Ms. Herzog-Kuballa, Blue Competence is the sustainability initiative of the mechanical and plant engineering industry. What goals is the VDMA pursuing with it?

Judith Herzog-Kuballa : Mechanical and plant engineering is needed - whether it's to curb climate change or to produce in the sense of a circular economy. The technologies of this diverse industry play a central role in achieving sustainability goals. Blue Competence makes these solutions visible through success stories. At the same time, the initiative aims to invite people to 'follow suit' and further promote the anchoring of sustainability in mechanical and plant engineering by encouraging and supporting companies in mastering the growing sustainability challenges. The twelve sustainability principles of the mechanical and plant engineering industry provide an initial orientation. Another helpful tool is the cross-industry ZVEI-VDMA Code of Conduct.

How can the topic of sustainability be strategically anchored in the company?

Judith Herzog-Kuballa : There is no 'one size fits all' solution for this because it has to be adapted to the respective structure of the company. However, it is important that sustainability is strategically anchored in the first place, not in parallel with the business strategy, but in the central business strategy. A business strategy that does not address the three ESG areas of environment, social affairs and governance can hardly survive on the market today or in the future. It is important that the strategy is supported from above and below, that concrete goals, processes and measures are derived from it and that responsibilities are created. Where and how this is implemented should be decided depending on and in line with the company structure.

And we would like to emphasize one last point. Implementing sustainability or a sustainability strategy is not a project. This megatopic will be with us and humanity for a long time to come and will not disappear the day after tomorrow or in ten years' time. It is a long journey that we are embarking on and, in terms of the challenges, we are still pretty much at the beginning. Starting with climate targets in the direction of climate neutrality can be a first and essential step towards implementing ESG requirements.

What obstacles need to be overcome on the road to climate neutrality?

Judith Herzog-Kuballa : As with many issues, the devil is in the detail. Once a company has decided to operate in a climate-neutral way, the first step is to define who is responsible for implementation within the company. The most common misconception - especially among SMEs - is that the path to climate neutrality can be taken by individual employees 'on the side'.

Creating a carbon footprint, i.e. recording the current situation, and setting your own climate targets and strategies with concrete measures not only requires specific knowledge, but also a certain amount of time. The issue of accessibility of data for preparing a climate balance sheet is a key challenge and one of the biggest obstacles on the road to climate neutrality.

In addition to a clear division of responsibilities, a decision must be made as to whether climate neutrality should be achieved for the entire company, individual locations or business units or even product lines. It is important to discuss these decisions in advance in order to avoid potential obstacles.

In addition, it has been shown time and again that it is not only important to communicate the company's own climate neutrality to customers, investors and other stakeholders, but also not to forget internal communication. Employees are the multipliers of their own company. It is important to communicate internally what the path to climate neutrality looks like, what this means for the company and its employees and how each individual can or must contribute.

In general, numerous obstacles can be avoided in advance through open communication and a well-structured approach and planning. The VDMA practical guide 'Climate-neutral production: Recommendations for action in mechanical and plant engineering' provides our members with guidance on embarking on the path to climate neutrality with this in mind.

Sustainability is often used to cultivate an image, also to attract skilled workers. How can applicants and potential customers be sure that the company in question is making concrete efforts?

Judith Herzog-Kuballa: By carrying out detailed research: is there a sustainability strategy, how are ESG issues addressed, what does the company's code of conduct look like, how important are employees, where does the company stand in terms of climate-neutral production and what does its social commitment look like. In other words, applicants need to find out. Customers are already doing this. However, customer inquiries are made in a variety of ways. The non-standardized evaluation platforms used by large companies in particular generate a lot of effort without any real added value. An accredited system on the one hand and a more risk-based approach instead of using a scattergun approach to survey all suppliers would be desirable here.

VDMA at the SPS 2022: Hall 3, Stand 458