Sustainability concerns everyone, especially companies

We all want a more sustainable world, and it will take everyone to get there: politicians, the economy, the public, and indeed companies. Companies have a major influence on whether sustainable development is a success. Let’s take a manufacturing company as an example: it doesn’t just determine how environmentally friendly the manufacture of goods is or how long lasting they are, it also determines the working conditions of its employees and the living conditions of the people near its production sites. It also creates rules and processes designed to ensure the company is transparent, ethical and responsible.

Focus on sustainability criteria

To put it another way, companies can take on more responsibility for sustainability at three levels: environmental, social and governance. In this day and age, companies can’t afford to just be a financial success. Instead, customers and investors expect companies to recognize the environmental and social impact of their business models and to adapt to the requirements of sustainable development. Companies increasingly need to measure themselves by how well they meet sustainability criteria.

What role do banks play on the road to a sustainable economy?

A big one – even though banks themselves are only responsible for low levels of direct emissions. They don’t have production facilities or a large fleet. However, financial institutions can help to manage financial flows in such a way that the economy becomes more sustainable overall – for instance by offering their customers sustainability-focused products, or by investing money in bank accounts in areas geared towards ESG criteria.

In our interview, Thomas Jakob, Head of Sustainability, details what PostFinance’s understanding of sustainability is and how PostFinance intends to shoulder responsibility.

Sustainability is a big word – but what does it mean to PostFinance?

Sustainability for us is about taking on responsibility: whether as an organization for our employees and our operations, as an investor when our investments are funding emissions, for our market services, and as a partner in the Swiss financial center, which we want to help shape for the better. We incorporate environmental, social and governance aspects into our catalogue of targets – in other words, all three ESG dimensions. We focus on six core areas where we want to make a difference: firstly, at PostFinance itself, and secondly, in our business. For all these areas, we have set out tangible, ambitious targets that we have embedded in PostFinance’s strategy.

Ambitious in what way?

We want our customers to see us as a company that is exceptionally sustainable compared to the rest of our sector. We’ll know we have accomplished this when our customers say: PostFinance is right for me. We want our customers to have this positive attitude towards our products, our employees and the brand itself. When it comes to products, investment is a good example: our customers can choose between conventional products and products with a sustainability focus. Freedom of choice gives people a good feeling, which we want to be able to provide in other areas, such as retirement planning, savings, mortgages or payment transactions.

PostFinance’s climate goals are also ambitious.

I’d even go as far as to say they’re progressive. We want to be carbon neutral in our in-house operations by 2030, and from 2040, Swiss Post Group is aiming for net zero emissions across the entire value chain.

What leverage does PostFinance have to be more environmentally sustainable?

The greatest environmental leverage we have is our own investments. The money we invest is responsible for more than 95 percent of our CO₂ emissions. 

How do customers benefit if PostFinance sets itself these sustainability goals?

For one thing, PostFinance is embracing its responsibility as a company in Switzerland and is doing its bit to make Switzerland more sustainable, both environmentally, socially and in terms of governance. Everyone benefits from this. We also want to enable our customers to make an informed decision as far as sustainability is concerned when they choose their product. Our customers should be able to choose. We don’t want to tell our customers what to do, but support them. 

What is PostFinance doing to reach the sustainability goals it has set itself?

We will translate the goals embedded in our strategy into action plans over the coming years. To do this, we need the whole organization to pitch in. This is because the transformation to a sustainable PostFinance will only be a success if every unit and every single employee is part of this sustainable development.

Employees as the key to success: how will PostFinance involve them on this journey?

By engaging them in the topic of sustainability and working with them to spearhead processes for greater sustainability. As an example: if we want to offer more products, such as the savings account, with a sustainability focus, we need to work with all the relevant teams on how to improve the product in question to include sustainability aspects, or to look at whether we need innovations. This goes for Product Management, Risk & Compliance, right through to IT and Marketing. Implementing sustainable developments is a team effort.

What measures has PostFinance taken so far that will help it reach its sustainability goals?

In addition to investment products, where (as mentioned) we offer products with a sustainability focus, this will be a broad range of measures that help deliver on the various sustainability dimensions. By announcing the salary range in practically all job advertisements, for instance, we want to foster equality. With MoneyFit, we want to help boost the financial literacy of children and teenagers, which means we are taking on responsibility for knowledge development and education. Training our employees in anti-corruption and compliance will help us comply with governance guidelines.

What are the biggest challenges when it comes to sustainability?

We are active in an area with a great deal of regulatory requirements. Initiating and implementing projects in this environment that have a real impact, but without falling into the greenwashing trap, is a real challenge. Moreover, sustainability is always a bit of a balancing act, and it is impossible to do all three of the ESG dimensions complete justice at the same time. Let’s say a company is switching from transport by road to transport by rail. This will be good for the environment, but lorry drivers won’t have any more orders. It’s a case of an environmental interest versus a social interest. Passionate debates are unavoidable when it comes to sustainability. Every decision must be carefully considered. I try to always keep track of the bigger picture and to make bold decisions based on this. 

In your experience, what is the most important tip for companies embarking on the road to sustainability?

What matters the most to me is actually being willing to pursue this path as a company. The path is tough, there’ll be risks along the way, and it costs money. At the same time, there are a number of opportunities that may only materialize in the future. A careful consideration of these factors will help decide what path to take. The worst thing is doing a zig-zag because, every few weeks, you’re back to debating principles again. This is where I’m of the view it’s better to just make a start and make an impact somewhere than to spend all year considering what the best path for your company might be. It’s easier to steer and be in control when you’re on the move than when you’re staying put.