Sustainability management: “We can only do it together”

2023-07-27 22:00:00

From idealism to necessity: climate change, social inequalities, EU rules are creating a job boom for sustainability managers.

Sandra Hertl (l.) has been in charge of sustainability management and human resources development at Teekanne since 2021.
Diana Reuter (r.) has been Sustainability and Innovation Manager at Woerle since 2019. In an interview, the two tell what it means to be pioneers in their respective companies and how it is possible to embed climate protection and social issues in all areas of the company.

Why were your departments set up? Sandra Hertl: Sustainability is the most pressing issue of our time. It affects not only companies, but also us as individuals and as a society. The EU with its rules and the obligation to report on sustainability, which will take effect from 2024, have increased the pressure on companies to develop in this direction.

Diana Archyde.com: Consumers are also demanding more and more information regarding the sustainability agendas of companies. At the same time, it was important to Gerrit Woerle, who took over the cheese dairy from his father in 2021, to take responsibility as an entrepreneur and make a contribution right from the start.

Sustainability has several dimensions: ecological, social, economic. How do your companies live this? Hertl: Due to the long history and the fact that Teekanne is a family business, we have always not thought regarding the next quarter, but always regarding the next generation and the one following that. As far as ecological and social issues are concerned: we have the Rainforest Alliance, for example, as a strong strategic partner in the certification of raw materials to ensure standards right at the beginning of the supply chain. We have been working with companies for generations. Sustainable relationships now help us enormously: we are currently determining our CO₂ emissions in the upstream value-added steps. If we only had retailers where we didn’t even know where the raw materials came from, we would have a hard time.

Reuter: For us, the holistic approach is important: nature, people and animals must be in harmony with profitability. That is why we have launched our own sustainability program. Part of this is “biodiversity in the hands of farmers”: It’s regarding increasing biodiversity in farms, but also in the region. It is important to us to develop measures that do not cause any significant cost disadvantages for farmers and that can be implemented in the long term. We also want to reduce CO₂ emissions, not only in the company but also in the supply chain – this is where a large part of the CO₂ footprint lies in the food sector.

How easy is it to push through sustainability agendas in the company? Hertl: It has arrived at the management level how important the topic is. This is also reflected in the fact that the guidelines are very, very short. If I want, I can bring up topics weekly in the regular meeting with the managing director.

Reuter: The issue of sustainability is extremely complex. This often leads to conflicting goals. It is necessary to align oneself strategically, to look at what is practicable, affordable and realisable. Our decisions are not always purely monetary. The positive effects they have on the company in the long term are also strongly valued. There are open discussions, which are also necessary in strategic processes.

Hertl: The big advantage that we both have as sustainability managers in family businesses is the long-term perspective. Because in listed companies, short-term quarterly targets can definitely be limiting factors.

Studies show that almost every second person attaches importance to how sustainable their employer is. A fifth have already resigned because of missing green values. Hertl: That’s for sure. Younger colleagues in particular make completely different demands on the company. We know we can’t change everything at once, but we make visible where we have leverage: we communicate our sustainability initiatives and also integrate them into employer branding.

Reuter: Although we’re in the country and have a three-shift system, there are now more employees who don’t drive to work but cycle to work, use public transport, or carpool. Especially with the younger ones, we notice that sustainability is an issue. We also have applicants who specifically ask regarding it.

What is your motivation for the job? Hertl: Of course you can make your own contribution privately, but working for a company like Die Teekanne – we are the world market leader in herbal and fruit teas – has a completely different leverage effect. What drives me is the creative opportunity that the job brings. Where, apart from perhaps in the digital realm, do you have them?

Reuter: It is important to me to take on a meaningful task and to make an active contribution to the company, to tackle environmental problems, but also to involve employees socially and to ensure that our farmers are doing as well as possible and that small-scale agriculture is preserved .

What do you need to bring with you as a sustainability manager? Hertl: The main requirement is that you are interested in the topic and want to get involved with new things professionally, because the area is developing extremely dynamically. I have a classic business education. This is an advantage for me because I can talk to the CEO, sales and marketing manager on an equal footing. It also takes a bit of pragmatism not to approach certain things too ideologically, to look at the feasibility: It’s better to take one step than none at all!
Reuter: Sustainability is not an isolated area, it permeates every area and therefore all departments. For me, it takes a passion for the topic, empathy and communication skills to be able to motivate others.

Ms. Hertl, you also have personnel development agendas. How do these two areas fit together? Hertl: We say: “The teapot makes the tea and we make the teapot.” That’s not just a claim, we live it that way. For example, when it comes to co-creation: We have the collaborative format of the jam session, where the young marketing colleague who has just completed her studies meets the production worker with a migration background who has been with the company for 35 years. Both give open feedback and initiate innovation processes. Ideas always have to come from the organization. We in management don’t know where we can save energy, but the people in the technical area know exactly. As an organization, we can only do it together!

From a purely technical point of view, sustainability reporting will also reflect the social key figures.

What tasks await in the future? Hertl: The mandatory sustainability report as part of the accounting is a major project for the Teekanne Group, and not just in Austria. It’s regarding IT processes, regarding setting up sensible data management. At the same time, we have to free up time for things where we really want to make a difference: such as measures to reduce emissions that we are developing together with partners at source, or a resilient raw material procurement strategy to react to future climate-related crop failures.

Reuter: We at Woerle are also preparing for the sustainability reporting obligation, and the strategic further development of the sustainability agenda is also an issue. Of course, another relevant area is that of packaging: How do we pack our products so that shelf life and product safety are guaranteed? How do we move towards circular economy and recyclability at the same time?

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