The European Commission estimates the investments necessary to meet the zero emissions goal in 2050 at 1.5 billion annually. “It is a very significant evolution in all sectors and professions. Being a systemic change, all areas of organizations, and all levels, will be affected. From strategic planning to data management, passing through the rest of the functional areas such as marketing, operations, legal, commercial and distribution,” says E&Y in its report: Is the Spanish company prepared for sustainable transformation? The consulting firm concludes in its analysis that “78% of organizations perceive that they integrate sustainability into their purpose and values.” Although the achievement of objectives is being relevant, the race must continue. “Large Spanish companies have made significant progress in adopting sustainable practices, although there is still room for improvement. The entry into force of the corporate sustainability reporting directive (CSRD) has meant progress in the incorporation of sustainability, transparency and reporting policies, but not at the same pace as some of the main economies such as Germany or the Nordic countries, where It is deeply integrated into corporate strategy and culture,” explains Isabel Sánchez, professor at the Universitat Carlemany (UCMA). Likewise, there are distinctions between companies. “In general, the number of listed companies with a business model linked to the SDGs is increasing. Two-thirds publish the emissions generated throughout the value chain, but only one in four reports on how it integrates the circular economy,” says Àngel Castiñeira, from Esade Business School.More informationIn this sense, Isabel Sánchez points out that there are challenges important. “Many companies evaluate their suppliers based on sustainability criteria, including the use of recycled materials, reducing their carbon footprint, and meeting labor and environmental standards. However, complete implementation is complex, especially when it involves regions with less regulation or different levels of commitment to sustainability,” warns the expert. From Aena, which is listed on the Ibex 35, they recognize, for example, that “the transformation of the sector «It will not be possible without the involvement of all aviation actors.» For this reason, “it works collaboratively with airlines, handling agents, as well as with commercial concessionaires, employees and with the passengers themselves.”
Regulations and suppliers
For its part, Naturgy, also a member of this stock index, claims to have “a responsible supplier management model based on the assessment of risk factors, and examines the management mechanisms and controls that have been established, so that ensure performance equivalent to that of the operations carried out by the company itself.” Consumers and investors are another pillar of the green business. “They are increasingly looking for sustainability in their decision-making. So much so that unfair practices have proliferated, where investment funds and companies seek to position products as sustainable without being so,” says May López, from EAE Business School. This type of action has led to new regulations, such as the European directive against greenwashing for better consumer information, or the draft Sustainable Consumption Law in Spain. The link with variable remuneration is one of the highlighted requirements by experts to achieve objectives. “If they want to be sustainable over time, move forward and comply with regulations, the remuneration of their senior managers, but also of the rest of the organization's team, should necessarily be linked,” says May López. “Europe is the region where the proportion of listed companies that include environmental, social and governance (ESG) metrics in their incentive plans for managers is higher than the rest, with Spain being the third with the most weight, since 97% of the members of the Ibex already do it,” adds the professor.More informationAlthough the achievements are notable, the companies have pending actions. For Isabel Sánchez it is important to “integrate sustainability criteria into all strategic decisions; improve supply chain traceability and transparency; an increased focus on social sustainability, such as the well-being of employees and local communities; adapt and become resilient to climate change, not just mitigate it; establish metrics that help quantify the impact of not being sustainable, and establish internal communication protocols to integrate sustainability into decision-making, having a top down–bottom up approach.” Harmony is also important. “The systemic change that is affecting the world requires that social actors share more information and work together to find collective solutions to common problems,” highlights Ferran Curtó, from Esade Business School.
The AI factor
The emergence of artificial intelligence (AI) opens another avenue for action in business sustainability. “We are still not aware, neither as users nor as organizations, of the impact,” warns May López, from EAE Business School. “Currently the focus is on information on CO2 emissions, where the use of renewables or emissions compensation masks the real impact of the technology; This will be that great catalyst that allows us to move towards a sustainable world, but it must be guaranteed that its development and the associated ecosystem comply with the legislation and contribute to it.”
Isabel Sánchez, from UCMA, adds that “companies are beginning to consider the impact of AI, cloud services and data centers on their sustainability.” “Energy-intensive sectors, but that offer tools to improve operational efficiency and reduce the environmental impact of other industries. Approaches such as the use of renewables in data centers and the optimization of algorithms to reduce consumption are being adopted.”