Setting new standards instead of standard solutions

Challenge

A variety of different sustainability issues were to be integrated into the corporate strategy of an Italian confectionery manufacturer.

Approach

In the sustainability perspective, we reached 2,400 stakeholders through a conjoint-based stakeholder survey, who rated 28 topics in terms of sustainability relevance. Thus, each topic was rated about 4,300 times.   

We also compared the stakeholders’ subjective assessments with impact analyses at company and product level along the entire value chain.  We conducted these analyses with our proprietary tool estell. 

This interim result of sustainability relevance was discussed and validated with structured interviews and workshops.  

In addition, 35 decision-makers assessed the business relevance of the themes based on value drivers – efficiency, brand value, resilience and innovation – and anticipated business potential. Based on this, the level of ambition of the themes was finalised with 13 managers in two management workshops.

At the end of the project, there was a clear strategic framework and overarching strategic guiding themes that summarised the overall goal of the confectionery manufacturer in the area of sustainability and were translated into a concrete roadmap.  

Result

With the project, Systain developed a clear strategic framework on the topic of sustainability, through which the company was able to define its strategic fields of action to ensure its future viability. 

Challenge

An international retail group with more than 50,000 employees and a turnover of over 13 billion euros wants to redevelop its group-wide sustainability strategy. 

Approach

The sustainability strategy was further developed in two parallel work streams. On the one hand, we developed concrete content with the Group: the overarching vision, fields of action, KPIs, targets and measures. Secondly, we dealt intensively with governance – on the topics of decentralised control, collaboration, empowerment and incentivisation.  

Through an agile process, the work results were developed iteratively by involving different stakeholders, e.g. through sounding boards with management (top down) and piloting with group companies (bottom up). The work streams were controlled centrally by a project management office (PMO). 

Result

The final result was a decentralised management system that takes into account the individual responsibility of the Group companies and their specific business models, as well as enabling centralised control according to overarching and consolidated Group goals. In order to ensure a group-wide exchange of knowledge, topic-specific Group-wide Expert Circles were also initiated, which bring together representatives from the various specialist departments of the respective Group companies. An IT-based solution has been developed to manage and control the success of the sustainability strategy and regular reports are submitted to the Executive Board. 

Challenge

Covestro AG is a listed materials manufacturer with almost 17,000 employees and a complex supply chain. Human rights due diligence is to be implemented in the company’s own business operations and in the value chain.

Approach

In 2018, we compared the company’s external reporting on the topic of human rights with the regulatory requirements in Germany and in the international context. Through this gap analysis, we developed appropriate recommendations for action. 

In another project, we conducted a comprehensive risk analysis on human rights risks in the value chain. This enabled us to identify the human rights issues of highest relevance and derive improvement measures. 

Most recently, in 2020, we supported the company in developing a management system to fulfil the core elements of human rights due diligence. We also developed a manual for the implementation of human rights due diligence in the various functional areas of Covestro.

Result

Through the various projects, Systain was able to create transparency for Covestro on regulatory requirements in Germany and in the international context on the topic of human rights, identify the human rights issues of highest relevance, derive improvement measures and develop a management system for implementing human rights due diligence.

Challenge  

An international engineering company with over 20,000 suppliers wants to make supplier management more sustainable. What human rights risks exist in the supply chains?  For this purpose, the company is looking for an efficient procedure that also meets the requirements of the German Supply Chain Due Diligence Act.

Approach

With our proprietary tool estell, supply chains can be analysed quickly and efficiently with a uniform procedure. The only data required from the company are purchasing values per year, as well as information on suppliers and commodity groups. With our estell methodology, human rights risks are thus made transparent per supplier, but also per risk topic, country and value chain level.

The client received comprehensive transparency on the human rights risks of its sourcing of goods. In addition, we provided clear transparency on the originators of the risk – by value chain stage (at the direct supplier, in the lower supply chain, at the raw material) and topic (child labour, occupational safety, etc.). The mechanical engineering company was able to view these insights in an interactive visualisation tool.

Result

A prioritisation of the suppliers with the highest risks serves the client as a basis for implementing the requirements of the German Supply Chain Due Diligence Act and for risk management in the supply chain. The transparency of the risk analysis also formed the basis for a risk-based derivation of measures depending on the risk profile of the suppliers and the value chain.

Challenge  

A client has to conduct an annual human rights risk analysis of its direct suppliers according to the German Supply Chain Due Diligence Act. He was looking for a viable risk analysis procedure that complies with the new Act. 

Approach  

In a concept phase, we developed a procedure for risk analysis taking into account the adequacy criteria of the national Act. For this purpose, the existing data on direct suppliers and actors in the deeper supply chain (e.g. production sites, raw materials) were identified. This internal data was combined with Systain’s risk indicators and value chain information (e.g. origin of raw materials) to design the risk analysis. We also worked with the client to develop how risks should be weighted and prioritised. This close exchange ensured buy-in from the relevant contact persons as well as early identification of interfaces to follow-up processes.  

We took over the preparation of the complex company data (over 10,000 suppliers) for the risk calculation and visualised the results.

Result 

To implement the Act’s requirements, the client now has a tool for annual risk analysis that can be updated largely independently of Systain. The client thus obtained a high degree of transparency on risks – also in the deeper supply chain – and knew which measures have priority and should be initiated.

Challenge 

If human rights risks have been identified in a company’s own business or in the supply chain, they must be minimised with effective measures and, in the best case, eliminated. 

Approach 

We support a company holistically in establishing a process for the risk-based derivation and control of measures. Taking into account the requirements of the German Supply Chain Due Diligence Act, we first identified relevant measures such as training, self-assessments or audits. We evaluate these in terms of their impact, feasibility and implementation effort. In addition, risk clusters were identified, such as suppliers with a human rights risk through the use of a risk raw material. By allocating the measures to the risk clusters, we created the basis for a selection of precisely fitting measures that address specific risks. 

At the same time, we created security of action for the company through clear internal processes and guidelines. To ensure that the measures are implemented according to the specifications, we also designed and implemented a controlling concept that enables impact measurement and reporting in accordance with the requirements of the German Supply Chain Due Diligence Act. 

Result  

Together with the company, we implemented a concept for the risk-based derivation and control of measures in order to fulfill the requirements of the national Act, to adequately address the human rights risks in the supply chain and in the business area and to realistically implement them.   

Challenge   

Many of our clients need to embrace the requirements of the German Supply Chain Due Diligence Act and understand, among other things, which processes need to be adapted accordingly. 

Approach  

First, we establish in-depth knowledge in the company about the requirements of the new Act in moderated workshops. Through structured interviews and document checks, the status quo of the current implementation in the company is then illuminated. Essential gaps and suitable starting points for the adaptation of processes are identified. Benchmarks and the company’s level of ambition then provide the framework for concrete fields of action and corresponding target images. In interactive workshops, we show the company how due diligence can be implemented efficiently and sustainably in the long term, based on our experience and knowledge of best practices.  Finally, we develop concrete roadmaps including an assessment of internal efforts, responsibilities and a time schedule. In this way, our clients receive certainty of action for the timely and appropriate implementation of the legal requirements in the company. 

Result   

Companies gain an in-depth understanding of the new national Act and where there is a need to adapt processes and structures. Clear objectives and roadmaps give them the confidence to successfully implement human rights due diligence.  

Challenge

A leading life science company with headquarters in Germany and locations worldwide commissioned us to develop a climate protection strategy for the company (locations, company cars, transport, business trips). 

Approach

We first drew up an initial balance sheet of CO2 emissions and shed light on the main drivers. We then conducted interviews and workshops with individual locations and business units to identify suitable measures. We determine their contribution to climate protection, examine the requirements for feasibility, as well as costs and benefits. In doing so, we also drew on our many years of experience regarding potentials, possible obstacles and approaches to solutions as well as success factors. We also took into account the future development of the company and how emissions will develop accordingly.

Result 

An ambitious climate protection strategy with eight fields of action was developed, which is backed up with concrete measures. The roadmap with the measures includes an assessment of costs and benefits as well as CO2 reductions and the definition of responsibilities within the company. The climate protection strategy was adopted by the Executive Board.

Challenge

A Swiss mechanical engineering company with a turnover of >10 billion EUR wanted to determine its Scope 3 (upstream) greenhouse gas emissions and set a reduction target. A calculation approach for Scope 3 based on life cycle assessments would have been too costly and incomplete.

Approach 

The company decided to determine the emissions with the help of our proprietary tool estell. For this purpose, the company provided the monetary purchasing data with commodity groups and country of manufacture. We modelled the data and calculated and analysed the emissions. The client had a dashboard to perform in-depth analyses by business unit, commodity group, country, supply chain level and more. 

In order to determine how improvement measures and business growth affect greenhouse gas emissions, we created reduction scenarios in a second step. In this process, possible measures were evaluated with regard to jointly developed criteria. Based on these reduction scenarios, we developed a reduction target for Scope 3 together with the company. 

Result

The mechanical engineering company gained transparency about the hot spots in its supply chain including suppliers, business units and product groups. Based on these analyses as well as development scenarios and the evaluation of measures, a fact-based climate protection target could be defined.

Challenge  

A company from the food retail sector would like to find out how it can achieve its science-based climate targets in individual product ranges (focus on fruit and vegetables) in the form of an action roadmap.

Approach 

We rely on the following building blocks for the solution:

• Collection of measures and GHG impact analysis
• Assessment of the feasibility of the measures with the involvement of the relevant departments 
• Building quantitative greenhouse gas reduction scenarios
• Derivation of action roadmaps 

We used our proprietary quantification tools estell and estell harvest to derive a fact-based prioritisation of attractive and cost-effective measures. This not only takes into account the mitigation potential of the measures, but also market developments, regulatory requirements, decarbonisation of the electricity mix and projected business growth.

Result 

By incorporating internal structures for implementation and our deep understanding of food production supply chains, we have developed an effective roadmap for achieving the set climate targets, defined minimum requirements for suppliers and identified potential lighthouse projects with transformational character.

Challenge 

Monitoring the GHG footprint, especially in the supply chain, is a major challenge for many companies. A large German retailing company commissioned Systain to design a pragmatic accounting system that consistently and completely maps the annual changes in the GHG footprint of the supply chain and builds on available data systems within the company.

Approach 

A one-fits-all solution for GHG accounting in supply chains is not yet available on the market, so we developed a company-specific solution in which we took into account the industry, positioning and, above all, the specific company structure and data availability.  

Together with the retailing company, we first evaluated external data sources and methods for collecting GHG emissions in supply chains and compared these with possible measures and the necessary available internal data in the company.  

On this basis, we derived recommendations for the development of a baseline model for GHG emissions recording in Scope 3.1, which is strictly oriented towards the criteria of the GHG Protocol which is able to reflect market developments and implemented measures to a sufficient extent. We also defined interfaces between external emission factors and internal activity data at product, supplier and assortment level for later implementation.

Result 

The retailing company received a GHG accounting concept tailored to its business, which is able to show the annual emission changes in different perspectives and is oriented towards the accounting guidelines of the Greenhouse Gas Protocol and the SBTi. 

SIEMENS uses our measurement tool to record CO2 emissions from 10,000 suppliers and to get to climate protecion along the supply chain one step closer.

Source: https://www.youtube.com/watch?v=p1ziC2xcoIY © Siemens AG, 2020

Challenge 

Our online retail client wants to empower consumers to make more sustainable product choices in order to reduce the environmental and social impacts associated with their product range. To achieve this, an overarching goal was defined to offer more sustainable products. Implementation has been difficult in terms of external credibility, as there is currently no clear requirement for labeling.

Approach 

We developed clear criteria that enable our client to identify sustainable product alternatives as such. In developing the criteria, we took into account the requirements of external stakeholders, the level of ambition of the company, as well as the availability of measures within a range.  

Depending on the assortment, different criteria were defined in order to address the relevant impacts of the respective assortment. 

As a result, our client developed a good understanding of the significant environmental or social risks posed by their products and more accurately identified sustainable product alternatives. 

Result 

We enable our customers to identify sustainable products and make them credibly recognisable as such to consumers. The clear definition of the criteria makes it possible to control the achievement of objectives transparently and uniformly in purchasing and category management.

Challenge 

Since 2015, EDEKA and WWF have been working on a joint cultivation project in Spain with the aim of making orange cultivation more environmentally friendly.  They wanted to find out with us: How can the environmental impact of orange cultivation be reduced through the project measures and how are these potentially positive effects to be evaluated in comparison to organic cultivation?

Approach

Based on primary data on yields, water consumption, pesticides and fertilisers used, we calculated the environmental effects of the orange farm before the start of the project (baseline) and after the start of the citrus project. For this purpose, data over several years were considered in each case in order to compensate for annual differences due to weather events and the associated differences in yield. For this LCA analysis, GHG emissions, airborne and waterborne pollutants, land use and water consumption were considered.

 In doing so, we evaluated the various environmental effects with external costs according to common recommendations, e.g. of the Federal Environment Agency.  This allowed EDEKA and WWF to compare the environmental effects with each other (e.g. how damaging water consumption is compared to GHG emissions). It also allowed them to estimate the economic costs of the environmental impacts compared to the price of the oranges.  

 In addition, we used secondary data to analyse how the environmental effects of organic orange cultivation differ from those of conventional cultivation.

Result 

The analysis enabled EDEKA and WWF to evaluate the positive effects of their cultivation project and to compare it with organic cultivation. In addition, the analysis of the organic cultivation allowed the identification of potential improvements that could be incorporated into the citrus project in the future and contribute to a further reduction of environmental effects.