Sustainability: the biggest innovation driver of all times

Today, sustainability is on everybody’s corporate agenda. But more than that, it is also a unique innovation and business opportunity.

To be very clear, sustainability is our duty and our responsibility. And it is here to stay. We are all facing the task of the century - there is nothing less at stake than our future. For us at Körber , sustainable action means balanced ecological, social, and corporate governance responsibility (ESG). As a company, we put these points into action with a clear commitment: to responsibly shape the future - which has been our goal for decades.

Saying this, sustainability NEEDS substantial global innovation, and – at the same time – it is and will also be the key driver for global innovation. Addressing some of the top global themes such as:

1. Environmental challenges: e.g. climate change, biodiversity loss, and resource depletion.
2. Promoting social diversity, equity, and inclusion: e.g. access to basic needs such as food and water, reduced poverty, support social inclusion, and creating jobs.
3. Supporting policy, regulations, and frameworks: e.g. Paris Agreement, European Climate Law, China's dual carbon target, United Nations Sustainable Development Goals (SDGs).
4. Driving technological advancements: e.g. renewable energy, smart cities, green mobility, smart farming, sustainable materials.
5. Creating substantial business opportunities: e.g. new technologies, products, and business models, customer USPs, growth opportunities, and reduced costs.  

And in this respect, it is very encouraging that almost all global companies have recognized and embedded sustainability into their corporate agenda and strategy.

Let me explain why I think that now is the time for quick movers, innovative leadership, and true entrepreneurship.

Looking at the top 5 global sustainability and innovations drivers, all industries – B2B and B2C – will need to substantially review, adapt and (maybe) even fundamentally restructure their business model, footprint, R&D approach, product design, and production process. This can and will be very demanding and challenging.

But it is also a big chance. Anyone who sees ESG today as a challenge to competitiveness is falling short! Sustainability is increasingly taking a core position in framing a business strategy. Now is the time to embrace it as a unique, tremendous, and maybe a once-in-a-lifetime chance for industries and companies around the world to participate, contribute, lead, and benefit from it – short-, mid-, and long-term.

The potential, the impact, and the changes are tremendous – today with already $30 trillion of global investments!

According to long-term research and observation activities and based on the global growth and innovation cycles of Nikolai Kondratjew, sustainability turns out more and more as the great 6th wave of global innovation – with digitization, data, and artificial intelligence as integral parts of it. Yet this wave is at the same time much more powerful and impactful than previous ones. It is by far the wave with the broadest and fastest impact globally. Without a doubt, sustainability is and will be the biggest driver for global innovation in the 1st half of the 21st century.

The typical patterns of past successful waves are all given, and the setup is more powerful than ever before:

1.    Technological innovation

2.    Capital Investments

3.    Entrepreneurship

4.    Government Regulations

5.    Globalization

Typically, during and after such a wave, there are tremendous changes, disruptions, emergences, and demises happening. Always resulting in the raise of new industries and new globally leading companies.

Business leaders around the world recognize this power and the business benefits of sustainable innovation for themselves as well. According to the Edelman Trust Barometer (2021 Edelman Trust Barometer Special Report: Institutional Investors), 88% of investors believe that companies that prioritize sustainability initiatives have a better chance of long-term success and returns than those that do not. 90% of CEOs agree that sustainability is fundamental for their own and customer success. And 80% of them expect a significant change in their products, production, and service model in the next 3 to 5 years to promote more sustainable practices. (Forbes) 

This is also supported by experts and the latest data on long-term investment expectations:

• ESG-oriented investing has experienced a meteoric rise — global sustainable investment now tops $30 trillion. Reaching net zero by 2050 could entail a 60% increase in capital spending on physical assets, compared to current levels. 
• In Germany alone, the volume of sustainable mutual or investment funds has risen over the past 15 years from 2.1 billion (2006) to around 246 billion euros (2021). (Statista, 2022)

Now is the time for innovators, entrepreneurs, and disruptors!

There are tremendous and game-changing opportunities in all industries. Some even speak about a Blue Ocean Strategy Opportunity!

Companies and entrepreneurs like Michael Otto and Otto Group are role models for sustainability and innovation since 1970/1980. The family-run German company Miele looks back on 120 years of tradition, but when it comes to sustainability, it impresses with its ambition to be the most sustainable company in its industry in the future. Or Vestas with Henrik Andersen, a clear market leader based on innovative power and a globally leading sustainable company. Bosch must be mentioned in this context, as it recognized early on that the needs of its customers for smart, climate-friendly solutions can only be met with a clear sustainability strategy.

For us at Körber, sustainability is a great responsibility, a unique entrepreneurial opportunity, and a core pillar of our journey and our group strategy. Our founder Kurt A. Körber has made sustainability a key topic early on – for himself and for our group:

“I am convinced that continued environmental protection does not diminish a company’s earning power but helps to safeguard it in the long term”, is a quote from him from over 30 years ago. We want to build on this pioneering attitude by setting ourselves new, ambitious goals and by contributing to faster sustainable change

through our technological know-how. 

Sustainability is part of our corporate DNA for a long time. And with our clear belief in market leadership through technology leadership we have embedded sustainability at the core of our innovative thinking, R&D agenda, and business development going forward – being a contributor and driver of the 6th innovative wave.

Today, we already invest almost twice as much in research and development and digital innovation as other (industry benchmark) companies.

Together with our customers and partners, we are working on some of the key questions around sustainability. Topics like:  

• renewable and biodegradable packaging solutions for consumer products,
• highly energy and resource-efficient production processes,
• circular economy machine design,
• state-of-the-future sustainable footprint and production locations,  
• high focus on sustainable supply-chain solutions,
• ideas for the next generation of battery cell production

These discussions and developments are executed every day together with our customers and business partners. Many of our solutions have already been awarded environmental, sustainability, or corporate prizes. Presented by customers, partners, media, and the public. This is a clear confirmation of our commitment and dedication to sustainability.

All this is supported by our belief in high-performing ecosystems and the application of the latest technologies such as sensors & robots, software & platforms, digitization & artificial intelligence.  

As a company, we have proclaimed the goal of being CO2 neutral by 2025. To this end, we are forging numerous alliances. Since 2021, we have been a member of Alliance to Zero  – a non-profit association of companies in the pharmaceutical and biotech supply chain that aims to facilitate the pharmaceutical sector's transition to net-zero emissions in line with the Paris Climate Agreement target. And in 2022, we joined the United Nations Global Compact Initiative, the world’s largest corporate sustainability initiative.

Innovation for sustainability & sustainable innovation: This is how we walk the talk and take responsibility at Körber. For present and future generations.

A good decision – Körber!

What is your view on sustainability & innovation?