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Sustainability has become more than a marketing buzzword behind which existing business models and business processes remain unchanged. Nevertheless, important questions remain unanswered about the definition, measurement and implementation of sustainability goals. How can perspectives for sustainable companies be shown?

Open questions on implementation

Listed companies are sending out clear signals when they announce that they will only purchase electricity from renewable sources in the future or take greater account of climate protection in their asset management. However, in politics as well as in science and business, important questions regarding implementation, roles, responsibility and cost allocation are still open. A typical example is the emissions tax for greenhouse gases (also known as the CO2 tax): Although trading in emissions certificates has become established within the EU, especially since the Paris Climate Agreement in 2015, and has thus enabled market-based pricing, a tax on emissions is still under discussion.

Measuring sustainability – but how?

On the one hand, sustainability is achieved by offsetting the consumption of resources (example: reforestation of cleared forests) and damage caused by production and consumption (example: wastewater treatment plants). On the other hand, sustainability increasingly also means avoiding production and consumption with harmful consequences. But how can this be measured? Indicators, such as those related to pollutant emissions, largely ignore how the costs incurred can be “correctly” attributed to the polluters. Behind this is the problem known in economics as external effects, namely that the polluter does not usually bear the full costs of manufacturing his or her products, but passes them on to the general public.

Solution approaches: Close to the market and as little bureaucracy as possible

Imperfect information leads to a “bias” against market-based pricing as well as fiscal and environmental policy objectives when emissions are taxed. The trading of certificates is intended to avoid this problem by setting prices that are close to the market. In addition to the appropriate attribution of external effects, a quantity target (e.g. production quantities of fossil fuels or other scarce resources) is also aimed at. Ethical parameters can also be taken into account, e.g. different damage costs per ton of CO2, depending on how strongly the welfare of people in the future is valued.

Managing the future is sustainability management

By purchasing and selling services in which sustainability certificates are priced in or which reflect the avoidance of polluting substances and activities, the value chain continuously gains in sustainability. moderning supports you in this process by analyzing and evaluating the interactions between the framework conditions and your strategic options. The future scenarios developed with you show the range within which the performance rendered under sustainability aspects is worthwhile or innovative alternatives should be developed.