Towards a Typology of Sustainability Practices: A Study of the Potentials and Challenges of Sustainable Practices at the Firm Level
Abstract
:1. Introduction
2. Theoretical Background
3. Research Design
4. Findings
4.1. Sustainability Practices
4.1.1. Inspire and Inform
“When you look at all these [SDG] targets, you’re like: ‘What does this have to do with our business? How can we relate it to what we do?’ We’re attending the first workshop I’ve seen targeted the textile industry, to figure out how we direct our activities towards the SDG goals.”(Sustainability Officer, case H)
“After the SDG bootcamp for the executive level we held a series of internal workshops in order to boil down the activities even further, asking: How can this goal materialize?”(Sustainability Manager, case K)
4.1.2. Productize
“The function of our products is that you can find rest and immerse yourself, which is a social element that kids need. An activating learning space was introduced because you can’t use a ‘one size fits all’ approach to children’s learning life. With this concept we supply school furniture and planning advice so the children can work in groups or sit by themselves and immerse in a book. There’s hard furniture, soft furniture, high tables and low ones.”(CEO, case D)
“We’re launching a new catalogue in 2019 and in this we’ll present recycled polyester and BCI cotton; a sustainable cotton, not organic. That’s a choice we’ve made, even though many customers demand organic cotton because they think that’s the best.”(Sustainability Officer, case H).
4.1.3. Co-Create
“We work in partnerships to secure a sustainable business model. (…) Recently, we were contacted by a brand who wants to collaborate with us around making bags and apply our take-back process.”(Founder and CEO, case P)
“We initiated a project with the purpose of changing a cost to an income. Some people said: ‘That’s impossible–there’s always been a cost linked to getting rid of waste’. Yes, but now we’re setting the bar high. We established a work group to help think about our waste in a different way–and that resulted in a partnership with [a partner firm] who takes off fractions of our waste.”(CEO, case O)
4.1.4. System Building
“Some of the bigger banks have expressed interest in working with us but we’ve politely declined. We can’t keep our integrity and work with them at the same time. I hope this will push the bar.”(Impact Investment Advisor, Case M)
4.2. Potentials and Challenges Related to the Sustainability Practices
4.2.1. Inform and Inspire
Potentials
“The municipalities we’ve spoken to are really interested in sustainability; they say it’s good we focus on sustainability because then they can profile themselves as a sustainable municipality which will attract families. We would never have entered the procurement with [the local] municipality if it wasn’t for our sustainability focus. […] And we make good profit with [the collaboration].”(CEO, case D)
Challenges
“Imagine if we had a sustainability employee who’d just sit and work on this. But we don’t have the resources. And it’s an important point because, if you were interviewing [big Danish corporate], they wouldn’t even think about such resource challenge. But the case is different for small and medium sized firms like us, which represent the majority of firms in Denmark.”(CEO, case D)
“How can we at all communicate this internally? What does it mean when we say [case D] is sustainable? We can’t take off and give 12 different explanations. We have to be concrete also when we communicate externally.”(CEO, case D)
“It [changing the internal culture] is still difficult, we’re still on a journey. But we’re translating it [the SDG framework] into something that people can understand, ‘Be thoughtful about the resources’, that’s something that has always been there.”(Sustainability Manager, case K)
4.2.2. Productize
Potentials
“There’s a change going on in consumers’ behavior, they demand the firms live up to something greater. We’re spending our money more and more with firms that make a positive difference in the world. Firms need to look at it from a monetary perspective, doing good is good business.”(Creative Director, case G)
Challenges
“When the shops have to decide whether they want to go with the budget friendly jacket, that’ll give them a high profit, or the more costly but sustainable jacket, they go with the one they can earn money on. And at the same time, they’re arguing the customers do not demand the sustainable option. Well, they were never given the choice!”(Founder and CEO, case P)
4.2.3. Co-Create
Potentials
“There’s a huge market here [for circular construction products], since the customer segment is growing. These are people who know what they want and are not willing to compromise. But there’ll be a lot of brick layers and entrepreneurs who’re going to hate them. If there could be a way to handle this, there’s a big market waiting ahead.”(CEO, case A)
Challenges
“We buy pigments from a supplier in France and [following the shift to become a circular firm] suddenly they had to handle far more paperwork than they were used to. And we’re one of their smallest customers. […] It was pretty tough to get them onboard. I mean, they didn’t care about our accounting processes.”(CEO, case A)
“These things [practices towards a more sustainable business] obviously have economic consequences and eventually this is a business, so if we don’t sell anything we might as well just close down. So, it’s a matter of finding the right balance; how big a step should we take each time, in order to act responsibly.”(Sustainability Manager, case N)
4.2.4. System Building
Potentials
“There’s a huge potential in this [impact focused bank products]. You’ve got to remember what is financed by a bank. The underlying universe that’s represented by the bank is gigantic and so important. As has been pointed out before: the way in which capital is placed within the next 5 years will influence life on earth for the next 100!”(Impact Investment Advisor, case M)
Challenges
“They [big firms] just don’t care. They’re just men in suits. I mean, the world is led by men in suits, and they just want to earn some money! They’re completely indifferent. So, the strategies we’re making [to try and push changes in these old-fashioned structures in the detail industry] has to involve marketing, because they like to “say” that they are [practicing sustainability].”(Founder and CEO, case F)
5. Discussion
6. Conclusions and Limitations
Author Contributions
Funding
Acknowledgments
Conflicts of Interest
Appendix A
Themes | Theoretical Background | Semi-Structured Interview Questions |
---|---|---|
(1) Firm’s understanding of sustainability and the UN Sustainable Development Goals | Linnenluecke et al., 2009; Patzelt & Shepherd, 2011 | What is your firm’s understanding of sustainability? What is your firm’s understanding of the UN Sustainable Development Goals? How do you understand the relationship between sustainability and the UN Sustainable Development Goals? |
(2) History of engaging with sustainability and perceived relevance for the firm’s development | Adner & Zemsky, 2006; Bansal, 2013; Grayson & Hodges 2017; Kaupi & Hannibal, 2017; Zollo et al. 2013 | How do you know about sustainability and the UN Sustainable Development Goals? Why and when have you started working with sustainability and the UN Sustainable Development Goals?
|
(3) Work examples related to sustainability | Linnenluecke et al., 2009; Rizos et al., 2012 | How do you work with sustainability and the UN Sustainable Development Goals? Do you have specific plans to further work with sustainability? Do you face specific barriers to work with sustainability? Do you have specific plans to further work with the UN Sustainable Development Goals? Do you face specific barriers to work with the UN Sustainable Development Goals? |
(4) Potentials and challenges faced when engaging with sustainability and the UN Sustainable Development Goals | Günzel-Jensen et al. 2020; Hahn et al., 2014; van Zanten & van Tulder, 2018 | Which potentials does the firm see in working with sustainability (on the company and industry level)? Which potentials do you see in working with the UN Sustainable Development Goals?
|
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Firm | Industry | Size | Description | Category of Sustainability Practice | |||
---|---|---|---|---|---|---|---|
Inspire and inform | Productize | Co-create | System building | ||||
Knowledge and communication practices related to sustainability are present internally in the firm. Sustainability is not part of the business model. | Sustainability is part of design and production processes. The firm works to integrate sustainability into the business model. | The firm enters partnerships with suppliers and/or external actors to improve supply chain sustainability. Sustainability is a key component in the business model. | Sustainability is in the DNA of the firm. Practices aim at changing or influencing the industry and are not necessarily justified through profit. | ||||
A | Trade | Micro | Produce mortar for the construction industry | - | (x) | x | - |
B | Industry | Micro | Process waste material into raw material | - | (x) | x | - |
C | Knowledge Service | Medium | Architecture firm | x | (x) | - | - |
D | Industry | Small | Produce school furniture | x | x | (x) | - |
E | Knowledge Service | Small | Provide AI technology for health care sector | - | - | - | x |
F | Knowledge Service | Micro | Develop and install horticultures on commercial buildings | - | (x) | (x) | x |
G | Knowledge Service | Medium | Design bureau | (x) | x | - | - |
H | Trade | Medium | Produce work uniforms for food, health and social sector | x | x | - | - |
I | Trade | Large | Produce interior textile | (x) | x | (x) | - |
J | Water Supply and Renovation | Large | Combustion and waste management | (x) | (x) | x | - |
K | Water Supply and Renovation | Large | Waste and recycling management | x | (x) | - | - |
L | Trade | Small | Produce lighting solutions | - | x | (x) | - |
M | Finance and Insurance | Medium | Bank | - | - | (x) | x |
N | Trade | Large | Supermarket chain | (x) | (x) | x | - |
O | Industry | Medium | Produce acoustic boards | - | (x) | x | x |
P | Industry | Micro | Produce jackets made of upcycled leather | - | x | x | (x) |
Q | Water Supply and Renovation | Small | Process marine plastics into raw plastic granulate | - | x | x | (x) |
Category of Sustainability Practice | Firms | Description of Practice | Illustrative Examples in the Data |
---|---|---|---|
Inspire and inform | C, H | Internal initiatives with the aim of informing and inspiring, such as talks, workshops or language | “We have tried (to talk more about sustainability internally), since I got convinced that this is a way for us moving forward. Now people talk more about it. And we just had a get-away for all employees across offices, 80 people, where I gave a presentation about the SDGs.”–Sustainability and Innovation Officer, case C |
H, K | Attend external learning and inspiration initiatives | “After the SDG bootcamp for the executive level we held a series of internal workshops in order to boil down the activities even further, asking: How can this goal materialize?”–Sustainability Manager, case K | |
D | Employ intern to help identify potential match between existing business activities and SDGS | “We’ve have had a sustainability student and she was tasked with evaluating our activities to identify the extent to which they meet any of, or specific [SDG] goals.”–CEO, case D | |
Productize | D, G, H | Include sustainability in the product design | “We’re launching a new catalogue in 2019 and in this we’ll present recycled polyester and BCI cotton; a sustainable cotton, not organic. That’s a choice we’ve made, even though many customers demand organic cotton because they think that’s the best.”–Sustainability Officer, case H |
I | Continuous testing within upcycling of waste material | “We’re currently testing how to recycle broken yarn, or excess fibres. We just launched [product name] which is a fabric made of 45% recycled wool. And how to recycle products used by customers into new products.”–Sustainability Manager, case I | |
L, P | Operate with take-back-models on product or packaging | “We used to deliver the lamps on pallets with several forms of packaging to protect the product. That left the customers with excess waste. Now we deliver in wooden boxes that are returned to us or can be recycled.”–Sustainability and sales responsible, case L | |
“You can rent a jacket for three months, or you can buy it with a repurchase guarantee.”–Founder and CEO, case P | |||
Co-create | A, J, N, P | Partner with other areas of expertise, industry or sector with the aim of increasing sustainability | “In Lisbjerg we’re part of a project called [project name]. A house designed to be reused with 90% of its original materials, e.g., instead of using the usual concrete in the foundation, we use chalk mortar.”–CEO, case A |
“We’re part of scientific environments and let students use our recycling centres in their work. We contribute with knowledge about waste and environment and have some high-profile experts from our development and environment department to sit on these projects.”–Sustainability Manager, case J | |||
“We have a partnership with MSC (certificate for sustainable fishing) and then we feature their products in our flyer and communicate which SDG goal the products support.”–Sustainability Manager, case N | |||
B | Business model built on waste fragments from other companies | “Say, a firm that produces coats or jackets. They’ll generate a lot of offcuts which usually get burnt. But instead of burning it they send it to us; we process it, produce e.g., a new lining that they can use for the jackets. This way we help them reduce the purchasing and costs of raw material lining. And they become waste free.”–CEO, case B | |
A, B, P, Q | Apply to circularity processes and certification | “What matters is that we think in a circular way.”–Founder and CEO, case Q | |
System building | E, M, O | Practice advocacy and education of the external environment | “We could earn a lot of money on being less ethical and spend less time on educating people. But ethics is core in what we do, and we want people to be able to ask ethically strong questions.”–Founder and CEO, case E |
“I go out and teach other firms how they can get started with sustainability, circularity and the 17 SDGs based in the experience we’ve acquired. Because it hasn’t all been a walk in the park.”–CEO, case O | |||
F | Lead and run a zero-waste gardening system for commercial buildings | “We’ve developed this technical concept where a horticulture leverages excess energy from the building it is built on top of. The horticulture then supplies the building directly with products. We remove the supply chain and are creating a brand around that called ‘From here’, not ‘Local’ but, even closer.”–CEO, case F |
Description of Potentials | Firms | Description of Challenges | Firms |
---|---|---|---|
Inspire and Inform | |||
A sustainable approach enforces strategizing towards long-term impact | C | Many firms reach for the SDGs as a tool to help introduce more sustainable practices but, translating the framework into actual business practices is difficult | C, H, K |
Business opportunities and customer demands are present | D, H | The sustainability concept is experienced as something abstract which complicates internal and external communication | C, D |
Acquiring knowledge and understanding of a new field demands resources | C | ||
Productize | |||
Strengthen employer brand | G | Scaling requires resources | L |
Business opportunity and customer demands | G, L | It is difficult to price compete with sustainable products | P |
Maintain reputation as innovative brand | I | ||
Co-create | |||
Structural and cultural changes hold big business potentials | A, N, Q | Circularity creates additional paperwork | A |
Costs | N | ||
Business opportunity and customer demands | B, N, O, Q | Old-fashioned industry norms | O, A, P, Q |
System building | |||
Big scale impact potential | M | Old-fashioned industry norms | F, O, M |
Ability to influence the industry | O | The SDGs risk diluting the purpose of foundationally sustainable firms | M |
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Jacobsen, S.S.; Korsgaard, S.; Günzel-Jensen, F. Towards a Typology of Sustainability Practices: A Study of the Potentials and Challenges of Sustainable Practices at the Firm Level. Sustainability 2020, 12, 5166. https://doi.org/10.3390/su12125166
Jacobsen SS, Korsgaard S, Günzel-Jensen F. Towards a Typology of Sustainability Practices: A Study of the Potentials and Challenges of Sustainable Practices at the Firm Level. Sustainability. 2020; 12(12):5166. https://doi.org/10.3390/su12125166
Chicago/Turabian StyleJacobsen, Simone Søgaard, Steffen Korsgaard, and Franziska Günzel-Jensen. 2020. "Towards a Typology of Sustainability Practices: A Study of the Potentials and Challenges of Sustainable Practices at the Firm Level" Sustainability 12, no. 12: 5166. https://doi.org/10.3390/su12125166
APA StyleJacobsen, S. S., Korsgaard, S., & Günzel-Jensen, F. (2020). Towards a Typology of Sustainability Practices: A Study of the Potentials and Challenges of Sustainable Practices at the Firm Level. Sustainability, 12(12), 5166. https://doi.org/10.3390/su12125166