gunter Schichl are pushing the boundaries of environmental management. As sustainability managers strive to meet ambitious decarbonization goals, Gunter’s insights provide a blueprint for integrating intelligent sustainability software, automated sustainability reporting, and carbon footprint tracking into their strategies. This article explores Gunter's approach to overcoming the challenges of decarbonization, the critical role of data, and the importance of starting even when perfection is out of reach.

The Crucial Role of Data in Decarbonization

As companies around the globe work to decarbonize their operations, the accuracy and precision of the data they collect can make or break their efforts. Without the right data, businesses are flying blind, unable to effectively measure their impact or the progress they’re making. In a world increasingly defined by environmental accountability, robust data collection is no longer optional—it’s a necessity. Gunter Schichl emphasizes that precise and granular data is the cornerstone of effective decarbonization:

 "The most important aspect of steering decarbonization efforts is data, as surprising as it might sound. We need to transition from spend-based to consumption-based data, manage the granularity, and control the effort involved. Without accurate, granular, and timely data, it’s impossible to effectively measure the impact of our decarbonization initiatives. Currently, eighty percent of my effort is focused on getting the data right because it’s the biggest challenge we face."

The significance of robust data management is underscored by a recent survey conducted by ENGIE Impact, which found that only 3% of business leaders across 21 sectors and 23 countries reported having a single source of truth for their sustainability data. This highlights the considerable difficulties companies face in collecting and managing accurate data crucial for decarbonization efforts. Furthermore, while two-thirds of companies use digital tools to manage their operational emissions (Scope 1 and 2), only about one-third (35%) invest in technology to track Scope 3 emissions. This disparity underscores the necessity of comprehensive data collection across all emission scopes for effective decarbonization strategies, reinforcing Gunter's focus on moving from traditional spend-based approaches to more precise consumption-based models.

As Gunter points out:

"We are in the process of setting up the tooling to allow us to capture data more accurately and steer our decarbonization efforts. Footprint Intelligence is helping us establish a common model based on consumption, not spend-based." 

Navigating the Complexities of Carbon Measurement

Achieving consistency in carbon measurement is one of the toughest challenges in the realm of sustainability. Despite growing awareness, a recent survey revealed that only 10% of companies are comprehensively measuring their emissions across Scope 1, 2, and 3. Alarmingly, respondents estimate a 25% to 30% average error rate in their emissions measurements (CO2 AI by BCG Carbon Emissions Survey 2022).

These statistics underscore a significant problem: the widespread inconsistencies in how companies approach carbon measurement, particularly across different scopes and infrastructures. This lack of uniformity can lead to major discrepancies in reported data, which ultimately hinders the ability to make informed and effective sustainability decisions. As Gunter Schichl points out, the diversity of IT infrastructures further exacerbates these challenges:

"The complexity of carbon measurement arises from the different hosting models for IT infrastructure—whether on-premises, cloud, or SaaS and PaaS providers. We aim to create a comparable carbon model based on actual consumption, rather than spend, to ensure consistency. Without this, we’re comparing apples and oranges, making it difficult to make informed decisions."

These inconsistencies, as highlighted by Gunter, directly impact a company’s ability to accurately assess and reduce its carbon footprint. The challenge isn't merely about gathering data, but about ensuring that the data is precise, comparable, and actionable across all platforms and emission scopes. Gunter advocates for the adoption of consumption-based models, which offer greater accuracy and a clearer understanding of the real environmental impact. This precision is increasingly crucial as organizations face mounting pressure from stakeholders to report their carbon emissions transparently and to develop effective decarbonization strategies based on reliable data.

The Power of Starting Now and Leveraging Innovation

Despite the complexities, Gunter Schichl strongly advocates for immediate action, even if the perfect system is not yet in place. His advice is simple: just start, even if you’re not yet equipped with a consistent model or if you need to begin with spend-based data. The cultural shift required for decarbonization takes time, and it’s important to build momentum by establishing a base of supporters within the company. It's not about achieving perfection from the outset; it’s about integrating decarbonization efforts into the corporate strategy so that it becomes a long-term commitment rather than just a voluntary initiative.

This advice reflects a broader truth: sustainability is as much about organizational change as it is about technology and data. Building a decarbonization framework requires buy-in from all levels of the company, and that kind of cultural shift doesn’t happen overnight. Starting with imperfect data or incomplete tools isn’t a failure—it’s a necessary first step. By embedding sustainability into the core business model, companies can ensure that their decarbonization efforts are grounded in a foundation that evolves over time. This fosters a culture where sustainability goals are continually refined, adapting to emerging technologies and methodologies as they become available.

Gunter also emphasizes the significant role that smaller, more innovative players have in driving sustainability forward. He explains, “Don’t underestimate the small and innovative players. As you know, especially with CSRD, the big names also give a lot of surety for their purchasing. But no, I think smaller companies in this respect have the agility and the delivery, but also the quality of delivery that you need right now... I think we analyzed more than a dozen players, Footprint Intelligence came out victorious. So I think that's the best testimony I can give today.”

This highlights how agile sustainability platforms can make a meaningful impact, especially when larger, more traditional solutions may lack the flexibility required to meet the unique challenges of decarbonization.

This perspective is particularly relevant when considering the global economic role of SMEs (Small and Medium Enterprises). According to the World Bank, SMEs account for about 90% of businesses and more than 50% of employment worldwide. Not only are these enterprises the backbone of the global economy, but they are also essential players in the sustainability landscape. Their ability to quickly adopt innovative approaches and respond to market demands makes them vital contributors to global decarbonization efforts. By leveraging their inherent strengths, SMEs can spearhead the implementation of sustainable business solutions at a pace and efficiency that larger corporations may struggle to achieve.

Conclusion: Taking Action in Steering Decarbonization Efforts

Gunter Schichl’s insights provide a powerful roadmap for sustainability managers navigating the complex terrain of decarbonization. By prioritizing data accuracy, embracing the complexity of carbon measurement, and taking immediate action, even with imperfect tools, sustainability leaders can drive significant progress.

By establishing common, consumption-based carbon models and leveraging innovative solutions, businesses are better equipped to steer their decarbonization efforts effectively. Gunter’s approach reminds us that sustainability is not just about technological tools—it’s about creating a culture of sustainability embedded in the corporate strategy, supported by reliable data and innovative partners.

As Gunter emphasizes, "It’s crucial to start, even if the data isn’t perfect.” The journey toward decarbonization may be complex, but with the right tools and strategies, it's a journey that every company can—and must—embark on.

The views and opinions expressed in this blog are solely those of the author and do not reflect the official policy or position of any company.

Rainer Karcher: The Future of Corporate Sustainability Divisions and Leadership

With decades of experience spanning IT transformation and sustainability leadership, Rainer has guided organizations like Siemens and Allianz Technology, and now leads his own venture, Heartprint GmbH, focusing on the intersection of digitalization and sustainability. In this article, he shares his vision for the future of sustainability divisions, the evolving role of sustainability managers, and how sustainability represents growth and resilience for businesses.

Shifting Focus: Future Readiness and Communication in Sustainability Leadership 

Speaking on sustainability leadership, Rainer touched on the importance of tailoring language choice and communication style.

“Know the knowledge and interest levels, and the priorities of people you are talking to,” he emphasized. “Use explanations that others will understand well and try not to use acronyms too much.”

In his own company, Rainer has found that using the terms “future readiness and resilience” allows for a more holistic approach to sustainability issues. “It highlights that while you're doing something for climate protection, but you're reducing costs as well. You're increasing your economical aspects and your efficiency.” 

Rainer’s leadership approach emphasizes the dual benefit of sustainability on a large-scale: businesses can protect the environment while also enhancing their bottom line. For example, reducing energy consumption not only saves carbon emissions but also significantly lowers operational costs, a crucial factor for businesses navigating economic challenges.

The scientific data supports this idea. According to a 2023 McKinsey report, energy efficiency improvements in commercial sectors could reduce global energy demand by 20% by 2030, saving companies an estimated $600 billion annually. Such savings are especially critical for small and medium-sized businesses (SMBs), which Rainer identifies as foundational to Europe’s economy. He advises these companies to “keep pushing and get resilient” despite current political and regulatory uncertainty surrounding sustainability initiatives.

The Role of Automation and Collaboration in Sustainability

Collaboration between the areas of IT divisions and sustainability teams is essential to drive change. “IT divisions hold the keys to data and processes, while sustainability teams understand regulatory needs,” Rainer explains. Noting how many organizations remain trapped in manual systems, relying heavily on spreadsheets and unstructured data, Rainer highlights the pressing need to automate sustainability processes to drive collaboration. 

“Automate as much as you can. Everything related to reporting, regulatory requirements, legal obligations, and compliance should be automated and digitalized wherever possible,” Rainer advises. Automation and digitalization, according to him, free up resources and allow sustainability managers to focus on impactful activities such as influencing product development and operational innovation. This aligns with findings from a 2022 Deloitte study, which showed that companies leveraging digital tools for sustainability reporting reduce administrative costs by up to 30% and achieve more accurate compliance with regulations like the Corporate Sustainability Reporting Directive (CSRD).

Rainer’s advocacy for automation underscores a broader theme: sustainability divisions should no longer operate as isolated units. “Sustainability is moving from being a separate division into a core aspect of everyone's role, akin to how cybersecurity evolved,” he notes. Just as cybersecurity became integrated into daily operations over the past two decades, sustainability must now permeate all organizational layers—from HR to finance to IT.

Growth Opportunities in Sustainability and the Power of Collaborative Spirit

Looking to the future, Rainer is a strong advocate for the double materiality assessment, which he describes as “not just about compliance.” This framework pushes companies to assess their impact on the environment and society while also examining how external factors influence their operations. “It encourages companies to see sustainability as an opportunity for growth, innovation, and creating value for others while addressing environmental and societal challenges”, he emphasizes.

Global trends further underscore the business case for sustainability. Rainer points out that countries like China and India are not only integrating sustainability for environmental reasons but also leveraging it for economic growth. In 2022, China implemented sustainability measures aligned with European standards, recognizing that these efforts drive innovation and open new markets. Similarly, India has seen a surge in collaborations between local businesses and international partners focused on sustainability innovation.

Rainer is optimistic because of the collaborative spirit he has witnessed within sustainability, he’s excited about the evolution of sustainability from an environmental concern to a central business strategy. “People working in sustainability divisions understand that this is a team sport. We’re collaborating, sharing, and creating momentum together,” he said.  

This collaborative approach, he believes, will continue to drive the rapid evolution of sustainability from an environmental concern to a central business strategy.

“We all have the same idea and the same passion. We don't do what we do just for the success of the company. We do it for the better good and for the bigger target…the amount of people collaborating, working together, joining forces, is massively increasing, and that exactly is what makes me optimistic.”

Conclusion: Shaping a Sustainable Tomorrow with Innovation

Rainer Karcher’s insights paint a clear picture of the future of sustainability divisions in companies and the broader global sustainability push. By focusing on future readiness and resilience, automating processes, and embracing collaboration, businesses can turn sustainability into a driver of innovation and economic growth. His advice to emerging sustainability leaders is simple:

“You don’t have to know everything; you just need to know who knows it and where it’s written.”

As the sustainability landscape evolves, Rainer’s experience reminds us that the journey is not just about compliance on the day-to-day but about creating a better, more resilient future for businesses and the planet alike.

The views and opinions expressed in this blog are solely those of the author and do not reflect the official policy or position of any company.

Jelle van Wezep: Building Corporate Sustainability

Building sustainability from the ground up is a significant challenge faced by many sustainability managers today. Jelle van Wezep, a sustainability officer, shared his experiences and insights on navigating these challenges during an interview. He highlighted the necessity of starting with a strong foundation: "Your current challenge is essentially building up sustainability from the ground up. Not having a large team or extensive infrastructure means focusing on setting the foundation. This involves overcoming initial challenges, such as identifying key areas of impact, creating actionable plans, and aligning these with organizational goals. It’s a common challenge for many sustainability managers starting out, as they often work without a clear roadmap but need to implement significant, meaningful changes."

Building Sustainability From the Ground Up: Insights from Jelle van Wezep

Jelle emphasized the importance of creating a holistic understanding of what’s already in place and what is needed to move forward. "For sustainability managers entering an organization, the first steps include understanding existing data, processes, and structures. This means identifying what’s already in place, such as past carbon footprint data, and determining what is needed to move forward. Visiting different locations and engaging with teams early on can help overcome delays and provide a clearer picture of organizational challenges and opportunities."

Materiality assessments are increasingly relevant, with frameworks like the Corporate Sustainability Reporting Directive (CSRD) introduced by the European Commission in 2022, which requires organizations to disclose their environmental, social, and governance (ESG) impacts (European Commission, 2022). Intelligent sustainability software can assist in gathering and analyzing data for these assessments, enabling organizations to identify and focus on their most material issues effectively.

The Role of Collaboration and Materiality Analysis

One of Jelle’s standout insights is his emphasis on collaboration across departments. He stated: "Sustainability is such a broad topic that it cannot be achieved by one person or department alone. To create a comprehensive strategy, it’s essential to work closely with teams across the organization, including finance, management, IT, and even factory staff. Understanding their roles and expertise allows for gathering the necessary information to establish a full overview. Early engagement with these stakeholders is critical to avoid delays and ensure alignment with sustainability goals."

Jelle also pointed out that "A key challenge is raising awareness about the importance of sustainability among all employees. As more people understand the regulatory and environmental needs, they are more willing to collaborate and provide their expertise. Building this awareness fosters a culture of sustainability, where every department contributes to the goals. This shared responsibility is essential for achieving meaningful progress."

Jelle’s experience with materiality analysis further underscores the importance of collaboration: "The materiality analysis is a crucial step in identifying what sustainability topics are most important to the organization and its stakeholders. This involves discussions with employees, management, suppliers, and customers to prioritize areas such as climate impact and waste. For example, while water use may not be significant in some industries, climate and waste issues might take precedence. A structured materiality assessment helps in setting realistic targets and aligning sustainability efforts."

Driving Long-Term Impact and Overcoming Challenges

Jelle’s reflections also touch on balancing immediate and long-term goals. "Sustainability managers often need to juggle immediate actions, such as preparing sustainability reports, with the longer-term goal of embedding sustainability into the organizational culture. This includes building a roadmap for achieving targets, collaborating with teams across the organization, and engaging suppliers and customers to align their practices with sustainability goals. It’s a balance of planning and execution that requires strategic vision."

This dual focus is crucial, as highlighted by the International Energy Agency (IEA) in its 2022 report. The report emphasizes that achieving net-zero goals requires both immediate reductions in carbon emissions and systemic, long-term changes (International Energy Agency, 2022). Automated sustainability reporting tools can help organizations maintain transparency while freeing up resources to focus on strategic planning.

Finally, Jelle noted the importance of persistence and motivation in the face of challenges: "For sustainability managers, raising awareness is key. Building trust and showing empathy towards the challenges faced by different teams creates a collaborative environment where everyone is motivated to contribute to shared goals. Sustainability management is a unique role that requires acting as a facilitator and strategist, bridging gaps between departments to drive initiatives forward. By building trust and showing empathy towards the challenges faced by different teams, sustainability managers can create a collaborative environment where everyone is motivated to contribute to shared goals."

Jelle’s insights provide invaluable lessons for sustainability managers navigating the complexities of environmental management. His emphasis on collaboration, strategic planning, and persistence underscores the multifaceted nature of the role and highlights the potential for impactful change through intelligent sustainability practices. For organizations looking to adopt decarbonization software or other corporate sustainability software solutions, Jelle’s experiences serve as a practical guide to achieving both immediate and long-term objectives.

The views and opinions expressed in this blog are solely those of the author and do not reflect the official policy or position of any company.

Albertomaria Franzoni on Sustainable Supply Chains

In the rapidly evolving landscape of corporate sustainability, understanding and addressing challenges while leveraging opportunities is crucial for success. Albertomaria Franzoni, the Head of Sustainable Supply Chain, shared his profound insights into the challenges and opportunities within the food retail sector. His expertise, drawn from years of experience in mid-sized startups and consulting roles, offers invaluable lessons for sustainability managers navigating today’s complex environmental landscape.

The Challenges: Data, Clarity, and Global Consensus

Albertomaria highlights a significant issue in sustainability: the lack of clear problem definitions. “There is a lot of talk around sustainability. I think that one of the issues is pretty much the grey zone. You know there is a lot of talking but even though you have the UN or other important entities that are driving, leading the talk in sustainability, there are still scientists from other areas or independent scientists promoting different theories. So I think that in general taking one side looks more related to interest, still business interest rather than maybe Earth interest.”

Albertomaria argues for global agreement, stating, “We must have more agreement overall, not just because the EU is saying something while China is not. There must be more global consensus.” This highlights the necessity of international collaboration.

Albertomaria also addresses the problem of unreliable data: “Second, there is a problem with data. And here is like my engineering approach saying that as an engineer, I have to clarify and have clear which are the data, which are the numbers, which are the instruments, the algorithm that we have to use. And I believe that we are still well behind with having algorithms shared among different industries.” A 2023 McKinsey report found that 60% of companies struggle with inconsistent carbon footprint data, emphasizing the need for accurate data as a foundation for intelligent sustainability software and automated sustainability reporting.

Opportunities in Food Retail Supply Chains

Food retail presents unique opportunities for sustainability managers. According to Albertomaria, “In food retail, it’s very easy to work on. Reducing the intermediation within the supply chain, at the end, what you get is cost-saving opportunities. So, you're realizing that cost and CO2 emission can go together, and that can be a huge opportunity for sustainability managers.”

Research published in the Journal of Cleaner Production in 2022 shows that direct farm-to-retail models can cut emissions by up to 25% while reducing supply chain costs by 15%, supporting this alignment between cost-saving and CO2 reduction. Tools like carbon footprint software and Scope 3 software can help quantify these benefits, enabling actionable insights.

Transparency, Albertomaria argues, is another key opportunity: “Transparency itself is a value that is not very well identified generally in the food retail sector. Regarding how to make it more transparent, first is about tracing. You have to clarify where the ingredients, where the products you buy, you purchase, come from.” A 2023 Deloitte study reveals that 70% of consumers prefer brands that disclose their sourcing practices, underscoring how transparency not only enhances trust but also strengthens market positioning.

The Future: Standardization and Innovative Tools

Albertomaria’s vision for the future includes the need for standardized tools and metrics: “What I believe is important again is to standardize because if any company starts using a different tool, then we are in the ocean of data models, difficult to compare. It would be easier if suppliers, retailers, even clients might use some standard tools.”

Insights from the Carbon Disclosure Project in 2023 reveal that organizations adopting standard methodologies for carbon footprint tracking, such as the GHG Protocol, report 20% faster implementation of decarbonization strategies. Standardized sustainability tools can simplify automated sustainability reporting and reduce inefficiencies.

Albertomaria also advocates for incorporating sustainability metrics directly into supply chain dashboards: “It would be very useful at least to have and measure a unit that might be the CO2, for example, emission per unit produced, for example, or sold. That would move towards taking action again.” By integrating KPIs such as CO2 emissions per unit, sustainability managers can prioritize initiatives that align environmental goals with business objectives.

Albertomaria Franzoni’s insights underscore the complex yet rewarding journey of sustainability management in food retail. From addressing the “grey zone” in global consensus to leveraging transparency and standardization, his experiences provide a roadmap for sustainability managers to drive impactful change. By embracing intelligent sustainability software, automated reporting, and carbon footprint tracking, the industry can align cost-efficiency with decarbonization goals, paving the way for a sustainable future.

For sustainability managers, the key takeaway is clear: collaboration, innovation, and actionable data are the cornerstones of successful environmental management.

The views and opinions expressed in this blog are solely those of the author and do not reflect the official policy or position of any company.