Doing business sustainably, focusing on the future: ESG as a driver of innovation at G+D

ESG as part of G+D’s corporate strategy

Sustainable transformation at G+D is aimed at driving change in the areas of environmental and climate protection, social responsibility, and corporate governance, while retaining a focus on commercial success. In 2022, the senior management team set up an ESG Committee to systematically plan all the relevant activities. With support from the Corporate Sustainability department, cross-sector targets are being defined and step-by-step implementation actioned. Group Chief Digital Officer Gabriel von Mitschke-Collande is responsible for these activities within the Management Board, which underlines the exceptional importance of this topic for G+D. ESG is part of the company’s value proposition and is embedded in the strategic objectives of the global corporate strategy.

G+D was quick to establish a reporting framework for sustainability matters, with all actions and progress in this field being documented transparently and in detail. G+D is a member of the UN Global Compact and is guided by the standards of the Global Reporting Initiative (GRI). 

Key ESG milestones achieved in 2024

In 2024, G+D achieved a number of important milestones as it continued its sustainability transformation process, including seeing the company’s ambitious climate targets successfully validated by the Science Based Targets Initiative (SBTi). This validation ensures that G+D’s climate targets are grounded in science and aligned with global efforts to limit global warming to 1.5 °C.

G+D’s aim is to reduce its global emissions to net zero by 2040. Accordingly, G+D sustainability experts have drawn up a detailed climate transition plan. This plan identifies the main action areas and outlines specific steps for achieving the defined targets.

Implementation has already begun and the measures are being continually updated. An important target has already been achieved: the company has been obtaining its electricity worldwide from renewable energy sources since 2023.

G+D also made important progress in the ESG areas of Social and Governance in 2024. The proportion of women in management positions increased, a new program specifically promotes female and international talent, and training opportunities have been expanded overall. In addition, G+D put rigorous standards in place for data protection and digital responsibility. Last but not least, the company stepped up its commitment to sustainable supply chains in order to ensure human rights are respected along the entire value chain.

This professional setup means that G+D has created optimal conditions for further progress. As an integral part of the business strategy, sustainability is not merely a cost factor for the company, it is an important lever for commercial success. This is especially apparent when it comes to an area that is crucial for a technology company like G+D: innovation.

Sustainability and innovation go hand in hand

Environmental and societal developments, combined with higher customer expectations, are motivating companies to create new and better solutions for addressing ecological and social challenges. Sustainability is thus becoming a key driver of innovation in many industries. It provides important momentum for creativity, drives the development of efficient processes, and opens up market opportunities for new products and services.

At G+D, sustainability is an integral part of corporate strategy. Environmental impacts and social aspects are taken into account in all areas and business processes, from the procurement of materials to risk management. Sustainability is not seen as a cost factor – it offers clear added value, whether through meeting customer expectations or unlocking new areas of business.

Sustainable product innovation at G+D

G+D offers a wide range of sustainable products tailored specifically to the requirements of the circular economy. One sustainability initiative is banknote fiber extraction, an innovative process in which end-of-life banknotes are recycled and their fibers reused in environmentally friendly applications. The recovered fiber material can be made into items such as environmentally friendly paper bags or sustainable packaging for logistics companies.

Another example is a program for recycled bank cards, with expired cards being securely recycled and the material fed back into the production cycle. This reflects a sustainability-by-design approach, whereby the entire lifecycle of a product is considered at the design stage, from manufacturing cards out of recycled plastic and using renewable energy through the in-use phase to proper disposal. This program involves close collaboration with banks and financial institutions. Expired cards can be returned to the branches of participating banks. The recycled material is then used to manufacture new plastic products in other industries.

Accessible payment is another area where sustainability and innovation form a powerful synergy. Here, developments range from tactile markings, high contrast design, and Braille for card solutions through to optimizing digital payment methods in line with the latest standards, such as through simplified authentication and easy-to-use app interfaces. In 2024, G+D launched a series of co-creation workshops, where banks, fintechs, and accessibility supporters come together to jointly develop innovative solutions. 

Digitalization as a driver of sustainable innovation

Looking at sustainability from an innovation perspective, an additional megatrend plays an important role, namely digitalization. G+D deploys digital technologies to make internal processes more efficient, particularly in manufacturing. Optimized processes cut energy consumption, reduce the use of raw materials, and minimize waste.

G+D is also making innovations a reality with the concept of digital twins. A digital twin is a digital version of a physical product, such as a payment card or ID document that can be used in both the real world and the digital world. These digital alternatives offer customers greater flexibility and require fewer materials, thus conserving resources. The eSIM, for example, an embedded SIM card, drastically reduces material requirements.

Ongoing digitalization is also a factor in responsible corporate governance. Corporate digital responsibility (CDR) is part of the Governance element of ESG. G+D is committed to handling data responsibly and ensuring its integrity. Here again, necessary trust can only be created through reliable and sustainable conduct.

Sustainability calls for strong partnerships

The above-cited example of recyclable payment cards demonstrates that companies need to work together with partners to realize the full potential of innovation. G+D is therefore intensifying cooperation and dialog with stakeholders in order to drive its sustainability strategy at all levels. Suppliers were invited to a dedicated ESG Summit for the first time to jointly develop ways of optimizing the supply chain and to strengthen collaboration on all three aspects of ESG.

There is a special focus on Scope 3 emissions, which are generated by upstream and downstream partners in the supply chain. G+D is working to significantly reduce these emissions through transparent analysis and close partnerships.

In addition, G+D is a member of the UN Global Compact and econsense sustainability networks. It seeks to actively drive the transformation towards greater sustainability together with other international companies. Acting with suppliers, partners, and other stakeholders, G+D is thus creating the foundation for achieving ambitious climate targets and meeting future reporting requirements, such as those in the Corporate Sustainability Reporting Directive (CSRD).

Sustainability is about teamwork

Sustainability and innovation are inextricably linked and foundational for G+D’s long-term strategic direction. With clear targets such as reaching net zero by 2040 and establishing parity of sustainability and financial goals, the company is demonstrating the importance of integrating environmental awareness into strategic planning. Digital technologies play a key role here, as do partnerships and the willingness to continuously progress and improve. Ultimately, sustainability is about teamwork – with colleagues, partners, and customers.

The latest sustainability report provides a detailed insight into the wide range of initiatives and the progress we have made to date.