Once an individual lifestyle and consumer trend, now a social movement and critical economic factor; once a "nice to have", now a topic on the C-level agenda - we are discussing social, ecological and economic sustainability. As an environmentally conscious and ethically minded generation grows, the pressure on retailers increases. Consumers, investors and new regulations such as the Corporate Sustainability Reporting Directive (CSRD) expect companies to take responsibility by understanding their business model's environmental and social impact and asking themselves: How can I manage my company in terms of (economic) sustainability? How can we make sustainable business decisions? But let's start at the very beginning and clarify the fundamental questions first:
Social, ecological and economic sustainability includes generating profits without damaging the required resources in the long term. In concrete terms, this means using raw materials, goods, and capital to continue to be available in the same quantity and of the same or better quality in the future. Companies that operate sustainably aim to comply with legal requirements and align their actions with ecological, social and economic goals. These are mutually dependent. So, what is sustainability? In simple terms, if you only fell as many trees as will grow back, you ensure that the forest retains its value in the long term and acts economically sustainably in harmony with resource conservation and social compatibility.
Experts warn that sustainable behaviour - "doing no further harm" - is no longer enough to reconcile the economy with the planet. Organisations must act according to the concept of the regenerative economy. The approach? Aligning the economy in such a way that companies create positive solutions through their economic activities and contribute to preserving still intact ecosystems or regenerating those already under attack. To stay with the example of the forest, this means that fewer trees are felled than grow back - and yet the concept is economically successful. By using only as many resources as are renewed by themselves, we help to ensure that the environment and the economy are in harmony. It means that we meet our own needs and ensure that future generations have access to more resources. If we design or redesign organisations according to these principles, we build a bridge between social, ecological, and economic sustainability and act regeneratively.
You are probably asking yourself: How on earth do we get there? This question is more than understandable, given the complexity of the task. But as is always the case with development processes, it only happens in stages but step by step. A structural guide, such as the Conscious Commerce Circle from diconium, helps to set the direction and divide mammoth tasks into many small, manageable steps. The Conscious Commerce Circle is a starting point for companies to introduce and improve effective measures.
In the fast-paced world of digital commerce, many companies are rethinking their approach. Many consumers expect their favourite brands to design business processes in such a way that they conserve natural resources (or even actively contribute to restoring or regenerating them). Many companies have recognised this and firmly integrated sustainable practices into their business model and strategy. The following examples show what these measures can be:
In addition to positively impacting the environment, society and public image, ecological, social and regenerative sustainability in the company also brings economic benefits.
A sustainable company takes responsibility. Responsibility for the current community and future generations. Other interest groups also see and appreciate this - be it skilled workers and young talent, investors, potential customers or the general public.
Word has gotten around that every robust and future-proof brand must "take care" of sustainability. Consumers and buyers are often more demanding than the current range of products offered by companies in the retail sector. In the worst-case scenario, the lack of consideration of sustainability issues can be a knock-out criterion when purchasing. This is because customers have a wealth of other brands to choose from, especially in retail. Here, sustainable practices serve as a differentiating factor to gain customers' trust. But it's not just customers who are demanding a rethink in retail. Legislators and financial markets are also increasing pressure on companies to operate sustainably. Today, every CEO must pay attention to the issue of sustainability. This offers the opportunity to do things better. But tangible questions need to be clarified before a company tackles the "social, ecological and economic sustainability" project: How do you reconcile economy and ecology? And how can economic success still be achieved? How can the transformation also succeed from a social point of view? How can the transition to a regenerative economy succeed? How can ecological aspects be monitored throughout the entire supply chain? Questions upon questions that show: The topic is complex.
The fact is that sustainability in retail is a complex issue. How deeply sustainability should be anchored in a company depends on what ambitions the company is pursuing. For example, if a company strives for a regenerative economy, this goal should be anchored in the company's DNA and integrated at all levels along the value chain. However, sustainability does not necessarily have to change all company areas fundamentally. For example, a company can still strive for the highest profit but at the same time at least fulfil the legal requirements regarding sustainability. This company would then "only" make necessary changes along the value chain. Although companies are being pushed by stakeholder expectations and new legislation to integrate sustainability, there are different approaches and levels. But where does my company currently stand? And how do I get started? The Conscious Commerce Circle from diconium can help you discover. It provides a structure for social, ecological and economic sustainability in retail.
The Conscious Commerce Circle is a structural tool that helps companies analyse a company's sustainability status quo and identify effective optimisation levers. The levels of the Conscious Commerce Circle are detailed by elements into which the company's current measures and challenges can be categorised. The Conscious Commerce Circle thus adapts individually to the level of maturity (How far along is the company?) and the level of ambition (What are the goals? How sustainable should my company become?). It, therefore, serves as a starting point for effective social, ecological and economic sustainability improvement measures. We also want to use the Conscious Commerce Circle to show our customers that they can make a significant difference even with comparatively small impulses and food for thought.
The Conscious Commerce Circle is aimed at decision-makers in and around the field of (digital) sustainability. How you can recognise that the Conscious Commerce Circle is precisely the proper structure for you:
- You want more social, ecological and economic sustainability in your organisation and are looking for solutions and first steps.
- You want to find unused resources and potential or growth opportunities to develop your business model further in terms of sustainability.
- You want to make good, fact-based and quick decisions in sustainability.
- You want to know how to get others in your organisation excited about a regenerative future.
Together, e.g. in the form of a workshop, we identify the status quo of your company in terms of sustainability and look to the future: What do regenerative practices look like? How can I align my business model with social, ecological and economic sustainability? What levers are still available for optimisation? And this is how we proceed together with you:
The Conscious Commerce Circle needs to provide a detailed plan as to which of the recommended measures should be implemented first or which of the proposed projects has the most potential. It gives ideas or recommendations, but it is up to each organisation to decide which steps to take first and how to integrate them into their day-to-day operations.
A key difference to other management approaches is the more accessible access to sustainability and the acceleration of implementing measures. The Conscious Commerce Circle helps to discover white spots, i.e. previously unused resources potential or growth opportunities that can be used to increase the company's sustainability based on its ambitions.
In practice, the Conscious Commerce Circle helps us integrate existing measures and challenges into the framework's elements. This gives us an overview of the company's structure in terms of sustainability. This uncovers new dependencies and gaps and sharpens the overall understanding of sustainability within the company.
In July, we organised an interactive online workshop on conscious commerce with existing and new customers from various sectors (e.g., textiles, IT, and industry). As part of the workshop, participants were introduced to the Conscious Commerce Circle and had the opportunity to apply it to a fictitious company. The discussion also resulted in valuable cross-industry insights that we would like to share with you:
- Due to the internal networking and external dependencies of sustainability, companies face similar challenges.
- Employees are the driving force behind sustainability and must be actively involved in the transformation from the outset. Therefore, giving them time to work on sustainability projects is essential.
- Transparency, honesty and communication are fundamental prerequisites. A strong vision also provides a solid starting point.
- Every step towards sustainability is a step in the right direction. Due to the high complexity of the topic, it is impossible to define a clear goal right from the start. The keyword is "just start", and take small steps to greater sustainability.
The sustainability experts at diconium know your industry and its challenges and can support you with tailor-made solutions for greater sustainability. Even if the challenges are significant and the topic is complex - it is worth being one who actively shapes your industry's future. Let's get started!