Preface
A note from the author: “I wrote this short case study a few years ago. Due to the nature of the report, I was restricted to about 1,000 words. What follows is a rather superficial assessment of two sustainability goals as they relate to Rheinmetall. Given the size and nature of this organisation, it would be easy to write a paper the size of a thesis, or even a book, but for my purposes the below met the criteria. This paper differs from our other blog articles due to it’s more formal language. If you’re not interested in academic writing or looking for particular sustainability information, it’s probably not for you. You’ll note that it has a list of references at the end for those looking for more information. I welcome your comments and questions, especially if one of the linked resources is no longer available.” – Ewan Williams, October 2024.
Table of Contents
Executive Summary
We are at a critical point in our planet’s history: an existential crisis. Driven by the ever-increasing complexities and evolution of life as we know it, a turning point was reached in 2015 when all United Nations Member States agreed to the 2030 Agenda for Sustainable Development (The 2030 Agenda; United Nations, 2015).
The most widely used definition of sustainable development (SD) comes from the Bruntland Commission Report (1987), which stated that SD was “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”
The remainder of this document will examine Sustainable Development Goals (SDGs) eight and seventeen in the context of Rheinmetall Group (RG), a large multinational corporation, through challenges and opportunities, key findings, and recommendations for the future.
First Peoples Perspective
Before we examine those topics more closely, an important issue that needs closer examination is the perspective of First Peoples.
Oftentimes marginalised economically and socially, with the imposition of cultural and social costs with few benefits (O’Faircheallaigh, 2013) there is concern among the scientific community that Indigenous people’s voices are still not being heard, driven in some instances by a desire to achieve universal homogeneity of priorities and views (Yap & Watene, 2019; Watene & Yap, 2015; Carling et al., 2017).
For the betterment of our planet, First Peoples’ culture, history, values, beliefs, rules, taboos, worldviews and language must be considered to successfully respond to ecological and developmental challenges and ultimately achieve the SDGs outlined in The 2030 Agenda. The impetus for this is driven by the scientific and logical validity of indigenous knowledge, knowledge that is complex, complete, dynamic and practical (Battiste, 2002; Sillitoe, 1998).
A point that is often overlooked is the diverse knowledge and deep connection with the environment that First Peoples have, which, along with enduring cultural cohesion, has contributed to the sustainable use and management of natural resources (Magni, 2017). Research suggests that understanding Indigenous ways of life affects positive change in fields such as ecology, biodiversity, health, education and others, to name just a few (Warren et al., 1993; Agrawal, 1995; Agrawal, 2002)
Rheinmetall Group & The Sustainable Development Goals
RG is a large multinational defence and automotive conglomerate of 198 interconnected companies. It has a physical footprint in 33 countries but operations in 137. As a result, RG has a moral and economic need to effect positive change in relation to the SDGs.
While RG already heavily focuses on various environmental and people-oriented goals, including diversity and inclusion, the eradication of forced labour, etc. (Rheinmetall Aktiengesellschaft, 2021), only 21% of employees across the organisation are women (5,222), a decrease of 117 from 2019.
Generally, roles in the defence and automotive industries are heavily preferred and occupied by men. The number of women in the organisation and the decrease in their numbers could be linked to cultural issues, created by conscious and unconscious bias. Research suggests that identity-related challenges and a lack of acceptance and inclusion drive women away from the automotive industry (Bullock, 2019; Deloitte Development LLC, 2020).
Other research found that firms with women on the board within the automotive industry perform better than those without (Horak & Cui, 2017), while RG reported that fewer women occupy management positions when compared with other industries or branches of industry (Rheinmetall Aktiengesellschaft, 2021).
It is conceivable that opportunities for career advancement are not presented as readily to women as they are to men and that the research by Horak and Cui (2017) would find similar results if replicated across the various managerial and non-managerial areas of the business when looked at in isolation.
Therefore, it is imperative that RG focus more completely on SDG #8 and, specifically, the requirements to promote safe and secure working environments for all workers, especially women, to address these shortcomings. RG should assess the cultural environment across manufacturing locations, companies, and countries to identify shortcomings and look for ways to attract and retain talented women.
The second SDG we will examine closely concerns strengthening the means of implementation and revitalising the global partnership for sustainable development. RG has an extremely complex and fragmented supply chain (Rheinmetall Aktiengesellschaft, 2021), with operations in ~70% of the planet’s nation-states.
As a result, RG needs to lead from the front and require suppliers to work toward the 2030 Agenda. Seles et al. (2016) found that pressures exerted by a ‘leader’ extended environmental pressure on organisations throughout the supply chain, both directly and indirectly, influencing green supply chain management adoption.
While delivering on environmental and human rights due diligence in this environment is challenging, RG has an exceptional opportunity to make meaningful changes here. A study by Wolff et al. (2020) suggests that transforming companies like RG into sustainability leaders requires a framework centred around a cross-departmental “SDG Owner” to bridge the divide between top-level strategy and operational implementation. This approach helps negate common misunderstandings, failures, and the application of measurable goals, something RG could benefit from should it be implemented across the business.
Conclusion
In summary, RG has a global footprint and works with stakeholders across government, NGO’s, private industry, academia and not-for-profit organisations. RG’s reach and influence are unique, rivalled by a limited number of global companies and envied by many others. While this paper focuses on two separate yet connected SDGs, the complete picture is far from that simple (see Appendix A below for a complete breakdown). While RG is well entrenched and focused on the SDGs of The 2030 Agenda, some fundamental shortcomings have been raised here that require an institutional reassessment to deliver better outcomes.
Appendix A
| Sustainable Development Goal | Level of impact on Rheinmetall | Specific targets | Comments |
| End poverty in all its forms everywhere | Indirect | N/A | While not directly capable of affecting or contributing to this goal, Rheinmetall can focus on full and productive employment, as well as decent work for all |
| End hunger, achieve food security and improved nutrition and promote sustainable agriculture | Indirect | N/A | While not directly capable of affecting or contributing to this goal, Rheinmetall can focus on full and productive employment, as well as decent work for all |
| Ensure healthy lives and promote well-being for all at all ages | Moderate | #3.6, 3.9 | Vehicle manufacturer, need to focus on safety. Low or no emission technology for vehicles, while also managing environmental challenges of manufacturing |
| Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all | Moderate | #4.3, 4.4, 4.5, 4.b | Work more closely with vocational and tertiary education institutions, provide learning opportunities for students. |
| Achieve gender equality and empower all women and girls | Moderate | #5.1, 5.5, 5.b, 5.c | Automotive and defence industries highly masculine, both conscious and unconscious bias present in the industry |
| Ensure availability and sustainable management of water and sanitation for all | Minor | #6.3, 6.4, 6.5, 6.6, 6.b | Responsible environmental management policies. Working with and supporting the local communities we operate within. |
| Ensure access to affordable, reliable, sustainable and modern energy for all | Indirect | N/A | While not directly capable of affecting or contributing to this goal, Rheinmetall’s innovation in automotive solutions and other industries could yield positive outcomes |
| Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all | Severe | #8.7, 8.8 | Huge organisation, need to set an example and use its strength to influence upstream and downstream stakeholders, especially with regards to the green economy |
| Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation | Severe | #9.2, 9.3, 9.4, 9.5 | Need to be at the forefront and lead by example, focus on partnerships with SME’s throughout the supply chain etc. |
| Reduce inequality within and among countries | Moderate | #10.1, 10.2, 10.4, 10.b | With 198 companies across 33 countries, that collectively operate in 137 separate countries, inaction only exacerbates the situation and results in continued negative outcomes |
| Make cities and human settlements inclusive, safe, resilient and sustainable | Moderate | #11.2, 11.6, 11.a, 11.b | Advanced engineering and automotive business with a focus on R&D and emerging technologies, can be part of the solution |
| Ensure sustainable consumption and production patterns | Moderate | #12.2, 12.4, 12.5, 12.6, 12.a | Manufacturer in the defence and automotive space, among other industries. Continue with sustainability reporting and other initiatives. |
| Take urgent action to combat climate change and its impacts | Moderate | #13.2, 13.3, | While Rheinmetall already have a focus on sustainability, national policies and strategies for this Sustainable Development Goal could have a moderate impact on the business |
| Conserve and sustainably use the oceans, seas and marine resources for sustainable development | Minor | #14.1 | Continued management of potential sources of ocean pollutants |
| Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss | Indirect | #15.a, 15.b | Potential financial impact but would be by choice i.e. funding to aid in conservation and sustainability |
| Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels | Minor | #16.2, 16.4, 16.5, 16.b | As a multinational company with a complex supply chain we need to lead by example and require upstream and downstream suppliers to do the same |
| Strengthen the means of implementation and revitalize the global partnership for sustainable development | Severe | #17.6, 17.7, 17.8, 17.10, 17.16, 17.14, 17.15 | As a company that is a leader, with close ties to governments in a number of countries, we’re uniquely positioned to engage with and support the revitalisation of global partnerships across government and non-government entities to help achieve the sustainable development goals of the world, as well as Rheinmetall itself |
References
While all links worked at the time of publication, please leave a comment where resources are no longer accessible.
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- Agrawal, A. (2002). Indigenous knowledge and the politics of classification. International Social Science Journal, 54, 287–297. https://onlinelibrary.wiley.com/doi/pdfdirect/10.1111/1468-2451.00382
- Battiste, M. (2002). Indigenous knowledge and pedagogy in First Nations education: A literature review with recommendations. Apamuwek Institute. https://www.afn.ca/uploads/files/education/24._2002_oct_marie_battiste_indigenousknowledgeandpedagogy_lit_review_for_min_working_group.pdf
- Brundtland, G. (1987). Report of the World Commission on Environment and Development: Our Common Future. https://sustainabledevelopment.un.org/content/documents/5987our-common-future.pdf
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