Sustainability leadership means taking the long view

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Sustainability: not a matter of if, but when (iStock)

Siegwerk is a Business Reporter client.

When it comes to striking a balance between doing business responsibly and doing business profitably, today’s corporate leaders are facing increased pressure, as both economic strain and climate change build in intensity. It might be tempting to tick the sustainability box by incorporating only the essential elements of a sustainability policy into business practices. However, by not making the necessary investments in the long term, leaders are setting their businesses up to pay a hefty price in the future.

In 2022, a survey by the IBM Institute for Business Value (IBV) found that 93 per cent of global respondents said that over the course of the previous year, environmental issues had become even more important to them. Moreover, 49 per cent of consumers who responded said they had paid an average of 59 per cent more for products branded as sustainable or socially responsible in the preceding 12 months.

Being a responsible business is a clear competitive advantage. Consumers don’t want to buy products that have been produced in an unethical way or have harmful impacts on people or the environment, and are willing to pay for the reassurance that they are not supporting practices, such as child labour, they do not agree with. Regulators are also increasing pressure on businesses by forcing them to take responsibility for the harmful impacts of their products. But true sustainability leadership goes beyond just looking at your own operations and products.

“Just looking at the packaging industry as an example, there is an increase in regulations where the producers of packaging will be made responsible for the end of life of the packaging,” says Alina Marm, Global Head of Sustainability and Circular Economy at Siegwerk. “And more stringent requirements will also be implemented for supply chains.

Germany, for example, will soon hold companies responsible for detecting and addressing risks in their supply chain, with financial penalties for non-compliance.”

Siegwerk, a leading global producer of inks and coatings for packaging, prides itself on walking the talk when it comes to sustainability in the sector.

“It starts with transparency,” Marm says. “We looked into two aspects as a starting point. One is our environmental responsibility as a company. How are our raw materials produced? Are there negative social or environmental consequences, and how can we innovate to mitigate these? What are the working conditions in our supply chain? And both of these aspects start with a journey of transparency, ensuring that we have the necessary data to be able to design interventions that hold both us and our suppliers accountable.”

As regulators and consumers increase pressure and demand, business leaders are realising that future-proofing their company is essential, but may require significant investment.

“Of course, it’s going to cost you more in the short term to transform your business towards becoming fully responsible,” Marm says. “But the investments today will pay off quite quickly and I would even say they are a necessity for survival, because if you don’t start with these transitions now, you’re going to be hit hard when regulations are implemented. And it’s a matter of when, not if.”

To find out more about how Siegwerk can help transform your packaging to enable sustainability, visit www.siegwerk.com/en/home.html