Climeworks' Strategic Management: Building a Sustainable Organization

This report critically evaluates Climeworks' founders' roles as sustainable strategic managers, focusing on their vision for environmental sustainability. It examines the strategic business management tools and concepts employed to address sustainability challenges. The report also discusses the economic and ethical dilemmas faced by strategic leaders in balancing short-term and long-term goals, particularly in the context of securing financial support for innovative but risky ventures. Climeworks' Direct Air Capture (DAC) technology and its impact on reducing carbon dioxide emissions are highlighted, emphasizing the company's commitment to environmental responsibility and its potential for long-term sustainability. The analysis underscores the importance of integrating environmental considerations into business strategies to ensure both profitability and societal well-being.

Building a sustainable
organization

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Critical evaluation of roles and responsibilities of Climeworks' founder as sustainable
strategic manager:.......................................................................................................................3
Concepts and tools of strategic business management that helps in handling sustainability:....5
TASK 2............................................................................................................................................6
Economic and ethical dilemma that strategic leaders face in the process of balancing long and
short term goals: ........................................................................................................................6
CONCLUSION ..............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Sustainability is an approach that gives guarantee of long term survival. Sustainable
organizations are involved in activities which increase their longevity as well as fruitful for the
environment. The project involves the critical evaluation of Climeworks' founder roles and
responsibilities as strategic manager who had followed sustainable approach in their business. It
also involves tools and techniques that will help rectify problems faced while attaining
sustainable goal. The report also gives the account of the economic as well as ethical problems
faced by the strategic managers in aiming short and long term goals. Climework is an
environmental service company based in Zurich, Switzerland. It was founded in 2009. The
founders of the company are Christoph Gebald and Jan Wurzbacher who had a vision to make a
sustainable organization. The company has developed an instrument which decrease the content
of carbon dioxide from the atmosphere and making environment a better place to live in.
MAIN BODY
TASK 1
Critical evaluation of roles and responsibilities of Climeworks' founder as sustainable strategic
manager:
Christoph Gebald and Jan Wurzbacher are the innovative entrepreneur who had a vision of
saving environment and provide a better place to live in for a long period. Making the
environment more sustainable and clear so that upcoming generations lead a good life. A
sustainable strategic manger will be one who had clear vision of supporting the environment and
life. There are many businesses running in the world but their efficiency is very much dependent
on the factors that support the environment. Businesses ran because there is demand in the
market but there are only few businesses which cares for the environment as well as living (Aly
and et.al, 2021). Entrepreneur are those that have quality of doing something new or which are
responsible of bringing change in the society. The companies running in the world do not care
for the environment and the only objective is to earn profit as well as increasing shareholder's
wealth. They do not take care of the environment and their personal materialistic needs change
their mindset towards the living (Bernardini, Lucesoli and Quagliarini, 2020). At present, only

those companies will survive who have the mindset of giving something to environment. The
future is better and safe with environment friendly companies. The environment has been badly
affected by the industrial wastes, asbestos, plastic wastes which proves to be hazardous for
upcoming generations and lead to severe health problems. So, there is a need of businesses
which have a perspective of saving and protecting the environment (Cheng and et.al, 2022). The
entrepreneurs like of Climeworks have a big responsibility on their shoulders as they had shown
the world a new way of business. Think of a place where there is no survival, no humans and no
existence of any creature. Climeworks founders has made an instrument which clears the air and
detoxify it from carbon dioxide. Carbon dioxide is like slow poison which is available in the
environment and disastrously causing heath issues to creatures (Gercek and Arsan, 2019). Every
business has a responsibility towards the nation and they should better try to sustain it for long.
The responsibilities will be increased on the shoulders of entrepreneurs like Gebald and
Wurzbacher to encourage their idea around the world and also share their techniques as it will be
helpful in saving the environment which further lead to clear and sustainable life. They also
present an example that businesses can be done which is fruitful for the environment as present
most businesses are only harming it. Businesses need to change their culture of taking and adopt
a culture of giving back to environment (Guler and et.al, 2021). New entrepreneur should try to
find businesses like Climeworks which have the capability to make out of something that can
create harm to society. If all hazardous things are reduced from the society then there can be no
better place for living as well as for doing business. Business sustainability is possible if better
society prevails and profitability is possible if people living in the society are healthy as well as
long-lived. So, new strategic managers should try to bring new developments in the business
which is heathy for the business as well as for the environment. It is true that there are less
businesses available as well as less support is provided by the society to the people who are
innovative entrepreneur. So, it creates many obstacles for those who want to bring
transformations in the society. It is a need of today's society to support new innovations and
entrepreneurs should try their best to bring transformation at any cost without the fear that they
do not get support from others. One who has a will then there is always a way for it. Founder of
Climeworks clearly show this with their tremendous effort and innovative thinking.

Concepts and tools of strategic business management that helps in handling sustainability:
 Objective and key results – This tool of strategic business management gives an idea of
company's objective with their respective results. The aim is prepared by the company so
that better results can be obtained in the future. It helps in beating the competition in the
market. In case of Climeworks, the objective is to install a plant that will decrease the
content of carbon dioxide in the atmosphere and key result involves the reduction of 900
tons of carbon dioxide from the atmosphere which is equivalent to 200 cars emission. If
the objective of business is in linear with the environment then it is going to be more
sustainable as its result are helping in beating the competition.
 Market share analysis – This tool helps in assessing the market availability of a particular
product or service. The market helps in understanding the demand of product. The
consumer's demand is the primary basis of raising the market share of the company.
When a product is entirely new to the market as well as highly effective and productive
then there is higher possibility of capturing market share. It is like monopoly in the
market (He and et.al, 2019). Climeworks is presently enjoying monopoly as there are no
big competitors available in the market. Some of its competitors include Twelve, Verdox
and Heirloom. But they are not able to compete with Climeworks as it is still a private
firm. A company which is strong in the market or in high demand has high sustainability
till a strong opposition enters against it.
 Life cycle analysis - This cycle gives an idea of a company's whole process from
manufacturing till its final disposal. It tells about the environmental impact faced due to
formation of a product or service. The sustainability of a product can be better
determined with life cycle analysis. Climeworks has a continuous life cycle as it directly
captures air from atmosphere and detoxify it from carbon dioxide and release free air
which later supplied to Gebrüder Meier which later utilize it to grow vegetables. This
cycle is unstoppable as air can not be removed from the atmosphere as it is viable for
human life. The product which has less harmful for environment is more sustainable than
a product which is disastrous for environment (Jia, Gong and Brown, 2019).
 Balanced scorecard – It measures the overall performance of the company. The company
is well evaluated with the help of balanced scorecard. The balanced scorecard involves
measures like customer satisfaction, internal processes, organization's improvement as

well as innovation which helps in increasing its demand in the market. It tells about
company's efficiency in innovation and how well it has updated its technology with
respect to its competitors (Tien and et.al, 2019). Climeworks is very advanced in its
technology and currently the plant is able to emit 90% carbon dioxide and the company
is aiming to take it to 96% efficiency. The company is able to reach the target as soon as
possible because it has advanced technology and are highly efficient. The more proper
balanced scorecard tells about company's efficiency as well as good performance and it
leads to company sustainability for long.
 Value chain analysis – It is the analysis of company's production by identifying its each
step progressiveness in the given period of time. It helps in doing relevant improvement
in their activities to increase their production and efficiency. These improvements help in
taking better decisions at right time and also lead to innovation in their accessories.
Competition in the market leads to improvement (Tokede, Roetzel and Ruge, 2021). The
company which is able to do developments with time is sustainable. The analysis makes
the company competitive and progressing. Climeworks is presently using advanced
technology for capturing carbon dioxide from air that is Direct Air Capture (DAC)
technology which is highly competitive and sustainable in the market.
TASK 2
Economic and ethical dilemma that strategic leaders face in the process of balancing long and
short term goals:
There are many issues faced by business leaders in their works. They usually do not get
any support from the market people as competition prevails everywhere. This problem is huge
for new entrepreneur as well as businesses. As new businesses are short with finance and they
require support from the required bodies to start business activities. Short term goals for a
company is to maintain enough cash for doing operational activities with ease and reducing
business overheads as much as possible. Long term goals of a company involve diversification
and expansion which help it to increase market share as well as increase brand awareness. The

strategic leaders need to go to private equity firms, venture capitalist, angel investor and many
others who fulfil the need of finance. As new to the market company has to struggle for the
finance but it is the basic need to fulfil the requirement of business. The business model prepared
by the company is generally disapproved by financial institutions if it seems to be unique or
show a sign of little or less growth. Financial institution generally does not take risk at their end
and they invest to grow their money only (Xue and et.al, 2022). So, entrepreneur and strategic
leader face the problem of economic instability at their initiation as it is difficult to arrange the
finance for the company. They have the idea which is unique to the world and new ideas
involves high risk. As the unique idea has high possibility of rejection by the consumers. So, it is
risk bearing and not easy for the company to gain investment with ease. Climeworks' founder
Gebald and Wurzbacher came with an unique idea in Swiss market and the company has faced
the problem of investment at their initial stage. This problem came after them as their idea
involves something which is beyond the expectation of the market and it is totally new to
consumers. Their consumers are also unique. The company clears the air form carbon dioxide
with the help of direct air capture (DAC) technology and supplied it to other firm which utilize it
to grow vegetables. This idea is very new to the market and their consumers are also unique.
Higher risks lead to higher profitability. Short term involves immediate finance and long term
involves surety of finance for big purposes. Long term goals are very difficult to made for
entrepreneur as it requires huge finance which can be generated by the company after their
stability in the market. So the first and initial need of a start up is to make its company stable and
their idea is not raising any legal issues. The company can only sustain if it fulfils the needs of
the environment as well as consumers.
The ethical dilemma faced by the strategic leader involves that their actions does not
create any harm to society, other businesses and consumers. The entrepreneurs need to think
about the safety as well as sustainability of the environment. The short term perspective involve
the product standards and quality which is presented to consumers whereas long term goal
involve that product must be of saving nature for environment, easily recycle and renewable as
well as sustainable. The product which meet the standards and need of consumers are sustainable
for long term while on the other side if the product degrades the environment or harms the
society then its viability is low in the market. The product must be beneficial in all terms and it
gives security to consumers. Climeworks is protecting the environment from harmful emission

of carbon dioxide and protecting people from health hazards as well as utilizing it in producing
fresh vegetables. So, this technology is very advanced and highly sustainable as it is favourable
to environment as well as for the society.
CONCLUSION
From the above report, Climeworks' founder has the vision of saving the environment and gave
the concept of sustainability to world. Sustainability can be attained by progressing with
environment and not by deteriorating it. Develop as much product as possible using advanced
technology which will help environment in being pollution free and life saving. New businesses
need support to progress and it is the duty of existing ones to help in developing. Financial
institution should help new businesses which can transform the living of society apart from their
thinking of profit. There are many concepts available in strategic business management for
easily running the business and maintain its sustainability. Economic and ethical dilemmas are
needed for strategic business leaders for bringing something new for the society and make it a
better place to live. The more an innovative strategic leader think the more chances are possible
of improving the environment and making it sustainable.

REFERENCES
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