Writing a sustainability report is often seen as an onerous requirement and a drain on time and resources. How much extra work did you have to do for this report? What resources were required?
Röders: As an automotive supplier, we had a considerable advantage because we are already fully certified. Our certifications include the quality management standard according to IATF 16949, the environmental standard according to ISO 14001, the occupational safety standard according to ISO 45001 (in development) and the energy management standard according to ISO 50001. Thanks to these established management systems, we have adopted a PDCA cycle (Plan-Do-Check-Act) mindset.
The process of planning, implementation, review using key figures and corresponding actions is familiar to us and integrated into our operating processes. This approach has considerably simplified our work on reporting, as we were able to utilise existing structures and processes and therefore required fewer resources to prepare the report.
Schüttler: If we look at the time frame, it has taken us around 6 months to finalise the first draft of the report. This is now being revised in line with the feedback from the DNK, for which we are planning an additional month. During this time, however, none of those involved have worked full-time on the report.
The process is characterised by data collection and collaboration between different departments and locations, which naturally takes time. The entire effort now relates to the development of the initial report. In the following years, it is possible to build on already established processes and collected data. It is common practice to only review and update aspects such as the materiality analysis on an annual basis or to expand them if necessary. In any case, this requires fewer resources than the initial development.
On the Sustainability Code platform, for example, there is a function for transferring a text from the previous year's report to the current one so that it can then be revised. Experience and knowledge grow with each year, which is why it can be assumed that the effort required will be reduced.
G.A. Röders is a company that has been very familiar with sustainability issues for some time now - an ideal prerequisite for a sustainability report. What challenges did you still face? And what did you learn from them that could help other companies in advance?
Röders: The biggest challenge for us was defining the stakeholders and key aspects. As a manufacturing entrepreneur, I am of course closely linked to my product. However, the requirements of the report go far beyond the product, which can be particularly challenging for SMEs.
We encountered difficulties because we lacked a clear systematisation. We had not previously asked ourselves such specific questions about our position and interaction in society. In our case, the previous identification of stakeholders and key aspects came naturally through our close connection with the Luneburg Heath. For future reporting cycles and for other companies, it is certainly helpful to deal extensively with such questions at an early stage in order to create a solid basis for reporting.
Schüttler: One of the challenges was that risk analyses and assessments did not systematically cover the entire supply chain until now. My impression is that, in view of the geopolitical tensions of recent years, supply chain issues have become increasingly important for SMEs, for example in terms of resilience and security of supply, but sustainability aspects have tended to take a back seat. Although many companies are aware of the overarching risks in their supply chains, reporting requires systematic analysis and, for example, underpinning with risk management systems in order to fulfil the requirements of the DNK and later the ESRS.
A key component of the sustainability report is the sustainability strategy. What did you emphasise in your strategy?
Von Hülse: The fact that G.A. Röders has been operating successfully on the market for around 200 years is already proof of sustainability to a certain extent. Many of the facets of sustainability have been practised by us for a long time, even if they have not been explicitly written down. A key component of our sustainability strategy on site is social commitment, particularly in the form of employing skilled labour and training new junior staff.
In addition, aspects of raw material procurement and, in particular, the optimisation of our processes are important components of our sustainability efforts.
To what extent has the reporting process influenced your existing sustainability strategy?
Von Hülse: The process has sharpened many of the existing endeavours. It has also become clear that many of the measures need to be systematically documented in order to make them more visible. This process has motivated us to think ahead and possibly expand existing approaches. The systematic documentation and concretisation of sustainability efforts not only enabled transparent external communication, but also strengthened internal awareness and commitment to sustainable corporatmanagement.
Röders: I completely agree with that. Putting information in writing often provides more clarity and structure. By defining a company policy, you take an important step towards self-reflection and accountability.
With MARS, G.A. Röders has now reached an important milestone towards transparency and accountability. How do you see the future? And what needs to be ensured within the political arena in the future?
Röders: We are confident about the future because we manufacture products that are essential for a sustainable world. We see ourselves as an integral part of this sustainable world and are therefore happy to produce a sustainability report that documents our position.
With a view to political developments and future requirements, I would like to see a certain amount of trust placed in small and medium-sized enterprises, without overwhelming them with excessive bureaucratic hurdles. For small(er) companies, there is only a limited amount of regulations and requirements that can be implemented, although many of our sustainability efforts are also realised outside of a formal report.
Furthermore, the requirements should not only be realistic and realisable in terms of quantity, but also in terms of content. As a medium-sized company, it is difficult to ensure due diligence right down to the mining region. We must therefore be able to rely on German and European guidelines to ensure that our suppliers act sustainably in the broader sense.
In this context, I am in favour of sensible and well thought-out moderation in the regulatory landscape. This also fits in well with the principle of sustainable business...
Schüttler: I am very much looking forward to finalising the report soon. I am convinced that it is a very good report that will be very exciting for many stakeholders and for the sustainability journey ahead. At MARS, we pursue the important goal of preparing SMEs for CSRD and establishing reporting processes in companies. We support companies from the materiality analysis to data collection and the development of report content. I hope and believe that we have now mastered this well together with G.A. Röders for the DNK.
