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Companies that integrate sustainability at their core today will shape the future

Sustainability is not an option but a strategic necessity. The business landscape is undergoing profound change. Sustainability has shifted from being an optional initiative to a vital component of corporate strategy. Companies are no longer confined to the boundaries of their industries – they’re operating within a broader societal context. This evolution demands rethinking how value is created, how businesses engage with stakeholders, and how they navigate increasing regulations and public expectations.

“Quote Arjan (nog te bepalen) komt hier”

Arjan de Draaijer, Partner sustainability strategy & transformation at Deloitte

In this article, we explore the rising importance of sustainability, the strategic approaches companies can adopt, and the critical role of innovation and long-term planning in this transformation.

[Hier kan worden gelinkt naar de blog van Arjan de Draaijer over het integreren van duurzame doelen in de businessstrategie.]

The forces driving sustainability

Several interconnected factors are accelerating the focus on sustainability:

Governments are implementing stricter rules to ensure companies are transparent about their environmental and social impact. Examples include the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), which require businesses to report on their supply chain impacts and take accountability for them. Regulations like Ecodesign go even further, addressing how products are designed and produced to be more sustainable.

Sustainability is now a top priority for investors. While the specifics of their requirements vary, nearly all investors assess how companies address challenges such as climate change, supply chain risks, and long-term value creation. What started as a moral imperative is now also a business necessity.

Many companies are using sustainability as a competitive edge. By offering greener products or mitigating risks like resource scarcity more effectively, they can stand out in the market. This not only allows for premium pricing but also positions them better for a future where sustainability is the baseline expectation.

“Around 70% of our clients are professionals seeking durable, energy-efficient products that last longer and consume less energy, aligning naturally with their needs and our planetary goals.” —Alice Steenland, CSO at Signify

“We want to distinguish ourselves when it comes to innovation, design and sustainability. Your purpose statement may be to improve human lives, but that doesn’t mean much if your strategy is purely aimed at maximising shareholder value. You need another perspective on value creation, beyond traditional market concepts.” —Robert Metzke, senior vice president and Global Head of Sustainability at Philips

 

Research shows that consumers increasingly value sustainability. While this is most evident in affluent markets, there’s growing global recognition of companies’ responsibility to contribute to a better world. Businesses that embed sustainable practices into their core strategies – making them sustainable by default – build trust and enhance their brands.

From periphery to core activity

[Dit is in feite de kern van het verhaal, en het valt goed te ondersteunen met stemmen uit de praktijk. Dit is dan ook de meest logische plaats om te linken naar een overzichtsartikel op basis van de reeds gevoerde gesprekken met ondernemers, die ook de bron zijn van de citaten in dit artikel.]

For many, sustainability remains an add-on – tweaking existing products to make them slightly greener. However, genuine sustainability requires businesses to ask: Does what we do fit into a sustainable future? It’s not just about process improvement; it’s about redefining core operations.

Inspirational examples of businesses that have embraced this shift include:

  • Ørsted: Once a fossil fuel supplier, this Danish energy company transformed itself into a leader in wind energy. The move not only drove a sharp rise in its stock value, but also solidified its role as a sustainability pioneer.
  • Interface: This US-based flooring company committed to sustainability in the 1990s, developing circular carpet tiles. The transformation reshaped its product portfolio and bolstered its financial performance.

“In the area of circularity, we see opportunities on several fronts. We need to respond to these changes and identify what customers expect from us.”

Alexander van Schie, CSO at PostNL

Strategic tools for understanding impact and value

[Deze paragraaf en de twee volgende (over double materiality en innovatie) behandelen de meer technische kant van de duurzaamheidstransitie: hoe breng je die als organisatie in de praktijk? Aan deze onderwerpen kan nog een apart artikel worden gewijd.]

Tools like the Strategic Impact Assessment (SIA) are essential for companies navigating this transformation. SIA evaluates the impact of business activities in terms of societal costs and benefits, offering insights across three dimensions:

  1. Societal impact: How does the company contribute to broader goals, such as reducing carbon emissions or preserving biodiversity?
  2. Stakeholder expectations: How well does the business meet the demands of regulators, consumers, and investors?
  3. Strategic value: Which activities and products deliver positive societal impact while strengthening financial outcomes?

Unlike traditional sustainability reports, which often measure inputs and outputs (like energy use or emissions), SIA provides a strategic lens, enabling businesses to make decisions that are both sustainable and financially sound.

“Quantifying and commercializing societal value remains challenging. Sustainability valuation only becomes truly relevant when the market assigns value to it. The first steps toward a valuation model for biodiversity and sustainability are already underway.”

Gijsbert Appels, CSD at Al Dahra

Double materiality: a holistic view

The concept of double materiality urges companies to evaluate both their impact on the world and the world’s impact on them:

Inside-out

Assessing the company’s environmental and social footprint, such as emissions or product sustainability.

Outside-in

Considering how external factors, like climate change or resource scarcity, affect the company’s operations.

By integrating these perspectives, businesses gain a fuller understanding of how sustainability presents both risks and opportunities.

“We often discuss the ‘twin transformation’ – sustainability and digital technology – which are converging rapidly. Technological advancements provide new opportunities to rethink and redesign our processes and products in sustainable ways. This alignment is critical for accelerating our sustainability agenda.”

Katharina Stenholm, CSO at dsm-firmenich

Innovation must move from the periphery to the heart of corporate strategy. This involves balancing short-term initiatives that deliver immediate results with long-term visions that prepare companies for transformative shifts.

The challenges of transformation

[Deze paragraaf gaat over de uitdagingen ‘van buitenaf’ die komen kijken bij een duurzamere strategie. Ook hier kan uitgebreider op worden ingegaan in een apart artikel.]

Transitioning to a sustainable future is complex. Businesses face several challenges:

Uncertainty

Political and economic volatility can hinder long-term planning. Yet this planning is critical to prepare for a sustainability-driven future.

Freerider issues

When one company invests in sustainability but competitors do not, it can undermine competitiveness. Sector-wide collaboration is essential.

Resource constraints

While many businesses want to invest in sustainability, financial limitations can delay large-scale transformation.

“Right now, everyone approaches sustainability from his own private perspective. But we need to consider the entire ecosystem, and bring parties together. A holistic problem needs a holistic approach, and holistic solutions.”

Leon Wijnands, CSO ING Nederland

Why immediate action is essential

The physical limits of our planet are becoming alarmingly clear, with water shortages, wildfires, and extreme weather events signaling the need for urgent change. Regulatory pressures, consumer expectations, and competitive advancements are intensifying. Companies that invest in sustainable transformation today won’t just comply with these demands – they’ll future-proof themselves and lead the charge in creating a better tomorrow.

“In the healthcare sector, success should not only be measured by financial gain but also by societal impact. We strive to create value that is economically viable as well as socially and ecologically sustainable. Our approach focuses on long-term health improvements and sustainable practices that go beyond short-term solutions.”

Robert Metzke, senior vice president and Global Head of Sustainability at Philips

How Deloitte can help

[Er kan een aparte webpagina worden ingericht met meer informatie over wat Deloitte precies kan doen om organisaties te helpen bij het implementeren van een duurzame strategie.]

Deloitte helps businesses navigate these complexities by combining in-depth sustainability expertise with operational insights. Our approach includes:

Integration

Aligning sustainability with financial performance and strategic objectives.

Perspective

Offering comprehensive analyses that combine inside-out and outside-in viewpoints.

Trust-building

Guiding clients through pilot projects to build confidence in new methodologies.

With a proven track record in transformations such as digital innovation, our team enables businesses to meet today’s challenges while preparing for the future.

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