Six Pillars of Sustainable Value Creation –Insights from a Global Think Tank

In my recent article on ecodesign in filtration and its implications for supply chains and business opportunities, I came across a publication from the German Bertelsmann Stiftung: Wertschöpfung für das 21. Jahrhundert – Geschäftsmodelle in der Transformation (translated: “Value Creation for the 21st Century – Business Models in Transformation”). The Bertelsmann Stiftung is widely regarded as one of Germany’s leading think tanks. As an independent foundation recognized for its in-depth research on economic and social transformation, it has significant relevance both within Europe and internationally.

The report presents a Transformation Compass with six pillars to guide sustainable value creation. Below are the six themes in English. Each of these six themes offers a lens through which filtration companies can sustainably re-imagine value creation. Let’s examine them one by one in the context of filtration. The Six Transformation Compass Themes:

1. Environmental & Climate Protection

2. Material Cycles (Circularity)

3. Social Responsibility

4. Economic Resilience

5. Risk Management & Transparency

6. Sustainable Finance

Environmental & Climate Protection

For filtration companies, Environmental & Climate Protection involves adjusting products and operations to meet environmental objectives. This includes efforts to reduce the industry’s carbon footprint, such as setting targets for climate-neutral operations using renewable energy in manufacturing, reducing CO₂ emissions per filter produced, increasing energy efficiency in production, and ensuring filters assist users in meeting environmental regulations. Industrial filter manufacturers may also develop products intended to help clients achieve emissions targets. These environmental measures are regarded as factors that can drive operational change and innovation within the industry.

Philippe Wijns is Principal at CleverSustainability, and serves as a Filtration Expert and Sustainable Business Development Advisor. He is a Certified Expert in Sustainable Finance, Climate Finance, and Renewable Energy from the Frankfurt School of Finance and Management. He began with global leaders in the nonwovens industry before transitioning to the filtration sector, where he specialized in filtration technologies across a wide range of applications and markets – including industrial and automotive systems, HVAC, household appliances, medical and life sciences, as well as power storage solutions such as fuel cells, hydrogen systems, and battery separators.

Wijns recently founded CleverSustainability, a consultancy dedicated to sustainable business development to help companies develop and implement sustainability strategies, ensure compliance with the EU legal reporting requirements, and enhance their sustainable business growth, product portfolio and development, and market positioning.

Material Cycles (Circularity)

The Material Cycles theme, focused on circularity, is especially relevant to filtration, where products are often disposable. It promotes extending material life and reducing waste, encouraging designs for easy disassembly and recycling while avoiding hazardous materials. What about organizing take-back programs with recyclers to keep used filters out of landfills and improve resource efficiency, moving closer to a “zero-waste” model?

Some filtration firms are also adopting new models like servitization, or “Filter-as-a-Service,” leasing equipment and handling maintenance. This allows them to recover and recycle used filters, supporting circular material use, creating revenue streams, and strengthening customer ties while minimising waste.

Social Responsibility

While the filtration industry is technology-focused, it also involves considerations related to people, highlighting the importance of Social Responsibility. This theme refers to addressing the well-being of workers, communities, and society at large. For manufacturers, this includes implementing fair labour practices, maintaining appropriate working conditions, and upholding health and safety standards in production and throughout the supply chain. It also involves performing due diligence in sourcing materials. These efforts are consistent with the “triple bottom line” framework, which emphasises a balance among profit, people, and the planet. Engaging stakeholders, such as employees, customers, local communities, and even NGOs, in sustainability initiatives can foster trust and enhance product quality. For instance, a filter manufacturing facility may work with the community on environmental monitoring or support recycling programmes for used filters. Ensuring ethical treatment of employees, responsible supply chains, and positive community relations can strengthen brand reputation and facilitate continued business operation. Sustainable value creation encompasses both environmental and societal impacts.

Economic Resilience

The recent pandemic highlighted the need for resilience in every industry, including filtration. The Economic Resilience theme emphasises building strong supply chains and agile operations to withstand market shocks and disruptions. Filtration companies can reduce risk by sourcing materials locally or diversifying suppliers, ensuring production isn’t stalled by delays or geopolitical issues. Lean manufacturing and energy efficiency cut costs and support sustainability. Sustainable practices and resilient strategies often go hand in hand; using greener supply chains lowers both carbon footprint and business risk. According to a Bertelsmann study, Economic Resilience is essential for sustainable value creation, showing that environmentally conscious actions also serve as effective risk management.

Risk Management & Transparency

The Risk Management & Transparency theme addresses the need for companies to actively manage environmental and social risks and communicate their performance clearly. For filtration companies, this involves establishing systematic risk management procedures that identify potential sustainability concerns, such as future changes in emissions regulations or risks related to raw materials. Transparency is also necessary: monitoring and reporting nonfinancial indicators (such as ESG – Environmental, Social, Governance metrics) alongside financial outcomes. A filtration company may track its products’ carbon footprint, the proportion of recycled materials used, water consumption, and community impacts, providing this information in sustainability reports or on product labels. Many organisations publish annual Sustainability Reports, which support the credibility of their sustainability claims with data. Customers, investors, and regulators increasingly expect access to this information for verification purposes. Through transparent practices, filtration companies can align with developing policies, including new labelling and reporting standards, and demonstrate compliance. Practically, a company might issue a yearly sustainability report documenting progress in areas like waste reduction and CO₂ emissions per output unit. Transparency can also facilitate stakeholder engagement by encouraging feedback from employees, partners, and customers on possible improvements. In summary, risk management and transparency have become essential practices within the filtration industry.

Sustainable Finance

Sustainable finance, one of my areas of expertise, is concerned with ensuring that financial strategy supports sustainability goals. For filtration companies, this may involve utilising green finance instruments, such as obtaining green loans or issuing sustainability-linked bonds to fund eco-friendly equipment, factory upgrades, or research and development for advanced filters. These financing tools can include terms linked to environmental targets, such as adjusted interest rates based on emissions reductions. Another component is the integration of sustainability criteria into investment decisions, where companies might invest more initially in anticipation of long-term benefits like energy savings, regulatory compliance, or enhanced brand value. Sustainability initiatives are considered strategic investments with the potential for measurable returns. For example, investing in filter cleaning technology could allow for reprocessing and resale, potentially providing additional revenue. The alignment of finance with sustainability has also become a focus for policymakers, as illustrated by regulations like the EU’s Sustainable Finance Taxonomy. Filtration companies adopting these approaches may find it less challenging to secure investment and expand sustainable innovations. Coordination between financial planning and sustainability objectives is thus essential, as the use of sustainable finance tools can enable companies to pursue growth while advancing environmental and social aims.

Two Big Questions

Within the filtration industry, the six themes of the “Transformation Compass” offer a framework for reassessing value creation in the 21st century. These themes suggest that moving towards more sustainable filters and filtration systems involves integrating environmental, social, and governance considerations into the core business model, rather than relying on isolated improvements. Approaching transformation holistically may result in a filtration business that is resilient, innovative, and delivers value to stakeholders and the environment, alongside financial returns, a concept referred to as “true 21st-century value creation.” The filtration sector, while focused, is connected to important areas such as clean air, clean water, and healthy environments. By adopting this framework, filtration firms have the opportunity to demonstrate approaches that could inform industrial sustainability efforts more broadly.

Before concluding, two questions arise from these topics for consideration within the filtration community: Is achieving economies of scale necessary for advancing sustainability in filtration, or can individual companies and initiatives affect meaningful change? While scaling up can reduce costs for green materials and recycling and improve competitiveness, many filtration innovations originate as small-scale projects that later expand. Is a zero-waste filtration industry feasible, or is it an unattainable goal? Completely eliminating waste would entail significant redesigning of products, substantial reclamation efforts, and potentially reexamining definitions of “waste,” but some believe it is achievable.

For now, I will keep them rhetorical. After all, sustainability in filtration is a journey, one we’re all learning from as we go.

iStockphoto/Nauval Wildani