WELCOME TO the first-ever Pricing for the Planet Week - DAY 3
From Nov 4th to Nov 8th
Sustainability, where to start and what to do?
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DAY 3 - AGENDA
Welcome to Day 3 of the PricingForThePlanet Week!
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Here is your Day 3 One pager. You can explore the session summaries and key takeaways or dive into the full video by clicking the play button. We hope you find this content inspiring and that it encourages you to take even bigger steps toward sustainability.
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If you encounter any issues, feel free to reach out to us at info@pricingfortheplanet.com.
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Please use your free access to our Pricing For The Planet online community to ask questions and to network (see bottom section of this page)
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Enjoy!
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​Part 1
Innovative Business Models: Pioneering Sustainable Practices
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Speakers:​
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Key Takeaways:​
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Redefining Business Models to Increase Utilization
Michael Mansard (Zuora) emphasizes that transitioning to sustainable business models involves increasing the utilization rate of products. This approach reduces environmental impact by ensuring fewer products are produced but used more efficiently. Examples include subscription models such as Haier’s WashPass, where washing machines are provided as a service, optimizing water use through AI and extending product life.
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Adopting Circular and Service-Based Approaches
Companies are shifting from linear, one-time sales to service-based models. These approaches include maintaining and upgrading products, resulting in longer product lifespans. This shift requires manufacturers to take responsibility for their products from design to disposal. Mansard notes that extending product life cycles for multiple users, like bike-sharing models, exemplifies circular economy principles and supports sustainability.
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Financial and Operational Impacts on Companies
Alex Lheritier (Koaloo.fi) explains that subscription and service models can improve financial health by creating recurring revenue streams and reducing debt on balance sheets. This structure supports sustainability initiatives by aligning financial and environmental goals. He stresses the need for businesses to understand the financial benefits, such as reduced operating costs and optimized tax outcomes, linked to these models.
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Comprehensive Change Management is Essential
Mansard highlights that moving to service-based, recurring revenue models is not just a payment change but a 360-degree transformation that includes redesigning products, rethinking customer relationships, and establishing new KPIs. This shift necessitates investment in customer success management and operational restructuring to support the new model effectively.
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The Role of Customer-Centric Strategies
Inès de Mas Latrie (Ducker Carlisle) underscores the importance of understanding customer needs to design successful product-as-a-service models. She shares that in B2B, aligning sales channels and incentivizing service levels are crucial for managing product life cycles and enhancing user experience. Companies must partner effectively with their networks to offer consistent service and value.
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Overcoming Organizational Silos
De Mas Latrie and Lheritier discuss the challenges of breaking down silos within organizations. For example, aligning sales and aftermarket services can ensure cohesive customer experiences. Companies need joint KPIs across departments to support a unified approach to sustainability. Lheritier stresses that procurement should align with HR and finance teams to integrate social and environmental KPIs into supplier relationships.
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Engaging Suppliers for Better ESG Data
Lheritier highlights that most of a company’s ESG impact comes from its supply chain. Engaging suppliers by offering financial incentives can encourage them to provide reliable ESG data and improve their practices. This approach creates a mutually beneficial system where sustainability and profitability coexist.
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Iterative Implementation and Long-term Focus
Mansard advises that transitioning to sustainable models requires time and patience. Companies must focus on small, iterative changes rather than expecting immediate perfection. The process involves learning from early implementation phases and gradually building a strong foundation for value-based pricing and outcome-driven models.
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Practical Advice for Companies Starting Sustainability Initiatives
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Start Small and Focused - Companies should identify and target key customer segments that will benefit most from new sustainable offerings. Starting with a focused approach allows for better execution and learning.
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Develop Clear Communication and Strategy - Clearly outline your sustainability strategy and communicate it effectively to investors and stakeholders. Establish milestones and benchmarks for measuring progress.
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Break Down Internal Barriers - Encourage collaboration across departments, especially between procurement, HR, and finance, to align on sustainability objectives and KPIs. This collaborative approach helps integrate sustainability into the company culture.
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Engage Suppliers with Incentives - Work with suppliers to collect ESG data by offering benefits like faster payments or lower financing costs. This supports data collection and enhances supplier relationships.
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Iterate and Be Patient Understand that achieving sustainable business transformation takes time. Companies should expect to adjust and refine their strategies as they gather more data and experience.
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Watch the full video:​​​
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WEBINAR
The Untapped Goldmine of Remanufacturing
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Speakers:​
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Key Takeaways:
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Remanufacturing: A Proven but Undervalued Model
Ron Giuntini explains that remanufacturing has existed for over a century and involves disassembling, refurbishing, and reassembling assets to a “like-new” condition. Despite its benefits, the remanufacturing process is often overlooked in financial reporting and industry discussions, even though it can save up to 70-80% of material content, significantly reducing environmental impact.
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Dual Benefits of Reman for Profit and Planet
The panel, including Kamlesh Bhatia (Ducker Carlisle) and Chandler Dalenberg (CNH Industrial Reman), agrees that remanufacturing is beneficial for both profitability and sustainability. Remanufactured products extend the lifecycle of assets, save on raw material procurement, and use less energy, creating a win-win situation for companies and the environment. The longevity of products is a major selling point that supports sustainable practices.
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Challenges with Promotion and Perception
While remanufacturing is beneficial, companies often underutilize or fail to promote it as part of their sustainability initiatives. This is partly because sales teams prefer selling new products with higher price points, which impacts commissions. Giuntini notes that increasing commission rates for reman sales can incentivize teams and boost remanufacturing sales while emphasizing its green benefits.
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Customer Education and Warranty Assurance
Chandler Dalenberg emphasizes the importance of educating customers about the remanufacturing process. Customers often perceive remanufactured products as second-rate, but explaining the rigorous testing and providing equal or better warranties can shift perceptions. CNH Industrial Reman offers warranties that match or exceed those of new products, reinforcing trust and demonstrating product quality.
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Design for Remanufacturing
Successful remanufacturing starts at the design stage. Kamlesh Bhatia highlights the importance of incorporating design principles that facilitate future remanufacturing. This includes creating products that can be easily disassembled, upgraded, and retrofitted. Companies need to plan for this early to fully leverage the benefits of reman in their sustainability and business models.
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Reverse Logistics and Core Management
One of the biggest challenges in remanufacturing is managing the return of used products, known as cores. Dalenberg points out that efficient reverse logistics and core velocity are essential for reman success. Companies must create robust systems to collect cores quickly and seamlessly, ensuring a continuous supply for remanufacturing operations.
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Collaborative Efforts and Partnerships
Effective remanufacturing requires collaboration across departments and with external partners. Establishing partnerships with logistics providers and suppliers can help streamline core returns and reverse logistics. Bhatia notes that finding a partner skilled in reverse logistics can mitigate many operational challenges, making the process more manageable and efficient.
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Remanufacturing as a Competitive Advantage
Remanufacturing offers a strategic edge in times of supply chain disruptions. By utilizing existing assets and reducing dependency on raw materials, companies can bring products to market faster and with lower environmental impact. This can be a significant differentiator, particularly in industries facing material shortages and sustainability pressures.
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Aha Moments and Final Reflections
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Incentivize Sales Teams - Companies should adjust commission structures to promote remanufactured products, ensuring that sales teams are motivated to offer these sustainable options.
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Develop Robust Reverse Logistics Systems - Implement or partner with experienced logistics providers to ensure cores are returned efficiently. This is crucial for maintaining the supply chain of remanufactured products.
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Integrate Remanufacturing into Product Design - Design products with remanufacturing in mind to facilitate disassembly, upgrading, and retrofitting. This approach enhances the sustainability of the product lifecycle.
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Educate Customers on Value and Warranty Highlight the rigorous processes involved in remanufacturing and provide warranties that match new products. This builds customer confidence and shifts perceptions.
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Engage CFOs and Finance Teams Educate finance leaders on the profitability of remanufacturing. Present clear, data-driven cases to demonstrate how reman can contribute positively to financial outcomes.
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Watch the full video:​​​
WEBINAR
Sustainable Business Models, Data, Baseline where to start? with Claude Henry Pignon, Pricing & Sustainability Director, Ducker Carlisle (LinkedIn)
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Key Takeaways:
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Data as the Foundation of Sustainability Initiatives
Claude Henry Pignon (Ducker Carlisle) highlights that effective sustainability transformation begins with establishing a clear baseline. This baseline, akin to stepping on a scale before starting a diet, allows companies to understand their current environmental impact in terms of CO2 emissions, waste, water usage, etc. Without this foundational data, it’s difficult for organizations to set meaningful goals or track progress effectively.
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Understanding Impact Before Taking Action
Pignon emphasizes that while many companies have strong intentions and initiate sustainability projects, they often skip critical steps, such as accurately measuring their starting point. He uses the metaphor of a diet to illustrate this: before deciding on changes, one must know their current “intake” or environmental impact. This helps pinpoint where changes are most needed and where inefficiencies lie.
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Contextualizing Environmental Impact
To make sustainability efforts meaningful, companies must contextualize their baseline data. For example, reducing energy use by lowering lighting or adjusting temperatures is not always effective unless tied to production levels and external factors like weather. Understanding the relationship between energy consumption and production rates is essential to measure the real impact of any sustainability initiative.
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Challenges with Initial Implementation
Companies often approach sustainability reporting as a compliance requirement rather than an opportunity for insight. While regulations such as the CSRD push organizations to gather and report data, the challenge lies in moving beyond high-level estimates to granular, actionable data. This detailed information helps companies make smarter decisions and track improvements over time.
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Sustainability as a Cost-Reduction Strategy
Pignon notes that sustainability can lead to cost savings when approached correctly. He draws parallels to lean manufacturing, suggesting that environmentally efficient practices often mirror cost-efficient practices. For example, reducing energy consumption directly impacts the bottom line, benefiting both the environment and operational expenses.
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Quick Wins vs. Long-term Investments
While some sustainability measures yield immediate cost savings (e.g., optimizing machine downtime or adjusting production processes), others, like replacing large furnaces or overhauling major equipment, require significant investment. Companies need to balance quick wins with longer-term, high-investment projects, understanding that while the payoff may not be immediate, it can be substantial over time.
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Building a System for Environmental Performance Tracking
Companies should implement systems that track environmental impact data from the shop floor to executive management. This data flow supports both regulatory reporting (e.g., CSRD) and strategic decision-making. Having clear, structured environmental KPIs helps align sustainability objectives with business performance, allowing leaders to make informed decisions about product lines and investments.
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Integrating Sustainability into Financial Decision-Making
Pignon points out that sustainability should not be viewed as an added cost but as an integrated part of financial planning and operational strategy. By drawing on practices from financial controlling, companies can create systems that measure the “environmental cost of production” and incorporate it into overall performance metrics.
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Practical Advice for Companies Starting Sustainability Initiatives / So What?!
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Start with Baseline Data: Measure current environmental impact (CO2, energy, water, waste) to set targets and track progress effectively.
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Invest in Contextual Analysis: Ensure data is analyzed in relation to production rates and external factors for deeper insights.
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Develop Tracking Systems: Implement systems to monitor sustainability metrics, supporting better management and compliance.
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Leverage Technology: Use AI and advanced tech for accurate data collection and analysis, especially for complex emissions like Scope 3.
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Ensure Auditable Claims: Keep reliable, traceable data for sustainability claims to enhance compliance and trust.
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Watch the full video:​​​
Don't let the digital format hold you back from networking!
By joining this event, you have a free access to our Pricing For The Planet online community, where you can:
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Ask live questions and respond to open discussions on the platform
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Connect with others and start meaningful conversations
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Access exclusive content throughout the week
So, no more excuses—head to our online platform, start networking, and ask your questions!
Continue the journey with us!
We’re excited to launch our community-driven learning platform, The PricingForThePlanet Leanring Platform, designed to fill the critical skills gap at the intersection of business and sustainability.
Extensive research and conversations with leading headhunters have shown that the ability to monetize sustainability will be one of the most highly valued skills in the near future.
Join us as we empower professionals to turn sustainable practices into profitable strategies, driving both environmental impact and business growth.
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