Challenge

In 2018, Nexans, a leading energy cable company, faced significant challenges. The business was struggling financially, nearing bankruptcy, and had a fragmented approach to carbon neutrality. The company lacked a cohesive strategy to integrate environmental sustainability into its business model, making it difficult to secure buy-in from key stakeholders.

Solution

Under new CEO leadership, Nexans introduced the ‘E3’ business strategy which stands for Economie, Environment, Engagement (or Prosperity, People, Planet), leveraging an unprecedented data analytics approach to align economic success with environmental responsibility and employee commitment. Key strategies included:

• Sustainability Integration: Committed to Net Zero emissions by 2050 and integrated SDGs into the corporate strategy.
• Profit Growth Focus: Shifted from organic volume growth to profit growth, supported by a few institutional investors.
• Complexity Reduction: Reduced the client base from 13,000 to 4,000 and cut product references by 30%, focusing on profitability and carbon emission reduction.
• CO2 Emission Constraints: Implemented a carbon emission cap on the highest-emitting unit and evaluated investments with a hypothetical carbon tax of €200 per ton.
• Circular Economy: Embraced the mantra ‘today’s waste is tomorrow’s profit’ and launched recycling initiatives and RECYCÂBLES, France’s leading cable recycler.
• Systemic Indicators: Balanced economic profitability with environmental and social responsibility, transforming supply chains, financing models, and local production units.

Impact

The E3 strategy tripled Nexans’ profit and reduced its carbon footprint by 30% since 2018. Record profitability was achieved in early 2024, driven by a 14% increase in electrification-focused business. Strategic acquisitions, like Triveneta Cavi, bolstered its European presence. Nexans’ approach of prioritizing profitability over revenue growth, coupled with its commitment to sustainability, set a new industry standard, demonstrating the financial benefits of sustainability and securing strong stakeholder buy-in.