Sustainability from the outset at GESCO

Sustainability has become something of a trendy buzz word. But what really is behind the concept?

Our Sustainability Report for financial year 2017/2018 can be found here.

The company’s purpose, our strategy and our objective all focus on the long term. We want our actions today to have a lasting positive effect on the future. The majority of our companies have existed for decades. As a long-term investor in the SME sector, we continue their proven business models and develop them further. Georg Kesel GmbH und Co. KG and Werkzeugbau Laichingen-Gruppe were founded as long ago as the end of the 19th century. Dörrenberg is over 150 years old, and Frank Walz- und Schmiedetechnik even more than 175 years old. Without sustainable management, these SMEs would not be where they are today.

  • Regular investments in technical equipment ensure future viability.

    • We invest regularly in machinery, plant and information technology. Leading technological products of the type produced in the GESCO Group require up-to-date machinery.
    • WeWe see positive and constructive dealings with employees as investments in the future of GESCO. There are no satisfied customers without satisfied staff.
  • Fair dealings create sturdy relationships

    • We place emphasis on long-term partnerships with customers and suppliers, which benefit everyone involved. Fair dealings with each other, based on trust, create sturdy relationships of the sort our well-established subsidiaries have already enjoyed for many years.
    • A long-term approach characterises the relationship between GESCO AG and its subsidiaries. For example, the holding companies and the companies held reach an agreement about their respective distribution rate. In periods of strong growth and high investment, distributions are accordingly lower.
    • We earn our returns from the regular income of the companies. Acquisitions are financed exclusively by the acquiring holding company, and the operating subsidiary is not adversely affected in the process. Hence it has the financial scope to respond independently in growth periods, as well as in periods of weaker economic activity. This is another difference between us and traditional financial investors
  • Succession solutions pave the way to the future

    • Succession solutions in SMEs also mean paving the way to the future. This involves: preserving jobs, finding and nurturing new entrepreneurial individuals, and getting the company into great shape for the future