Nicole Koch, managing director aprentas

Sustainability – competitive advantages must be earned

Regulatory requirements in the area of sustainability are increasing significantly and are tying up noticeably more resources within companies. The real challenge lies not only in complying with individual requirements, but in understanding new requirements, setting priorities and deploying resources in a targeted manner. Competitive advantages do not arise automatically. They must be actively developed and require effective collaboration between different functions within the company.

The pace of regulatory developments in the field of sustainability has increased significantly in recent years. This trend is not limited to Switzerland and the EU, but also affects numerous other countries. For companies operating internationally, this significantly increases regulatory complexity.

The regulatory consolidation is most evident in Europe. The spectrum ranges from deforestation-free supply chains, through communication guidelines and packaging requirements, to reporting and disclosure obligations. Examples include the Deforestation Regulation (EUDR), the Empowering Consumers for the Green Transition Directive (EmpCo), new packaging requirements (PPWR), and reporting and disclosure obligations such as the CSRD and the EU Taxonomy. Sustainability is no longer a voluntary commitment, but a binding obligation. What will be decisive is companies’ ability to assess regulatory requirements at an early stage, recognise their relevance and deploy limited resources in a targeted manner. Competitive advantages arise where prioritisation, implementation and interdisciplinary collaboration are successful.

The trend towards increased regulation serves a legitimate purpose. Clear and workable guidelines create transparency and set parameters for sustainable business practices. However, developments at European level have shown that individual proposals have technical shortcomings and have been revised, postponed or only seemingly simplified. More precise and simpler regulation would provide companies with tangible relief and facilitate implementation. Industry and trade associations also have a role to play here.

Sustainability is not, however, merely a regulatory issue. For innovative companies such as Sika in particular, the opportunity lies in combining environmental benefits with high performance and tangible benefits for customers. Circular value creation is evident, for example, in recyclable materials, longer product lifespans and a more economical use of raw materials. To achieve this, sustainability must be integrated at an early stage into strategic decisions, product development and other business processes

Sustainability and the circular economy will shape economic development in the long term. Compliance with sustainability requirements does not automatically confer competitive advantages. Clear leadership, consistent prioritisation and close, interdisciplinary coordination are crucial. At the same time, sustainable action in many companies is not merely a reaction to regulatory requirements. It is also based on their own motivation to align innovation, resource efficiency and long-term value creation closely with sustainability goals.

Martin Waser*

Head of Legal Sustainability & Regulatory Governance, Sika

*The views expressed in this article are my own and do not necessarily reflect the position of my employer.