by Christian Underwood,
Co-founder and CEO of strategy consultancy StrategyFrame®AI
A remarkable trend has been observed in recent years: sustainability and ESG (environmental, social, governance) have increasingly taken a back seat in many corporate strategies. What was once considered a forward-looking priority is now often treated merely as a regulatory obligation. But now is precisely the time to view ESG not as a burdensome requirement, but as a strategic lever – at all levels of the company.
Why ESG has disappeared from strategy – and why that is dangerous
Many companies perceive ESG reporting as an administrative burden that primarily aims to meet the growing demands of regulators, investors, and stakeholders. The problem is that if ESG targets only appear in compliance reports, they are not anchored in operational business – and thus have no effect. As a result, sustainability becomes a compulsory exercise rather than an opportunity.
Yet pioneers such as Pfisterer, GEA, and other "hidden champions" are demonstrating that ESG can be much more than that: they have not only integrated sustainability into their brand positioning, but also into their business model – thereby creating anti-fragile structures. These companies are winning not only the competition for customers, but also the competition for talent.
Impact Statement statt Purpose: ESG in der StrategyFrame Methodik
In the StrategyFrame methodology, we deliberately do not rely on classic mission statements or purpose statements. Instead, we work with an impact statement – a clear answer to the question of what impact a company wants to have on the world. Sustainability is not a separate issue here, but an integral part of this impact.
An impact statement such as "Sustainability must take place at all levels" permeates the entire strategy work:
- Situation analysis: Sustainability is not viewed in isolation, but analysed as a factor in customer needs, market potential, trends, and framework conditions. It is not only about what the market demands, but also about how the company can strengthen its position through sustainable action.
- Target vision & winning proposition: The impact statement provides a clear guding star that also supports differentiation from the competition. Sustainability becomes part of the winning proposition, not just an add-on.
- OKRs & areas of action: ESG goals must be operationalised. Only when sustainability goals are anchored in OKRs (objectives & key results) can concrete initiatives and measurable progress be achieved. Without this step, ESG remains nothing more than lip service.
The opportunity for investor relations: ESG as a strategic narrative
This opens up an exciting opportunity for investor relations: ESG can – if communicated correctly – become part of the corporate narrative. Instead of communicating ESG as a regulatory footnote, it can be used as proof of resilience, sustainability and social relevance. Investors in particular are looking for companies that are capable of developing anti-fragile business models – organisations that benefit from volatility, uncertainty, and change rather than being broken by them.
Conclusion: ESG belongs back at the heart of strategy
Sustainability must not disappear into reporting tables. It belongs at the heart of corporate strategy. Companies that see ESG as a strategic competitive advantage not only ensure regulatory compliance, but also gain market share, talent, and trust.
The examples of Pfisterer, GEA, and others show that ESG is not a cost factor, but a driver of innovation. It is up to us to start this engine – and investor relations can play a key role in this.
