On sustainability, the ‘war for talent’ and twin transformation

Sustainability is now far more than a regulatory obligation. When properly understood, it becomes a strategic lever for growth, resilience and employer appeal. Rüdiger Senft is convinced that small and medium-sized enterprises (SMEs) in particular can benefit significantly from a consistent sustainable transformation – provided they view digitalisation as a tool and actively involve their employees. TRANSFER spoke to the Steinbeis entrepreneur about competitive advantages, regulation and the power of twin transformation.

Mr Senft, your focus is on sustainable transformation: what exactly do you mean by that?

I understand sustainable transformation as the process of positioning a company in such a way that it recognises risks and opportunities in a changing environment at an early stage and draws the right conclusions to remain viable in the long term. That is the foundation for long-term economic success.

We use three levers that have a direct impact on a company’s profit and loss account: Firstly, we reduce costs by using resources such as energy and materials more efficiently. Secondly, we identify risks – from the impacts of climate change to regulatory compliance. And thirdly, we increase revenue, for example through greater willingness to buy, product innovations and stronger customer loyalty.

In short: sustainable transformation in SMEs is not an end in itself, but a strategic necessity – particularly for German SMEs.

You help your clients turn sustainability into tangible competitive advantages. How do you approach this in practice?

To actually realise the described effects on the profit and loss account, we work with a structured four-phase model, which we have specifically tailored to the needs of SMEs at the Steinbeis Consulting Center Sustainable Transformation.

The first step is analysis and materiality: we identify the issues that are truly critical to the respective business model. Other aspects are deliberately treated as secondary. In this way, we create clarity and focus the allocation of resources.

In the second phase – strategy and objectives – we firmly embed these issues within the business strategy. We define ambitious yet realistic targets and KPIs that will later make success measurable – such as reducing energy costs or improving the ESG rating to secure better banking terms.

In the third phase, we support our clients through implementation. We assist with the structured execution of measures and ensure that the conditions for lower costs, reduced risks or higher revenues are actually created.

The final stage involves reporting and transparency. Here, we use formats such as the voluntary VSME standard or ESG ratings like EcoVadis to credibly present the achieved business case to banks, customers and employees. In this way, a regulatory obligation is transformed into a strategic advantage.

Technologies and strategies alone are often not enough. What role do employees play in a successful sustainable transformation?

Employees are at the heart of any change. Without them, every strategy remains a paper tiger. In medium-sized enterprises, identification with the company is often particularly strong – and that is a major advantage. We involve the workforce at an early stage to build acceptance and make use of existing expertise. The best ideas for resource efficiency often arise directly in production or sales.

Furthermore, sustainability is now a decisive factor in the ‘war for talent’: companies that act credibly and sustainably attract qualified specialists and retain them in the long term. We support organisations in fostering a corporate culture in which sustainability is seen as an opportunity rather than a burden.

Together with our colleagues at the Steinbeis Consulting Group Sustainability, we cover all aspects of sustainability from a single source: environmental, social and responsible corporate governance.

Many companies experience tension between sustainability and regulation. What do you recommend to your clients in this context?

My advice is clear: change your perspective. Regulatory requirements such as the CSRD or the Supply Chain Act are undoubtedly complex and demanding. However, anyone who views them solely as a bureaucratic burden is squandering potential.

I recommend that my clients use regulation as a ‘guide board’ for their own strategy. For example, those who voluntarily apply the VSME standard for SMEs create transparency – and this is precisely what banks demand when granting loans, just as major clients do when selecting suppliers.

Our task is to reduce complexity and focus on what really matters. The aim must be to meet regulatory requirements as efficiently as possible, thereby freeing up resources for the actual core business.

What role does digitalisation play in implementing sustainability strategies in companies?

Digitalisation and sustainability are two sides of the same coin – we refer to this as the ‘twin transformation’. Without a reliable digital database, sustainable management is hardly possible today. How am I supposed to reduce my carbon footprint if I cannot measure it accurately? Digital tools make it possible to efficiently collect, analyse and prepare data for reporting across the entire value chain. This saves considerable time and resources, particularly for SMEs.

Within the Steinbeis network, we use this technological edge to automate processes – for example, through software solutions for ESG data management or through hardware such as sensors to optimise resource usage.

In short: digitalisation is the key that makes sustainability in companies practicable, manageable and scalable.