Our Strategic Path Toward Sustainability

Integrating ESG into Business Practices and Corporate Culture

With widespread awareness of environmental, social, and governance (ESG) issues, companies now fully understand that integrating ESG is not optional but a strategic necessity and they are actively incorporating it into their operations.

At 3Shape, General Counsel Henriette Stakemann is driving a transformative shift, together with a dedicated ESG manager and team. As they embed sustainability into the core strategy, Henriette’s legal organization within the company demonstrates why it is well-equipped to lead this critical task. Henriette describes this effort as "a journey to solidify ESG as a cornerstone of resilient business practices and a healthy work environment."

She explains: "A commitment to ESG has become a requirement from our external and internal stakeholders. But it’s a requirement we welcome because it's good for our planet and because an ESG agenda makes us a better and stronger company internally and externally. 3Shape's self-declared purpose is to enable superior dental care for patients. Since people's health drives us, ESG falls naturally into our culture, brand identity, and business goals. "

"It's no longer just a nice-to-have but a need-to-have."

Despite the clear parallels between ESG and 3Shape's purpose or the apparent relationship between ESG and healthcare businesses in general, Henriette underlines that a robust ESG strategy is essential for any business. Customers expect it, partners and employees demand it, and the public and media will constantly scrutinize a company’s actions. Any attempt at greenwashing can lead to serious financial repercussions and harm reputation.

"It's no longer just a nice-to-have but a need-to-have. Reporting on ESG-related performance is already a legal requirement for many companies, just like financial reporting.? We are working to comply with the EU's Corporate Sustainability Reporting Directive (CSRD), which defines how businesses across Europe approach sustainability, making transparent reporting not just good practice but soon a strict mandate. However, the legal demands are not our main motivation.? Our employees, shareholders, partners, and customers expect us to address ESG in a wider context, making positive ESG practices crucial to our business success." ??

"We wanted to highlight our ESG efforts and give sustainability maximum clout."

Because of ESG's significance, 3Shape has a dedicated ESG division within Henriette’s organization, headed by Cora Frederikke Birkkj?r, Senior Manager and ESG Lead. Henriette believes it is essential to do all you can to make ESG stand out and shine in the organization.

"We want to highlight our ESG efforts and give sustainability maximum clout in the company. ?Therefore, we divided my traditional Legal organization into three branches - Legal, IP, and Sustainability, or as we call it, "LIPS." The Sustainability team drives the bulk of the work and the ESG strategy. Our legal professionals are close by to support them with the legal aspects of sustainability, such as the reporting and compliance requirements. Our ESG manager and her team are active and very visible across the company to cover all areas where sustainability is relevant, and they work to embed our ESG strategies in everything we do. "

"The social pillars are firmly embedded in our ESG strategy at an internal and external level."

Henriette acknowledges that 3Shape still has much to do, and the ESG journey for any company is long. Looking ahead, she sees a developing trend where the "S" pillar of ESG is becoming increasingly important. While sustainability in companies initially began with a primary focus on environmental aspects, today, many are starting to recognize the impact of addressing the social drivers.

"It reflects a company's external reputation and internal culture. Critical aspects such as health and safety, human rights, diversity and inclusion, community engagement, employee well-being, gender equality, and ethical supply chain management have come into the spotlight. Companies striving for holistic sustainability must increasingly focus on fostering positive social impact alongside their environmental and economic objectives. At 3Shape, the social pillar is firmly embedded in our ESG strategy internally and externally."

"Involvement and engagement internally are prerequisites to embedding sustainability in any organization."

Much of the work involves collecting data and reporting the company's status concerning various sustainability parameters. For this, the ESG team needs support from both internal and external stakeholders. The data is summarized to pinpoint where the company can improve its sustainability with the highest impact and identify the most critical KPIs to report. While it can sound tedious, Henriette sees the data collection process as a great way to involve everyone in the company.

"One of the most important tasks of the ESG team is to make the entire organization understand what we do and need. The team asks busy people across the company to spend valuable time analyzing their processes and delivering accurate data. ?Happily, instead of grumbling and pushing back, people are excited about the opportunity to contribute to sustainability. This is largely because they are well-informed about our ESG commitment and strategy. Effective internal communication is one of our ESG team's greatest achievements. Involvement and engagement of the employees are prerequisites to embedding sustainability in any organization."?

"How the employees take ESG to heart and energetically act in their spare time excites me most.”

The ESG team has been creative, keeping sustainability top-of-mind internally. A "Sustainathon" was included in the annual hackathon as an extra track, where employees were challenged to come up with innovative ways to improve sustainability in products, production, or operations. Engagement is strong and still growing. Many independent employee-driven ESG initiatives are running alongside the corporate ESG strategy. These include humanitarian aid collections, routines for CO2 reduction at the workplace, events promoting diversity and inclusion, and more.????

Henriette says, "How the employees take ESG to heart and energetically act in their spare time excites me most. It shows that ESG awareness is strong in our company, as it should be when our mission is to make products that improve people's health worldwide. There are different ways to start one's ESG journey. Some companies employ an ESG consultant agency for both practical reporting and for establishing internal awareness. At 3Shape, we took a different approach and built our ESG awareness from the bottom up. This was only possible because of our employees' can-do attitude and high engagement. Innovation is what we are best at; we innovate with passion, and this carries over to our ESG agenda."??

While Henriette believes that the ESG team could exist in other departments in an organization, she sees certain advantages in having it tightly knit with legal functions.

"The regulation and compliance deliverables can be complex, but they have a framework that legal professionals are familiar with. ?We know the methods, how to fill out reports, and check the details. That's all the lawyer stuff, and we can do it efficiently. But the overall ESG strategy and stakeholder communication is different and requires empowering other professional profiles to drive it." ?

"We've learned valuable lessons on our ESG journey.

Henriette sees a company's ESG journey as a learning process, with each step making you better and wiser. She believes that there is no one-fits-all template for an ESG strategy. "It starts with your values and mission as a company," she says. “We’ve learned valuable lessons on our ESG journey.” Reflecting on her experiences to date, Henriette believes that she has some helpful tips to pass along. Henriette’s 5 tips for your ESG journey:

• "You need to develop an ESG strategy that aligns with your business and purpose. In our case, 3Shape is an innovative company that aims to enable superior dental care for patients everywhere. Our ESG strategy includes documenting how we improve dental health and creating sustainable products through innovation.
• On the practical side, it makes sense to get the company's legal professionals' support for handling reporting, regulations, and compliance requirements. They know the drill, can easily learn the procedures, and won't get overwhelmed by detail or bogged down by unnecessary perfection.
• Make involving the organization a top priority and work actively to gain their full support and engagement. Create a comprehensive communication plan to share information about the ESG team's activities and offer relevant knowledge about sustainability. But don't preach or dictate; instead, you should involve people and encourage independent employee initiatives. ?
• When digging into your ESG status and defining your strategies, the more data you can gather, the better. Requesting data is a great way to engage employees, so keep asking. However, make sure you carefully prioritize your strategy's ESG pillars according to impact and realistic objectives. Don't fall into the trap of trying to focus on everything or copying other people's ESG strategies. Your ESG goals should support your own business and be obtainable through it.
• Most importantly, ensure you have the right people around you to drive ESG in your company. You will want to have people who are passionate about sustainability in general, can see the bigger picture, and are not limited by short-term business interests alone. In my experience, a visionary and broad approach moves the needle and benefits the business, the employees, and the people we serve."

ABOUT HENRIETTE STAKEMANN

Henriette Stakemann is the General Counsel at 3Shape, overseeing the Legal, Intellectual Property, and Sustainability functions. Her primary ambitions include advancing digital dentistry globally and fostering the growth and development of talented employees across the organization. Henriette holds a master's degree in law from Copenhagen University. Before joining 3Shape, she practiced law at a distinguished law firm in Copenhagen, gaining expertise in a broad range of legal disciplines. Outside of work, Henriette enjoys spending time with her husband and two children, either in Frederiksberg or on the island of Bornholm, where she relaxes with family and friends.

Want to know more? Further Readings:

Sustainability, Our Impact. 3Shape.com: https://www.3shape.com/en/our-story/our-impact

3Shape’s ESG Report 2023: https://3shape.widen.net/s/zqlvlqqmzj/3shape-esg-report-2023