Interview with Regula Wallimann

swissVR Monitor: What is the Board of Directors’ role in relation to sustainability?

Regula Wallimann: The Board of Directors is responsible for strategy across the company, so sustainability needs to be embedded in that strategy across all relevant dimensions – environmental, social and governance. The Board works with management to define appropriate and achievable targets across these dimensions. It can also provide additional impetus and support with meeting goals and targets. I think it is important that sustainability is seen not as a risk to the company but primarily as an opportunity.

Committee members have more time for discussion and can address issues in greater depth, so it may be sensible to do the preparatory work on some issues within committees, such as the Audit Committee in relation to risk management or regulatory reporting or the HR Committee in relation to employment goals. Ultimately, though, the full Board is responsible for decision-making and for overseeing and implementing the company’s sustainability strategy.

Regular external and internal communications on sustainability – for example, on social media and the company’s website – can boost the company’s reputation. Sustainable corporate management and a robust sustainability strategy give companies a competitive advantage. And they are attractive to future employees, enhancing the company’s position in the labour market.

swissVR Monitor: What steps do you advise Boards to take to ensure their company is environmentally, socially and economically sustainable?

Regula Wallimann: Businesses and sectors differ in their level of exposure to environmental concerns, but I think it’s important that manufacturing companies review their future investment in environmentally sustainable production processes and technologies. Social and economic sustainability is crucial for all companies, though. Employees these days want to work for a company that cares about the welfare and development of its staff, so it is important to drive progress on these issues and to invest to produce tangible results. Intense pressure on the labour market means companies have to position themselves differentially from their competitors. And they now struggle to recruit skilled workers, whereas the reverse has traditionally been the case. For all these reasons, the Board needs to address these issues and communicate regularly on what it is doing and what progress it is making.

swissVR Monitor: What do you think constitutes appropriate management reporting on sustainability?

Regula Wallimann: Ideally, management will report regularly – once or twice a year – to the Board of Directors on the progress it is making towards achieving its targets and on the obstacles it faces. I myself would like to see a succinct but informative system of reporting, perhaps using a traffic light system, so that I as a Board member can see whether the company is on green, amber or red in relation to a particular issue. Where targets are proving very difficult to meet, I would like to understand the reasons for that and to be briefed on how management plans to improve the situation. Of course, targets are sometimes over-ambitious and need to be adjusted, but they should generally be ambitious and facilitate real progress. In terms of both internal and external communications, it is important that companies actually describe what is being done rather than simply announce goals that are not then linked to appropriate activities.

swissVR Monitor: The Straumann Group has made sustainability one of its strategic priorities. How has this been reflected at Board level? And how has it been handled, especially compared with your other Board mandates?

Regula Wallimann: In early 2021, the Straumann Group set up an Environmental, Social and Governance (ESG) Taskforce to give fresh momentum in this area. The taskforce comprised three Board members and selected members of the management team who worked closely for two years with the Sustainability Team and the Communications Team. It reviewed and revised the Group’s sustainability strategy, set new goals, and strengthened governance in this area. In 2023, these areas were then delegated to existing Board committees, which took on responsibility for ensuring progress. Setting up a time-limited taskforce created fresh impetus within the organisation and gave sustainability a much higher profile than it had previously had. This boosted understanding of both how and why the company sets targets and works towards achieving them. We really believe that our ambitious sustainability strategy gives us a competitive advantage.

swissVR Monitor: Thinking about the sustainability process in your other Board mandates, which factors do you think help ensure success?

Regula Wallimann: Success starts with having sustainability as a regular item on the agenda for Board meetings. If the Board sets realistic and ambitious goals and gives management a clear mandate to implement them, it is well on the way to succeeding. It’s important for the Board to see and understand whether the company is making the progress it expects. And comparison with competitors helps ensure the company stays on track and can make and sustain progress. In my view, the Board is also responsible for providing support to management in focusing on the areas that really matter: it’s all too easy to get lost in a welter of targets and regulatory obligations. I think it’s better to focus on just a few goals and to make genuine and substantial progress in those areas. Success will then spur the company on to even better performance.