Sep 13, 2024
This series is part of Esgrid's series 'Pragmatic sustainability chat with CEOs' where we interview large organisation CEOs on their sustainability practices. This interview is with Otto Pukk, the CEO of Incap, a large electronics manufacturer.
How do you define sustainability at Incap?
As a globally operating electronics manufacturing services company and a growing organisation, sustainable operations are a must in achieving our goals at Incap. Acting in a responsible and trustful way is an integral part of our mission, strategy and operations. We are committed to actively promoting sustainable development to ensure that we will continue to be the trusted partner in our industry and to meet the increasing expectations of all our stakeholders also in the future.
Incap has joined the United Nations Global Compact initiative to show commitment to implement its Ten Principles and take action in support of the Sustainable Development Goals. We are excited to be part of it and grateful to our great partners on this journey, who have helped us establish our Corporate Sustainability programme (such as Aalto University and Bravura) and our partners from assurance, guiding us in this changing environment (PwC).
Can you give an example of how improving sustainability has led to better business results for your company?
Improving sustainability at Incap has led to better business results by enhancing operational efficiency and strengthening customer relationships. For instance, social responsibility is at the heart of Incap's corporate culture and strategy. Our employees are our most important asset and by investing in them we ensure our competitiveness now and in the future. As a result, the high quality and efficiency of our operations is based on seamless teamwork throughout the production and supply chain. The way we serve our customers sets us apart from our competitors. We are proud to be recognized for this over the years with several awards.
On the other hand, Incap is a contract manufacturer, so our customers choose the raw materials, materials and components used in our manufacturing processes. As a result, the environmental performance of our operations is strongly linked to our customers' environmental objectives. However, we are happy to say that Incap manufactures many of its customers' products that promote more sustainable technology solutions and the green transition.
From the perspective of economic responsibility, for example, we comply with regulations and requirements in our field of industry, which is a standard for doing our business. As a result, our customers value a stable, efficient and financially sound business partner, whom they can trust to manage their manufacturing while they manage their business. Meanwhile, a good reputation ensures the continuity of our operations and we can clearly say that this type of sustainable business practices are driving the growth and competitive edge of our business.
Are there specific sustainability KPIs that your management monitors regularly?
Yes, Incap’s management regularly monitors several key sustainability KPIs to ensure continuous improvement and alignment with their sustainability goals and they are visible here: https://incapcorp.com/sustainability/
In fact, we are currently in the middle of updating our Corporate Sustainability Programme and its KPIs as a result of the double materiality assessment carried out this as well as the new regulations that motivate us to expand our sustainability goals.
What is your role as CEO in managing sustainability?
I see my role as CEO in creating necessary working conditions and work environment for my team. At Incap I know that my colleagues are rockstars and more competent in their field than I could be. My role is to support them with the necessary resources and opportunities to solve problems. Not to manage them top-down through authority, but to create the conditions for them to do their work. So, when it comes to sustainability, as a CEO, I see my role in supporting our team and providing them necessary environment and conditions so that Incap could be a forerunner in the industry and invest in sustainable development at all our factories.
What would you recommend to companies that are still sceptical about the importance of sustainability in business?
I suggest each company view sustainability and it's reporting not just as a regulatory requirement, but as a strategic opportunity to enhance sustainable business practices. This is how we approach it at Incap as well. It’s about more than just compliance; it’s about measuring and managing our impact to foster long-term growth. Our sustainability efforts at Incap are driven from the ground up, and I’m incredibly proud of our team’s commitment.
The business landscape is diverse, and we all share a responsibility. It’s not just about making money from the business you do, but about how you make it. With our team at Incap, we have agreed that sustainability encompasses our environmental footprint, how we treat people, and the ethics we uphold. I believe this holistic approach is quite universal and crucial to any organization, especially in the era of startups and innovative companies that challenge traditional norms.
So, I believe we can all admit today that sustainable business isn’t just a sceptical trend; it’s a necessity. Let’s continue to prioritize sustainability and well-being in all aspects of business.