Overview
Recommendations
Next Steps
Social media
Economic Sustainability: Building Blocks for a Green Future
What do we actually mean when we talk about sustainability? For companies, this has long since become a crucial question that is getting increasingly difficult to answer. Growing demands and expectations from stakeholders make it clear that sustainability is no longer just an ethical obligation, but a strategic necessity. Companies are therefore faced with the challenge of anchoring sustainability as an integral part of their strategy. Preferably as part of a holistic approach that takes equal account of economic, ecological and social aspects.
As experts in the field of sustainability, we not only offer strategic support in the implementation of your sustainability strategy. We also provide comprehensive training opportunities. Our aim is to raise awareness of the importance and potential of a sustainable economy. Our focus lies on knowledge exchange, innovative processes and inspiring initiatives to create a sustainable basis for life. Through in-depth analyses, current research findings and practical examples, we want to encourage companies and society to consolidate sustainable action.
What Does Sustainability Mean in an Economic Context?
Economic sustainability means promoting a way of doing business that is viable for the long run and does not focus on short-term profits. It should rather ensure the preservation of natural resources while taking environmental and social aspects into account. This includes promoting fair trade, supporting local communities and taking environmental and social costs into consideration when making economic decisions. Weighing up ecological and economic relevance is essential for this.
We firmly believe that following the principle of sustainability is both an ethical obligation and an economic necessity. By using our resources responsibly, we can both protect our environment and contribute to a fair society and preserve it for future generations. With our part-time study programs such as the Executive MBA Energy Management, the Master Sustainability, Entrepreneurship & Technology and the ESG & Sustainability program, the WU Executive Academy actively contributes to bringing about a positive change towards a sustainable society.
Resources for Your Business and Personal Development
On our website you will find a variety of articles, interviews and practical tips to help you align your personal and corporate goals with a sustainable strategy. Take a look at our latest news articles on sustainability right here, or scroll down, where we explain the key terms related to economic sustainability and offer support for your journey towards sustainability. From reducing your ecological footprint to implementing environmentally friendly business practices.
Convincingly Sustainable – Making the World a Little Bit Better
April 25, 2023
The power of persuasion as a leadership tool
Jürgen Wahl, CEO of GUT GmbH and Global Executive MBA alumnus, understood the important connection between ecology and economy already at a young age. Today, the experienced top manager and entrepreneur is an active consultant on all things sustainability – and his number one leadership tool is persuasion.
Biodiversity is his hobbyhorse. In his spare time, he enjoys nature. And professionally, he is making the business world more aware of environmental issues and, at the same time, more profitable: Jürgen Wahl, entrepreneur from Upper Austria, advocates for the UN sustainability goals in many different ways. Back in high school, the passion of his biology teacher (who was among the first to establish a wood chip biomass boiler system in his town and whetted his students’ interest in biodiversity and ecological awareness) left a huge mark on him. “Back then, I realized that ecology and economy shouldn’t be in competition with each other,” the former start-up manager as well as top manager and consultant of many years professes.
Around the World with an MBA in His Bag
His passion led him to study at the University of Natural Resources and Life Sciences, Vienna, and after that at the Vienna University of Economics and Business, where he completed an export management program in 2003 and the Global Executive MBA program at the WU Executive Academy in 2004. Around the same time, he volunteered to complete his civilian service in Bhutan, where he planted trees as part of a reforestation program. Back in Austria, he decided to join the corporate sector: “I wanted to change the business world to make it greener,” he recounts. He landed his first job in the system catering industry, at McDonald’s, where he established a system for collecting packaging materials and kitchen refuse (organic waste, used oil, etc.) to be recycled. This position as an environmental manager set him on a course of promoting sustainability that he would keep pursuing for a long time to come. In 2006, he became a freelance company consultant and started building up start-ups in the energy sector as an interim manager and CEO. He, for example, managed to stabilize the gas trading company Centrex and the Exxa energy exchange via turnaround.
Back to His First Job – as a CEO
In 2011, he returned to his first place of work as CEO. Just a year later, he bought the company (by then called GUT GmbH) from his former boss at McDonald’s. It took him just five years to pay out the banks and investors and fully acquire the company. To this day, he holds all CEO and management board positions. He also heads Wahl und Partner, an internal consulting firm with four employees, which is closely linked to the consulting segment of GUT GmbH. This way, Jürgen Wahl leads his customers – companies that either commit to greener policies of their own accord or are forced to do so by legal stipulations – to sustainability in a very practical way. Sometimes, it takes a turnaround to eliminate deficiencies.
Persuasion as a Leadership Skill
Jürgen Wahl considers his persuasiveness and a fair amount of tenacity his superpowers: “I am not an idealistic do-gooder who glues himself to the crosswalk – although I do understand the desperation especially young people are feeling,” he admits. “Leadership is based on the ability to convince people. I always try to convince them to engage in sustainability measures in their companies by offering them clear paths and showing them the ensuing process-related and economic benefits,” he says. The issue of sustainability is the driving force behind an all-encompassing transformation process, which will eventually leave a company in a much better place, he states.
Jürgen Wahl
- Global Executive MBA alumnus
By strategically introducing sustainability policies into a company, you will also be forced to comprehensively optimize work processes, helping you, in turn, to cut costs and enhance team motivation.
The Principle of Small Steps
In this process, it is important for consultants or managers not to expect a company to achieve too much of a transformation at once: “Transformation is best served in small doses. Especially for companies that voluntarily commit to more sustainability, this can greatly help along the transformation process. We always make sure to present our customers with best practice examples from the Nordic countries and Germany and help them to identify lessons for their own transformation process.”
Be it in his personal or his professional life: Jürgen Wahl strives to “make the world a little bit better,” as he says. He spends most of his free time in the mountains, where he hopes to continue to enjoy the intact nature. In his home region surrounding Lake Lunzer See, he also volunteers to promote biodiversity. “All of this motivates me to do a good job,” he asserts. As a leader, Jürgen Wahl aims to encourage his employees to get involved: “I involve my team in everything and do my best to create an atmosphere of mutual understanding. One thing is true for both employees and customers: if they understand why they are supposed to do something, they will be more motivated, and change will become much easier.”
Wordrap
- What annoys you most about the media?
- Sustainability is a complex issue. Right now, I’m annoyed that electromobility is widely viewed as a panacea without taking into consideration the problems associated with sourcing raw materials for manufacturing batteries on a global scale. I also find a hostile attitude towards technology quite irritating. Banning combustion engines, for example, won’t get us anywhere – because the next 20 years will surely bring much advancement in research and development.
- What gets you out of bed in the morning?
- My alarm clock. And my morning meditation routine – it helps me to mentally prepare for the day ahead.
- Which of your strengths do your employees appreciate the most?
- My optimism.
- Which strength do you value most in your employees?
- The fact that, as a team, we are a well-oiled machine, and I can rely on all my employees.
- Which gadget is absolutely indispensable for you in your work?
- My laptop, and for about two years now also reading glasses.
- If you had three wishes, what would they be?
- Good health. That my children will have a good life also in the future. And, in general, a happy and fulfilled life.
- What would you like people to say about you once you’ve retired?
- I’m not generally one to look back, but I would like them to say: “He made the world a little bit better.”
Click to learn more about the Sustainable Development Goals.
Update for Leaders
Join 15,000 + professionals and get regular updates on leadership and management topics. Learn something new every time.
Table of Contents
Strategic Sustainability Management in Your Company
Strategic sustainability management is a systematic approach that ensures that sustainability goals are firmly anchored in the corporate strategy. Based on an analysis, the sustainability aspects relevant to the company are determined and measures are developed to minimize environmental, economic, and social impacts. This enables companies not only to meet regulatory requirements, but also to assume responsibility in terms of social sustainability. It also ensures long-term competitiveness.
Strategic sustainability management is of central importance for companies for several reasons. It lays the foundation for environmentally friendly business practices by helping them to use resources more efficiently in the long term.
Acting in an economically sustainable manner means making forward-looking decisions. This helps to keep expenditure in check and make the most of the available budget. Acting in an environmentally conscious manner means avoiding, reducing or offsetting measures that have a harmful impact on the environment.
At the same time, implementing effective sustainability management enables companies to meet rising expectations of customers, investors and other stakeholders.
Responsible Corporate Governance: What is CSR?
Corporate Social Responsibility (CSR) is fundamentally based on the awareness that companies have a social responsibility and must act accordingly in the interests of a sustainable economy. In 2011, a strategy on social responsibility was published by the European Commission for the first time. It is based on the intention of creating good conditions for sustainable growth and responsible business. Therefore it identifies areas for action and provides guidance on how CSR can be implemented in existing concepts and corporate strategies.
In this respect, CSR pursues a principle of action. According to this, companies - over and above political objectives - voluntarily integrate ecological and social measures into their business activities and in cooperation with stakeholders. This includes, for example, the implementation of or participation in projects to protect our ecosystem. Philanthropic activities such as donations to charitable organizations and youth development or support for local community projects also fall under the term CSR. Furthermore, companies can fulfill their social responsibility by creating fairly paid jobs, safeguarding employee rights and promoting diversity and inclusion in the workplace.
CSR has become particularly important as companies are increasingly judged on what they do for society including the environment - and what commitment they make. Even if the implementation of CSR measures is voluntary, these measures are now taken for granted in the context of social responsibility and have a significant impact on a company's reputation.
More Sustainability Through ESG? The Key to a Holistic Corporate Strategy
In this context, the question arises as to how social responsibility and sustainable business practices can be implemented. An effective sustainability strategy could, for example, be based on the principles of ESG. But what exactly is behind the buzzword "ESG"?
ESG stands for Environmental, Social and Governance. These three key aspects (also known as the "three dimensions" of sustainability) enable a holistic assessment of companies. They are ensuring that economic success is not achieved at the expense of environmental protection, social justice and ethical standards. Taking ESG criteria into account is therefore crucial to ensure long-term growth and resilience. It also helps to meet the expectations of various stakeholders.
Below are some examples of how sustainable companies specifically integrate ESG principles into their organizational strategy:
Environmental: Responsible use of raw materials, use of renewable energy, reduction of emissions, economic and sustainable travel, protection of natural habitats
Social: promotion of healthy working conditions, diversity and inclusion, social commitment, product responsibility
Governance: transparency in decision-making processes, compliance with ethical principles, integrity, protection of human rights, avoidance of exploitation, appointment of a money laundering and compliance officer, risk management, supplier selection
Outlook for 2030: The Importance of the Sustainable Development Goals (SDGs)
In 2015 and as part of the 2030 Agenda for Sustainable Development, the United Nations agreed on the Sustainable Development Goals (SDGs). These can be seen as a universal call to end poverty, protect the planet and ensure prosperity at an international level.
The SDGs provide a comprehensive framework for promoting economic sustainability by setting indicators for sustainable development with a total of 17 development goals and 169 targets. Companies can contribute to achieving the SDGs by aligning their business processes with these targets, e.g. by investing in clean energy technologies and sustainable infrastructure to combat the climate crisis (SDG 13 - Climate action).
Green Finance: Financial Paths to a Sustainable Future
Protecting the environment and climate is a task not only for companies, but also for the world of finance. The term "green finance" established in this context refers to investments in environmentally friendly projects and companies that help to reduce environmental pollution and promote a sustainable future. Green financial instruments such as green bonds and sustainable investment funds enable investors to invest in climate-friendly and sustainable projects while generating financial returns.
Companies, on the other hand, can raise capital for green investments by issuing green bonds. And thereby demonstrating their commitment to environmental sustainability. Governments, meanwhile, have the opportunity to use green financing through policy measures (e.g. tax incentives, subsidy programs). They can encourage investments in environmentally friendly projects and accelerate the transition to a low-carbon economy.
Responsible Leadership: Sustainability as a Guiding Principle
In order for companies to implement a successful sustainability strategy, they need managers who cultivate a responsible management style and act in a value- and sustainability-oriented manner. Responsible leadership should therefore also be understood in particular as providing impetus for communication and interaction. It is questioning company processes and examining and, if necessary, modifying their ethical, economic and sustainable principles. Decisions should be made in the interests of a sustainable future, away from short-term financial success and towards corporate social responsibility.
The term responsible leadership therefore primarily refers to the ethical and long-term oriented actions of managers and decision-makers in companies that aim to achieve economic success without jeopardizing resources. This means that companies not only strive for short-term profit maximization, but also include social and environmental impacts in their decisions. Responsible managers strive for a balance between financial goals, environmental protection, and social responsibility. This approach is important to develop long-term stable and sustainable business models that serve the interests of both the company and society as a whole. It helps to strengthen stakeholder trust, improve the company's reputation, and create long-term value.
Energy Transition: Ecological Transformation for a Sustainable Energy Supply
In the context of "sustainability", there is no getting around the energy transition. The term "energy transition" refers to the transition from fossil fuels to renewable energy sources in order to ensure stability in the energy supply in the future. This transition aims to reduce dependence on limited and environmentally harmful resources while creating new opportunities for growth and employment. By promoting renewable energy, companies can benefit from stable and affordable energy prices while reducing environmental impacts and dependence on volatile energy markets. The energy transition is therefore a decisive step towards a sustainable and future-oriented economy and society that combines ecological, social and economic aspects.
The Need for Sustainable Development
The need for sustainable development is indispensable. It has to satisfy the needs of society without jeopardizing the needs of future generations ("justice for grandchildren") and it has to focus on the protection of natural resources. The first measures, plans and regulations have already been launched. Companies are addressing the issue of sustainability voluntarily or by decree, as well as realigning corporate goals and strategic processes.
The future of an environmental economy is characterized by a profound change in the way companies operate and create value. It encompasses a range of innovative approaches aimed at placing the concept of sustainability at the heart of economic decision-making. This includes the increased use of renewable resources, the promotion of circular production and the integration of environmentally friendly technologies and practices along the entire value chain. An ecological economy of the future not only strives for short-term profits, but also takes into account long-term environmental goals and the well-being of future generations. The urgency of this transformation lies in the need to meet the challenges of climate change and ecological degradation and to ensure a sustainable future.