Transparency should be part of every company’s DNA
In business, sustainability means acting in a way that safeguards the future while taking account of the climate, environment and social sustainability, and following good practices. “Openness and honesty create transparency, which becomes part of a company’s DNA. Being sustainable is about more than just one product, you have to assess the business model lying behind it – what’s the business’s overall impact,” says Outi.
When Outi began to establish Lovia nine years ago, many of the concepts underlying sustainable development and the circular economy had yet to arrive in Finland. “Looking for used materials was a kind of pioneer work. I started by calling people and knocking on doors, asking them what kind of waste they had and wondering what could be made from it,” says Outi, describing the first steps taken by her company.
The strong core of a sustainable business is a sustainable business idea and operating model. All companies should understand the impact of their activities: how they affect the surrounding world and society.
“A couple of years ago, we completed a project for Lovia in which we calculated the carbon footprints of our company and products. We achieved a deep understanding of how to delve deeply down to the level of detail. For example, we included the products’ business environment and manufacturer-related elements, such as energy sources and the origins of materials. There are no benchmarking standards for calculating carbon footprints, which has to be done company-specifically,” Outi emphasises.
Calculation of Lovia’s carbon footprints revealed that the carbon footprint of a certain bag made from recycled materials was 3.33. The figure would have soared to 66 if the same bag had been made using the same production technology, but with new cowhide leather instead of recycled material. “It was truly important for us to see that we can make a difference. We can have an impact,” says a delighted Outi.
Customers are looking for sustainability promises
Some companies may be afraid of making sustainability promises. After all, consumers are well informed nowadays. Outi wants to make life easier for all entrepreneurs in this respect: “We can never achieve anything or learn anything new if we’re afraid to make mistakes in sustainability. We need to have ambitious targets. We may stumble every now and then, but that’s okay,” says Outi.
“We’re all human. With dialogue and empathy, we can move ahead and develop together. Customer feedback can be treated as a mirror or even a gift for companies: thank you for telling us where we can improve. It’s a wonderful form of dialogue!”
Sustainable business – does it improve or weaken the bottom line?
How does sustainability affect a business, including the company’s financial results? “I see this as the difference between the new and old world. We have lots of companies that have an old-world, linear economy mindset. This is an immense burden and characteristic of intensive farming, for example,” explains Outi.
“The question of whether business will suffer often arises in discussions of sustainability. I would counter this by asking whether we can rethink sustainability and view it as a productivity factor,” Outi proposes.
Outi believes that we are at an inflection point as a society and companies. “Now is the time to be creative. We should challenge how we think about the economy and business models. Is the result just about euros or – important as euros are – could it also be about how we impact on our ecological or social environment? What kind of impact and result will we achieve?” says Outi, reflecting on current and new approaches to economics.
“I have no doubt that, while earning euros, we can also take account of the planet’s limits,” Outi explains, with leaders and entrepreneurs in mind.
If you want to establish a company with sustainability at its core – how would you start out, Outi Korpilaakso?
“An entrepreneur should begin by clarifying their own sustainability-related values. On what basis can business activity be sustainable? Sustainability can’t just be an add-on – it must be included in the business model and be part of the vision and mission. Without a mission at heart, you’ll soon lose momentum,” says Outi.
