ENG: „Volatile times for sustainability issues”: Where is green controlling now?

With the Green Controlling Study 2016 the current position of Green Controlling was levied. On focus were especially the changes since the 2010 study concerning the implementation level and the relevance of the green controlling. For the first time the management of social issues was considered.

Already at the beginning of the report the authors write about "volatile times for the sustainability issue". The sustainability issue has indeed gained in importance, but in the other hand other development areas are not to be overlooked. Trendsetting decisions at the climate summit in Paris were somehow lost among environmental scandals that at some companies "put in question the seriousness of sustainable development at company level significantly". Parallel the pressure of regulations to publish non-financial information (for example, environmental and human resources issues) increases. At the same time, we observe fall in commodity prices such as petroleum, which may be harmful for the business case of sustainability.

Meeting customer needs, enhancing corporate image
The second Green Controlling Study of the ICV has shown that the strategic importance of sustainability has increased in the companies compared to the year 2010 – even if less than expected five years ago. In corporate management, sustainability has matured recently. Under a "grown-up" approach, the authors understand that the economic benefits are now at the forefront, but also the social responsibility and the fulfillment of legal obligations are crucial. It was also clear that the sustainability strategy of a company is decisive for how the green controlling is configured. In according to that, sustainable companies focus stronger on green controlling than companies that concentrate on the compliance.

Since the first study, the proportion of companies realizing a sustainable market-oriented strategy of "green products and solutions" has increased. "The fulfillment of customer needs and enhancing the company's image are among the main objectives to be achieved working by the ecological rules", says the study.

Also examined was where the main responsibility for sustainability lies in the company: This is not controlling, but the top management and the departments specializing in this area (for example, environmental management).

Measures- and reporting-oriented tasks

According to the study, among main motives for integration of controlling are the better financial evaluation of the sustainability measures and the provision of appropriate systems and processes by controlling. Lack of resources in controlling and the conscious avoidance of the controlling integration were named the main barriers to the integration. Executives look for support while making environmental and social decisions by providing KPIs and report information.

Companies with a holistic green strategy require elements of very comprehensive support, also within the framework of the strategy development and implementation.

The majority of the surveyed companies considered the future responsibility for the green controlling as inclusive, it means as a shared responsibility between corporate controlling and sustainability management. The main tasks of green controlling include especially those characterized as action- and reporting-oriented tasks.

The study also shows that the controlling often misses the capacity to acquire green controlling tasks or the integration of the controlling is even undesirable. Thus, the authors conclude: "The management of many companies apparently does not see the controllers as partners for green controlling. Here, the controllers should even more advertise for their sake to get involved in the implementation of environmental and social objectives in the enterprise. In addition, the controlling should network more with the departments, which deal with sustainability issues. These include both the environmental management and the HR department. "

„Green Controlling 2015/16 – where are we after 5 years? – Position und challenges of integration of environmental and social issues in controlling from the controlling practice point of view - results of a study of the Expert Work Group Green Controlling of the International Association of Controllers (ICV) ", International Association of Controllers, Expert Work Group Green Controlling, April 2016, Editorship: Karl-Heinz Steinke, Dr . Sebastian Berlin, Alexander Stehle

The study report can be purchased for a nominal fee of 20 EURO at the ICV Office. For The ICV members can exclusively download the report for free on the website.

The International Association of Conrollers (ICV) has in Germany, Austria, Switzerland, Poland and 12 other countries in Central and Eastern Europe around 6,500 in practical Controlling active members. The key objective of ICV controlling philosophy is reaching permanent economic success. With its honorary chairman Dr. Albrecht Deyhle the association, founded in 1975 has shaped the Controlling in German speaking countries placed and influenced. The ICV merges controllers, CFOs, managers and scientists and  it is strictly oriented its members’ benefit. Experience, communication and being focused  on future-oriented trends are foundations of ICV. ICV combines practical experience with the latest research results and prepares its knowledge for practical implementation. The ICV is makes personal contribution to the success of its members and to the sustainable performance of companies. Siegfried Gänßlen is the chairman of ICV, CEO of Hansgrohe SE, Schiltach, Vice-Chairman of ICV is Prof. Dr. Heimo Losbichler, FH Steyr.

For more information:

• H.-P. Sander, Presse ICV, EASTWESTCOM, Lachen-Birkenallee 16, D-86911 Diessen am Ammersee, Tel. +49-(0)8807-94 90 94, presse{bei}icv-controlling.com
• ICV expert work group Green Controlling (Leader): Sebastian Berlin, sberlin@ipri-institute.com
• ICV Office, Münchner Str. 8, D-82237 Wörthsee, Tel. +49-(0)8153-88 974-20
• www.icv-controlling.com