WELCOME TO the first-ever Pricing for the Planet Week - DAY 1
From Nov 4th to Nov 8th
Sustainability, where to start and what to do?
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DAY 1 - AGENDA
Welcome to Day 1 of the PricingForThePlanet Week!
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Each day, we’ll share a page like this featuring the week’s roundtable discussion (Part 1) and a series of related webinars / Q&A. You can explore the session summaries and key takeaways or dive into the full video by clicking the play button.
We hope you find this content inspiring and that it encourages you to take even bigger steps toward sustainability.
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If you encounter any issues, feel free to reach out to us at info@pricingfortheplanet.com.
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Please use your free access to our Pricing For The Planet online community to ask questions and to network (see bottom section of this page)
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Enjoy!
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​Part 1
Rountable: Transforming Green Initiatives into Financial Gains - Dream or Reality?
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Speakers:​
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Key Takeaways:​
1. Exploring Green Initiatives as Financial Gains
The kickoff discussion centers on the question: Can sustainability be profitable? Christian and Sean explore ways to monetize sustainable practices, moving beyond the notion that sustainability is merely a cost. This session emphasizes real-world cases where companies have successfully turned green efforts into competitive advantages.
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2. Industry Examples of Sustainable Competitive Advantage
Examples of successful sustainable models include:
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IKEA: Established a circular business model by refurbishing and reselling furniture.
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Dr. Martens: Initiated a circular model to extend product life.
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Schneider Electric: Integrates sustainability deeply into its business model for competitive advantage, a subject for deeper exploration later in the week.
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Automotive Sector: Forced by regulations to transition toward electric vehicles, companies like Michelin innovate with durable, airless tires that reduce waste and offer consumers a lower total cost of ownership.
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3. Sustainability in Pricing and Business Models
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Shifting from Cost-Plus Pricing to Value-Based Pricing is essential for companies to align with consumer expectations and willingness to pay.
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The traditional “break-fix” approach is evolving toward servitization (offering products as a service), exemplified by Rolls-Royce’s Power-by-the-Hour for aircraft engines, where payment is based on usage rather than ownership. This model fosters alignment between provider and customer for long-term product efficiency.
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4. Importance of a Hybrid Workforce
To effectively pursue sustainable transformation, companies need hybrid expertise: professionals who understand both sustainability and their core craft such as pricing or supply chain for example. Building teams with diverse skill sets in monetization, ESG, and industry-specific knowledge enables a comprehensive approach to sustainability.
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5. Role of Aftermarket Services in Profit and Sustainability
Companies are recognizing the untapped potential of aftermarket services (e.g., parts replacement and extended service contracts), which offer twofold benefits: faster revenue growth and improved sustainability through extended product lifespans.
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6. Syncron’s Approach to Sustainable Profitability
Syncron’s software solutions focus on reducing downtime and optimizing parts availability, extending equipment life and reducing waste. They help clients balance cost efficiency with sustainability by reducing air freight needs and offering strategic pricing for extended service contracts.
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7. Tailoring Sustainability Initiatives to Customer Expectations
Successful sustainability initiatives are rooted in understanding consumer expectations. Instead of offering products without customer alignment, Syncron and Ducker Carlisle recommend grounding sustainable strategies in research, such as gauging consumer willingness to pay for greener options.
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Aha Moments:
1. Sustainable Transformation as a Complete Business Model Shift
This sustainability shift requires more than just product adjustments; it’s a transformation of business models, particularly in sectors like automotive and heavy equipment. Companies are moving toward subscription models, integrating sustainable goals with long-term revenue strategies.
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2. The Hybrid Workforce Concept
The idea of combining skills from multiple disciplines (e.g., pricing and ESG) into a unified role underscores the need for flexibility in hiring. Sustainability must permeate all functions rather than exist as a separate team.
3. Customer-Centric Sustainability as Key to Success
Successful transformations are customer-driven, starting with a deep understanding of customer perceptions and expectations around sustainability.
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Watch the full video:​​​
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WEBINAR
Sustainability, where to start and what to do with Nicolai Broby Eckert, Senior Partner, Simon-Kucher & Partners and Author of "The Demand Revolution: How Consumers Are Redefining Sustainability and Transforming the Future of Business"
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Key Takeaways:
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The Fatal Disconnect Between Consumers and Companies:
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One of the most significant gaps in sustainability efforts is the mismatch between what companies offer and what consumers want. Companies often believe consumers are willing to pay a high premium for sustainable products, while in reality, most consumers are looking for affordable, accessible green solutions.​​
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Consumer Segments Are Complex:
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Nikolai highlights that consumers are not a monolithic group. His research identifies eight distinct consumer archetypes based on their sustainability commitment. These range from green champions willing to pay more in all categories to non-believers who aren't interested in sustainability at all. Understanding this segmentation is critical for businesses to target the right audience with the right products.
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Sustainability is a Major Value Driver:
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According to Nikolai’s research, 62% of consumers consider sustainability a top-three purchasing factor, alongside price, quality, and brand. This demonstrates that sustainability is no longer a niche consideration but a major factor in consumer decision-making across different product categories.
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The Demand Revolution:
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The shift towards sustainability is not just a trend—it’s a demand revolution, where the majority of consumers are looking for sustainable products. Companies need to acknowledge this shift and innovate accordingly to meet this demand while also making green products more affordable.
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Barriers to Adoption:
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While consumers want green products, barriers like affordability, availability, and confusing green claims (greenwashing) prevent them from making sustainable choices. Companies need to remove these barriers by making sustainability easy and transparent.
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Strategic Plays for Companies:
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Nikolai introduces six strategic plays for companies to adopt in their sustainability journey:
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Longevity: Focus on creating durable products that last longer (e.g., Bang & Olufsen's design-for-life philosophy).
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Brand Play: Position sustainability at the core of your brand (e.g., Patagonia, Porsche).
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Mass Affordability: Reduce the cost of sustainable products for the masses (e.g., Tesla’s push for affordable electric cars).
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Anti-Waste: Minimize waste across the product lifecycle (e.g., soda companies focusing on reducing plastic use).
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Ease of Choice: Simplify green product availability and make it easier for consumers to choose sustainable options.
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Engagement: Involve consumers in your sustainability journey through loyalty programs, co-creation, and honest communication (e.g., LEGO’s approach to customer engagement).
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Regional Differences in Responsibility:
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Consumers from different regions hold varying beliefs about who is responsible for sustainability. In Scandinavia, people expect local politicians to take action, while in Southern Europe, consumers feel they have a personal responsibility.
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Sustainability is a Consumer-Driven Megatrend:
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Unlike traditional technology-driven trends, the sustainability shift is entirely consumer-driven. This makes it imperative for businesses to respond quickly, as consumers are already adopting green behaviors en masse.
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Aha Moments:
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Consumers Will Invest Time for Green Choices: One striking insight is that when consumers decide to go green, they’re willing to invest significant time researching the best sustainable products and brands. This is a huge opportunity for businesses to capture consumer attention and loyalty through clear and honest communication.
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Sustainability is Not a Niche: The realization that sustainability is not just for a small segment of "green champions" but for the majority of consumers was a key "aha" moment. This consumer shift means that businesses can no longer afford to treat sustainability as a side initiative; it must be central to their strategy.
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Strategic Shifts, Not Just Products: The discussion around dismantling old, profitable business models in favor of sustainable, long-term strategies was another major takeaway. It’s not just about launching new products; it’s about transforming entire ecosystems.
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Surprising Demographic Findings: Contrary to popular belief, younger consumers are not necessarily more committed to sustainability than older generations. This was a surprising insight, showing that sustainability spans across age groups and income levels.
These insights provide a clear roadmap for businesses looking to succeed in sustainability and meet the growing consumer demand for green products. The session underscores the importance of both internal alignment and external consumer engagement in driving meaningful change.
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To go further: The Demand Revolution on LinkedIn
Follow Nicolai on LinkedIn
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Watch the full video:​​​
WEBINAR
Return on Sustainable Investment with Tensie Whelan, Founding Director - Center for Sustainable Business, NYU Stern
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Key Takeaways:
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Sustainability Drives Financial Performance:
Tensie Whelan emphasizes that sustainability is not just about ethics or environmental concerns—it can drive significant financial benefits. By focusing on operational efficiencies, better risk management, and employee engagement, businesses can see real financial returns from sustainability initiatives. -
The ROSI Model (Return on Sustainability Investment):
The ROSI model helps companies understand the financial value of their sustainability strategies. It identifies nine key drivers of financial performance, such as operational efficiency, risk mitigation, sales and marketing benefits, and employee engagement. By tracking both tangible and intangible benefits, companies can make better, data-driven decisions to invest in sustainability. -
Barriers to Effective Sustainability Investment:
Many companies fail to invest in sustainability at the necessary speed and scale because they don’t fully understand the potential value it can create. They often focus on compliance or short-term financial metrics, missing the long-term financial gains and risk mitigation sustainability can provide. -
Materiality in Sustainability:
Companies need to focus on the sustainability issues that are most material to their business. If they invest in issues that aren’t directly relevant to their industry, it risks being seen as greenwashing. Identifying the right material issues helps companies drive real impact and avoid superficial efforts. -
Sustainability and Operational Efficiencies:
Sustainability strategies often lead to enhanced operational efficiency. Tensie gives several examples, such as automotive companies that saved millions through waste management strategies and pharmaceutical companies that reduced environmental impacts while saving costs through green chemistry initiatives. -
Consumer Demand for Sustainable Products:
Sustainability is no longer a niche market—sustainable products are growing twice as fast as conventional ones, often commanding a price premium. There is significant demand across all demographics, and companies that offer sustainable choices can capture market share and improve profitability. -
Water Management and Hidden Costs:
Many companies underestimate the cost of water in their operations. For example, a pulp and paper company that used "free" water ended up paying millions in energy costs to heat, cool, and dispose of it. Proper water management strategies can save significant costs and mitigate risks. -
Private Equity and Sustainability:
Private equity firms are starting to see the value in embedding sustainability into their portfolio companies. By focusing on sustainability-related operational efficiencies, private equity can unlock both financial and societal value. -
Challenges in Big Company Change Management:
In large companies, embedding sustainability into core strategies requires changes in compensation structures, capital allocation, and operational approaches. Sustainability needs to be integrated into the company’s DNA to drive meaningful change, with accountability at the highest levels of leadership.
Aha Moments:
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Sustainability as a Strategic Imperative:
The realization that sustainability can be a major driver of financial performance, not just a cost, is a game-changer for businesses. It highlights the importance of investing in sustainability not just for compliance, but as a strategic advantage.
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Data is Key:
Tensie stresses the importance of granular data and analysis. Companies often lack the financial lens to properly assess the benefits of sustainability, leading to missed opportunities for investment. Accurate data can help companies understand the full value of sustainability initiatives.
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Sustainability is Not Just a Trend:
Consumer demand for sustainable products is a powerful force, and companies that ignore this shift risk falling behind. Sustainability is not just a short-term trend—it’s a long-term demand revolution driven by consumers, not just regulators.
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To go further: Check out the NYU Stern Center for Sustainable Business
Follow Tensie on LinkedIn
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Watch the full video:​​​
BONUS
Q&A with Mathilde Rodie - Head of Investor Relations and Sustainable Finance at Danone​
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Key Takeaways:
1. Defining Sustainable Finance at Danone
Mathilde Rodie oversees both investor relations and sustainable finance at Danone. Her work in sustainable finance is centered around measuring, managing, and transparently reporting Danone’s sustainability efforts. Sustainable finance is about quantifying and tracking extra-financial performance, such as COâ‚‚ emissions, biodiversity, and water impact, to demonstrate how sustainability contributes to Danone's long-term value creation.
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2. Career Path in Sustainable Finance
Mathilde’s background in financial markets exemplifies how professionals without formal sustainability degrees can transition into impactful sustainability roles. As sustainability became a focus in financial markets about 15 years ago, investors began to consider these issues in assessing a company’s value. She emphasizes that the role of investor relations in sustainable finance is to bridge the gap, showing investors how sustainability contributes to value creation.
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3. Integrating Sustainability Metrics and Reporting
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Measurement and Transparency: A critical step in sustainable finance is setting quantifiable metrics (like CSRD for sustainability reporting). Danone focuses on metrics that reflect significant areas of impact (health, nature, social) in its “Danone Impact Journey,” linking sustainability performance with the business strategy.
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CSRD Compliance: Danone adheres to CSRD (Corporate Sustainability Reporting Directive), using it to ensure transparency and provide stakeholders—internal teams, investors, NGOs, and suppliers—with clear sustainability data. This comprehensive approach aids stakeholders in understanding Danone’s trajectory in areas like sourcing, supply chain, and environmental impact.
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4. Danone’s Longstanding Sustainability Commitment
Danone’s commitment to sustainability traces back to 1972, with a vision of balancing productivity with social and environmental responsibility. In 2022, the “Danone Impact Journey” was launched, solidifying this approach around three core pillars—health, nature, and social impact—to guide all business decisions. Danone’s strategy is embedded within its business model, ensuring every operational decision, from sourcing to sales, considers both financial and sustainable outcomes.
5. Sustainability as a Business Resilience and Competitive Advantage
Danone’s sustainable practices enhance business resilience and grant it a competitive edge:
-Resilience: For instance, sustainable water practices in Morocco ensure milk production quality amid water scarcity, helping maintain stable sourcing despite climate challenges.
-Regulatory Compliance and Market Access: Meeting health-related regulatory standards (e.g., low-sugar products) ensures compliance and strengthens market access, as seen in the UK and Mexico.
-Competitive Advantage in Pricing: Sustainability contributes to a competitive edge, even if it's not directly priced into products. Effective communication of sustainable practices helps differentiate Danone in the market.
6. Embedding Sustainability across the Organization
Mathilde emphasizes that sustainability should not be isolated within a specific department but embedded throughout the company. Starting with cross-departmental integration, it’s crucial to involve all employees in the sustainability journey to shift mindsets and foster collaboration. Setting targets collaboratively rather than imposing them top-down builds internal support and demonstrates sustainability as a contributor to the company’s overarching value creation.
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Key Advice for Companies Starting Their Sustainability Journey
Mathilde’s core advice for companies:
-Involve Everyone from the Start: Sustainability should be embedded across all levels of the organization rather than confined to a single department.
-Build a Long-term Vision: Align sustainability goals with the company’s business strategy, acknowledging that business and sustainability timelines often differ.
-Emphasize Value Creation: Highlight sustainability’s role in creating both immediate and long-term value, ensuring that employees see it as beneficial to their roles and the organization’s success.
Where to Learn More:
For more on Danone’s sustainability journey, visit Danone’s website to access resources like the Danone Impact Journey and the Integrated Report, which provide detailed insights into their sustainability strategy, impact goals, and compliance with CSRD.
Follow Mathilde on LinkedIn
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Watch the full video:​​​
Don't let the digital format hold you back from networking!
By joining this event, you have a free access to our Pricing For The Planet online community, where you can:
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Ask live questions and respond to open discussions on the platform
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Connect with others and start meaningful conversations
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Access exclusive content throughout the week
So, no more excuses—head to our online platform, start networking, and ask your questions!
Continue the journey with us!
We’re excited to launch our community-driven learning platform, The PricingForThePlanet Leanring Platform, designed to fill the critical skills gap at the intersection of business and sustainability.
Extensive research and conversations with leading headhunters have shown that the ability to monetize sustainability will be one of the most highly valued skills in the near future.
Join us as we empower professionals to turn sustainable practices into profitable strategies, driving both environmental impact and business growth.
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