Leadership

Sustainability transformation should be seen as a longterm strategic imperative that extends beyond the timelines of individual regulations or policy cycles.

As markets evolve and stakeholder expectations grow, companies that align with sustainability to drive their strategy are not only better positioned for future risks but are also actively shaping their competitive landscape.

What are the key strategic actions that help to embed sustainability in corporate strategy, and how can they be used to drive change?

Innovation fueled by environmental goals

A compelling business case for sustainability lies in its ability to spark innovation. Ambitious goals around climate impact and resource efficiency push companies to challenge existing assumptions, leading to smarter designs, improved performance, and operational advantages.

In the shipbuilding industry, Meyer Turku exemplifies how sustainability-driven innovation can create real business value. For decades, the Finnish shipyard, which builds luxury cruise ships, has focused on energy efficiency and emission reduction as core components of vessel design. “We see sustainability as a key enabler of future business,” says Deputy CEO Tapani Pulli.

Among its innovations are modular, lightweight cabins and systems designed for optimal hydrodynamics and smart energy use, significantly reducing fuel consumption and environmental impact while enhancing the onboard experience. Such advances not only lower emissions but can also improve total life cycle cost, a critical value proposition in a competitive market.

Ecosystem collaboration as a catalyst

Sustainability transformation is too complex for any single business to achieve in isolation. Increasingly, companies are engaging in ecosystem collaboration to unlock innovation, distribute risk, and accelerate progress. These ecosystems bring together a broad range of actors: suppliers, startups, academic institutions, technology providers, regulators, and even competitors.

The advantages are significant. Ecosystems broaden access to knowledge and technical expertise, accelerate the development of complex solutions like low-emission technologies and circular materials, and help spread innovation costs across multiple parties. They also enable companies to enter emerging markets and navigate uncertain regulatory environments more efficiently.

Meyer Turku has benefited from this approach by leveraging Finland’s robust maritime cluster, a network of engineering firms, component manufacturers, the state, and academia. “We can’t achieve this alone. The collaboration with the whole ecosystem is critical,” says Pulli. This model has enabled the shipyard to pioneer energy-efficient, future-ready cruise ships without shouldering the entire R&D burden. “Our ships are built with flexibility to adapt to alternative fuels, including biofuels, methanol, and ammonia. In the long run, nuclear power is also being explored. We are also committed to using near-to-zero (“green”) steel in the ICON 5 ship, which is scheduled for delivery in 2027.”

Unlocking new value with the circular economy

As pressure mounts to reduce emissions, companies are increasingly adopting circular economy models to extend product lifespans, minimize waste, and uncover new revenue streams. Shifting from linear systems to regenerative loops demands new thinking around design, materials, and business models. This will not happen overnight.

“We have already integrated circular principles into shipbuilding by designing cabins with recyclable, lightweight materials that reduce both material input and fuel consumption. “Circularity will be the next wave in transforming our business models,” notes Pulli, highlighting how environmental improvements can also yield a long-term forerunner position in the market.

Embedding sustainability into strategy

To realize the full potential of sustainability, companies must move beyond isolated initiatives and embed sustainability comprehensively within their core strategies. This involves integrating sustainability criteria into investment decisions, product development, procurement processes, and executive performance metrics.

Sustainability performance is also increasingly linked to access to capital, customer relationships, and supply chain resilience. One valuable tool in this integration process is the Double Materiality Assessment (DMA), which identifies sustainability issues that are material both to the business and its stakeholders. For Meyer Turku, the DMA process conducted in spring 2024 was transformative: “The whole leadership team was very engaged, and we understood how sustainability drives our strategy and is key to our future competitiveness,” reflects Pulli.

Across industries, companies that embed sustainability into their governance and risk management frameworks are better positioned to adapt to evolving market conditions, secure investment, and maintain their operational licenses in a net-zero economy.

Authentic leadership and culture

No sustainability transformation can succeed without leadership commitment and cultural alignment. Time and again, successful companies are those where sustainability is championed at the top and deeply rooted in the organisation’s values.

For Pulli, the connection is personal. “I value nature, especially the beautiful Turku archipelago,” he says. “In business, I believe we must do everything we can to minimize ecological impacts and consider the full life cycle of the cruise ship, not just the production.”

When sustainability becomes a shared conviction, not just a strategy, organizations are more resilient, adaptive, and purpose-driven. Authentic leadership sets the tone, creating the foundation for innovation and long-term success.

Sustainability is no longer a constraint. It is a catalyst for growth and transformation. As global challenges intensify, the companies that lead with conviction, collaborate with purpose, and innovate with sustainability in mind will be the ones that define the future of business.

This article is part of our AFRY Insights publication series, where experts from AFRY Management Consulting share their insights into emerging global trends across the energy and bioindustry sectors, as well as sustainability transformation.

We dedicate the article to the memory of Tapani Pulli, who passed away in the summer of 2025. His championing of corporate sustainability continues to inspire us both now and in the times ahead.