Instead of viewing sustainability regulations as a mandatory task, companies should see them as an opportunity to innovate and grow. This is the perspective shared by Michael Wagemans from KPMG and Valérie Siegler from Spadel.
When Stephen Elop took over Nokia in 2010, he gave a staff speech that went viral. “We are standing on a burning platform and must jump into the icy water to survive,” he said. The Finnish phone giant had done what companies should never do: stand still. They missed the smartphone boat and saw their competitors Apple and Samsung gain market share. “Standing still is moving backward. By innovating, you can maintain or improve your position,” says Michael Wagemans, Head of Sustainability & ESG at KPMG in Belgium.
It’s no coincidence that Wagemans, a sustainability expert, emphasizes innovation: the two are interconnected. “Economically, value creation is about making things better and more efficient. When you include sustainability, innovation often comes into the picture – radically or gradually, in terms of products or business models. For example, Philips used to sell incandescent bulbs, but now it focuses on light as a service. Conversely, you need to innovate to tackle sustainability or climate challenges.”
From Rules to Innovation
Wagemans views the CSRD (a European directive that requires companies to report on the impact of their activities on people and the environment) as a significant opportunity for companies. “It not only encourages them to become more sustainable but also to innovate. Instead of viewing the CSRD as a mandatory task, companies should see it as a tool to make different and better decisions. By identifying risks and opportunities, you can adjust the business strategy, often leading to innovation.”
Change the World - Subscribe Now
This approach is exemplified by Spadel. “Brand strategy, innovation, and ESG are handled by one team in our company,” says Valérie Siegler, Brands, Innovation & Sustainability Director for the Spadel group, known for brands like Spa and Bru. “This integrated organization ensures we’re aligned and always true to our company mission. We innovate not only to improve the business but also to address customer or societal demands.”
A prime example is the Eco Packs that Spa launched two years ago. “The expectations of our consumers and stakeholders, along with our goals to reduce our CO2 emissions, prompted us to develop practical and ecological 5- and 10-liter bag-in-boxes,” Siegler explains.
Extracting without Exhausting
Since its inception, Spadel has been concerned with the environment, as climate change can impact the water sources. “It is more important than ever to exploit natural mineral water in a sustainable way,” says Valérie Siegler. “We extract less than 10 percent of the available water and protect the environment in our 13,000-hectare extraction area. Together with our local partners, we measure the quality of the environment and maintain biodiversity. This aligns well with what Michael and his colleagues at KPMG call innovability: innovation and sustainability go hand in hand.”
Related Article: Australia Unveils Sustainable Finance Roadmap to Lead in Global Sustainability Efforts
