Corporate sustainability What types are there and why is it important?

Corporate sustainability What types are there and why is it important?

Corporate sustainability What types are there and why is it important?

Corporate sustainability What types are there and why is it important?

In this globalized world, companies face numerous challenges in order to grow, gain trust and be the best. That is why the corporate sustainability es es de vital importancia y aún más con las políticas que surgen por el bien de las personas y del planeta.

What is corporate sustainability?

The technicalities that encompass this concept are important in the business environment. The reality is that sustainability refers to the need to keep the impact of companies in moderation along three axes: social, economic and environmental. In other words, optimizing these three aspects of corporate sustainability without compromising the business or the quality of life of its environment.

Sustainability of companies is measured to analyze how their actions impact the environment and how they contribute to the common good. It allows to analyze the impact of intangible parameters such as brand value or human value and tangible resources such as materials and waste.

What types are there?

  • Corporate social sustainability:
    According to the European Commission, Corporate Social Responsibility is the responsibility of companies for their impact on society, while Sustainability is the impact on the social, economic and environmental spheres.
  • Corporate environmental sustainability
    Environmental sustainability in companies refers to the capacity of business organizations to carry out actions that favor and respect the environment, carrying out a business activity that produces the least possible impact on the environment.

     

     

  • Corporate economic sustainability
    Economic sustainability implies a context in which there is well-being and economic growth that benefits the entire community.

How to develop a culture of sustainability in companies?

In a market where consumers increasingly value the practices and commitment of brands, companies with sustainable development have a competitive advantage. This is the main vision that must be present in a company's culture in order to contribute to sustainability.

It is necessary to promote the benefits for the company through internal communication and that they can be valued, and the more tangible the data on sustainability actions, the better. Therefore, it is necessary to create an internal communication strategy and a transparent and clear corporate sustainability implementation strategy.

Parts to achieve corporate sustainability

  • Improves and boosts confidence
    Es un deber de las empresas, por su bien tanto a nivel de mercados para fortalecer la marca como a nivel empleador para captar y retener el talento.  Además, ya existe la Law 11/2018 de información no financiera y diversidad que hace que las empresas tengan que cumplir con la legislación y ello ayuda a mejorar su confianza y transparencia en los mercados.

  • Giving importance to the environment
    Global warming and human impact on the environment are the focus of the SDGs and the 2030 agenda. Companies, according to climate experts, have to care about corporate environmental sustainability. Not only in their own performance framework but with the actions of their own employees and their suppliers.

  • Supports business innovation
    Data will be a reality to be able to analyze innovation improvements in the company. The implementation of business sustainability strategies will already be an innovation factor that will have an effect on other company environments to do new things. Consequently, the company grows and improves its productivity and therefore will be able to offer improvements to its workers.

     

     

     

Advantages of sustainability in companies

Llevar a cabo y profundamente este concepto de la sostenibilidad en las empresas ayuda a mejorar el modelo de negocio tanto directamente como indirectamente. Las ventajas son numerosas:

  • Optimization in the use of resources and suppliers.
  • Monitoring of KPI's and other metrics on sustainability issues.
  • Reduction of corporate reputational and image risks
  • Image and reputation enhancement
  • Attraction of partners, customers and investors
  • Improves the commitment of the partners to each other and to the company.
  • Improved budgeting and forecasting
  • Generates new business or revenue opportunities
  • Involvement in the supplier value chain and increased control
  • New innovative products and processes in the business
  • Employee and customer loyalty
  • Increased sales

The disadvantages of not implementing corporate sustainability

The main problem or disadvantage of not carrying out corporate sustainability actions and strategies is the loss of value of the organization. Also, having a worse image than it could have. All this is missing opportunities for growth and loss of competitive advantage. In short, companies that do not implement sustainability actions and control are destined to be left behind and exposed to other companies that could take advantage of this opportunity.

Examples of sustainability in a company

In Qaleon we have developed Sineqia, a business intelligence tool that is capable of analyzing and ordering the data involving the sustainability of a company for the preparation of the Triple Non-Financial Report, according to the GRI (Global Reporting Initiative) criteria and the SDGs (Sustainable Development Goals) of the 2030 agenda. Therefore, the objective of Sineqia is to be able to carry out better sustainability actions.