Business for good: merging two companies and transforming the new group towards purposeful impact
The consequences of global warming are increasing and affecting the whole world: “the average temperature of the planet has risen by 1.1°C since the beginning of the industrial era, a level of warming that has not been observed for at least 2,000 years“, underlines the IPCC (2022); this phenomenon is reflected in a rise in sea level, extreme weather events, the extinction of animals, a decrease in water and food resources, the melting of ice, and so forth. An ecological, social and economic threat that is becoming more apparent with each passing day.
All actors are called upon to act, the authorities, citizens, but also companies. Changing the core business of organisations to actively participate in the environmental transition of society on the one hand, and to ensure the resilience of companies on the other, is crucial. This is a strategic issue for many companies.
Realising that action is imminently unavoidable, two founders of different companies, want to join forces to maximise their societal impact. Their ambition is:
- To contribute to the resolution of one or more societal problems where the magnitude of their societal impact will be correlated to the economic success of the project.
- To address issues relevant to a Group active in the hotel, restaurantand events sector, particularly in terms of innovation, markets, customers, operational advantage or strategic positioning.
- Structure these ambitions around a vision that will create unity, buy-in and pride for stakeholders, including shareholders, over time.
The two companies, one in the hotel and catering industry and the other in events, differ in their mission, social commitment and level of awareness of their employees. Merging the two companies would allow alignment towards a broader impact mission with specific sustainability goals and become an exemplary model in the sector.
Telos’ mission is to answer the following question: How to determine a sustainable and impactful vision and bring all employees on board?
Telos Impact supports them in achieving their ambition through the development of an impact strategy and a concrete action plan.
The support is therefore provided in two stages:
(1) Strategy setting: analysis of the existing situation, deep dive of relevant organisations, identification of a vision and mission statement, and a clear action plan to guide the founders into the positive change to which their company wants to contribute.
(2) Once this strategic stage is complete, Telos assists them in implementing the impact action plan to frame and guarantee the success of the company in anchoring its mission at the heart of its business.
To give them a full support, Telos Impact has also guided them in the structuring of their entrepreneurial project and in the creation of their governance body for their initiative to be embodied as well as possible.
Today, the two companies have merged and formulated their vision. The new Group has put sustainability at the centre of its development strategy and is deploying an ambitious medium to long-term action plan. A person from the top management has been appointed for the development of the plan and for all impact issues in the organisation.
The first short-term results are visible: in one year, lots of “quick wins” have been implemented; the replacement of certain suppliers with more sustainable ones, the installation of photovoltaic panels or the implementation of a process for optimising water use which will allow a 24% reduction in water consumption.
The organisation is also engaged in a BCorp certification process. Telos Impact continues to monitor the implementation of their strategy and acts as an advisor to help them achieve the positive change that shareholders and staff want to participate in.