Meike Lerner (Bank in the Diocese of Essen)
Photo credit: Bank in the diocese of Essen, VentureCapital Magazin, Pixabay.
With her book “Sustainable Corporate Strategies for Dummies” Meike Lerner has written a guide for entrepreneurs to help them To transform sustainability into a success factor. what matters, she reveals in an interview.
VC Magazine: In your book, you wrote about sustainability strategies for companies. To what extent has the topic of sustainability reached small and medium-sized businesses so far?
Lerner: Unfortunately, this is still far too low and, above all, often with a false perception. Many SME managers still seem to be unaware that sustainability is crucial for the economic success of a company and no longer a nice-to-have issue. It is no longer just a matter of switching to recycled paper or introducing a veggie day. Rather, a valid sustainability strategy is crucial for assessing the governance of companies – and thus also for the risk assessment by potential investors and lenders. It must be plausibly visible to them how companies are embarking on the path to sustainable transformation. If a company has no plan for how it can contribute to the 1.5 degree target along the supply chain in the future, save resources or optimize working conditions, the risk of default on medium and long-term loans increases; potential returns shrink. In short: debt capital will be more expensive and harder to obtain. This is not a dystopian future scenario, but reality.
VC Magazine: What role can start-ups play in the implementation of sustainability strategies for medium-sized companies?
Lerner: Start-ups have a great opportunity to integrate sustainability in all its facets into their own corporate philosophy and business activities right from the start. This potentially also has an impact on cooperation with SMEs – whether they are customers or B2B partners. Sustainability is also referred to as a trickle-down effect from large companies to smaller ones. In this case, however, I can also imagine that the bottom-up principle is at work – that is, the small companies have an influence on larger companies through their business practices. In addition, it is currently start-ups that are providing good and practical solutions for the implementation of sustainable corporate strategies, be it in the form of software solutions for ESG data management or in the consulting sector.
VC Magazine: What advice do you have for entrepreneurs who want to make their company more sustainable? What are the easiest ways to make this happen?
Lerner: There is no blanket answer to this. The impact on people and the environment depends heavily on whether a company is active in the manufacturing or service sector, for example. The levers that can be used are correspondingly different. However, there is one thing in common: medium-sized companies in particular often already act sustainably in certain areas, for example out of a sense of social responsibility and a sense of local affinity. The first and easiest step is to strategically analyze what is already there. Many companies are surprised at everything that counts as sustainability and has so far gone uncommented on as a matter of course. If a company knows where it stands, it can set priorities, formulate goals and initiate measures. The strategy is ready! Entrepreneurs must not be misled. Sometimes the real sustainability potential lies in areas that do not seem so attractive at first glance. But this can result in a very authentic and productive USP. With regard to sustainability reporting and the way banks and investors view a company, CO2 emissions are currently the focus. The issue of climate neutrality and commitment to the Paris Climate Agreement is therefore relevant for all companies. Unfortunately, it is not always the easiest issue to implement.
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VC Magazine: Sustainability reporting is becoming increasingly important for companies and is also required by guidelines such as the CSRD. However, reporting obligations bring additional work. What is the best way for companies to go about this?
Lerner: Sustainability reporting is indeed associated with effort. Ultimately
However, all forms of reporting – whether voluntary, for example according to DNK, or mandatory according to CSRD/ESRS – serve to take stock and formulate goals that are necessary for a successful sustainability strategy. They are therefore a good starting point for a long-term, sustainable transformation, and as described above, this is necessary for economic success. I therefore see reporting as an opportunity and the provision of resources and the setting up of processes as an absolutely necessary investment in the near future.
VC Magazine: What risks do you see entrepreneurs facing when it comes to sustainability?
Lerner: Sustainability and the regulations associated with it pose a comparatively small risk to companies. The real risks for companies lie in dwindling resources, location and production risks due to, for example, extreme weather caused by climate change, protecting the workforce from these extreme weather events, or the instability of political systems that will bring about the climate-related plight of people and the associated migration.
VC Magazine: Thank you for the interview!
About the interviewee:
Meike Lerner is sustainability officer at Bank in the diocese of EssenPreviously, she worked as an independent sustainability consultant specializing in sustainability reporting and CSRD.
