Use case: Green controlling

Sustainability performance management with Valsight

Companies are obliged to make a “green contribution”. Valsight supports you in the financial evaluation of your sustainability strategy and its integration into enterprise performance management.

UN Agenda 2030, European Green Deal, EU taxonomy, the German Bundesklimaschutzgesetz – the requirements for professional management of the sustainability contribution of companies are increasing. Companies are required to develop a sustainability strategy and to disclose their contribution to sustainable management on the basis of KPIs. Sustainability is thus becoming an essential component of enterprise performance management.

Sustainability as a business opportunity

Regulatory developments on sustainability are opening up new future prospects for companies. Controlling, with its expertise in planning, managing, and monitoring financial performance, is called upon to expand its scope to include the evaluation of sustainability performance. In this context, it is important to think about the topic of sustainability beyond pure reporting and to tap economic earnings potential across business units, including the identification of new sustainable business models.

Become the driver of sustainability in your company

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Controlling as a driver of sustainability

Sustainability is more than climate protection. In addition to ecology, according to the UN Agenda 2030, it includes the economic and social aspects, all of which contain specific sustainability goals. All three areas must be brought into harmony. What is sustainable is what promotes at least one sustainability goal without violating the others. This means that promoting the environment at the expense of economic efficiency or social aspects is not sustainable, and vice versa. In the future, companies must therefore act in an environmentally friendly, socially responsible and profitable manner at the same time.

Implementing this triple bottom line “people, planet, profit” means understanding it as an integral part of all corporate decisions and activities. Sustainability is a cross-sectional function and task across all areas of the company. As the process owner of enterprise perfomance management, controlling is predestined to drive and shape sustainability transformation and management in companies.

In order to achieve set sustainability goals, e.g., the reduction of CO2 emissions independently of corporate growth, sustainability planning must be integrated into business planning. Controlling must derive quantified sustainability KPIs that pay off in terms of the overarching economic goals. In addition, it is necessary to determine new KPIs that reflect the achievement of social and ecological goals.

Integrating sustainability into enterprise performance management

From “how to comply” to “how to add value”: Forward-looking enterprise performance management focuses on the financial evaluation of the sustainability strategy beyond mere reporting. A complete anchoring of the topic of sustainability in enterprise performance management includes not only reporting, but above all planning and control (including monetary incentivization). Depending on the degree of implementation, the appropriate steering approach can be set up and various effects of measures can be simulated flexibly.

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Customized simulation model for sustainability management

Wherever your company stands on the topic of sustainability – together we define, simulate and test the right performance management model for you. As experts in simulating financial KPIs and defining the underlying value drivers for different business models, we support you in answering relevant questions such as:

What impact do defined sustainability goals have on the business model?

How can business model-relevant sustainability goals be translated into financial KPIs?

What are the underlying sustainability drivers?

How do business measures impact set sustainability goals and KPIs?

How can sustainability reporting be optimally linked to enterprise performance management?

What new business opportunities does sustainability offer your company?

Your Benefits

Understanding and visualizing the links between operational activities and sustainability KPIs

Conversion of defined sustainability targets into financial KPIs

Creation of a transparent calculation and driver model, respectively

Simulation of effects of set measures

Flexible, simple, industry-agnostic

Green controlling with Valsight

Get to know the advantages of Valsight in the area of green controlling in a free initial consultation with our experts.

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Increased flexibility

Scenarios in Valsight build on basic data that are extrapolated into the future in combination with various assumptions. Within seconds, new scenarios can be created and simulated by selecting or deselecting the underlying assumptions. The user-friendly interface makes it quick and easy to adjust parameters, so additional dimensions, such as countries or products, can be added at any time without having to change the basic formula-based calculation logic.

Transparency about effects

The formula language used in the graphical driver model is easy to understand even without in-depth knowledge of controlling. In the Scenario Manager, the hub for simulations, the underlying assumptions are also clearly assigned to the scenarios. Assumption bridges offer additional evaluation options by showing the effective effect of a premise on a specific key figure.

Fact-based discussion

The graphical driver model and the flexible ad hoc simulation of new scenarios promote fact-based discussions in management meetings. New insights can be taken into account immediately during the discussion, which is why the effects on a wide range of variables of a business model are transparently shown in real time. The focus of the discussion is thus exclusively on substantive aspects, such as assumptions or the effects of measures on which the financial scenarios are based.

Possible fields of application

With Valsight, you can map, visualize and make understandable the relationships between measures and effects on sustainability KPIs in a matter of seconds. Based on a calculation model that we create together with you and that you can subsequently change and expand as needed without IT knowledge or external support. For effective sustainable performance management.