Presentation of the 2nd Ibero-American Sustainability Observatory, drafted by EAE Business School, CEIB and FIJE

On 28th June, the CEOE in Madrid was the venue for the presentation of the 2nd Ibero-American Sustainability Observatory, drafted by EAE Business School in collaboration with the CEIB (Ibero-American Council of Businesspeople) and the FIJE (Ibero-American Federation of Young Businesspeople).

One of the key conclusions of this report is that SDG 7, Affordable, clean energy, has climbed from 12th to 1st position in the ranking of the priorities of Ibero-American organizations, compared to the same report two years ago, due to the geopolitical situation, which has affected energy costs and requires a commitment to decarbonization that the economy must embrace. 

Based on the opinion of around 300 companies and associations from 20 countries operating in all sectors, the objective of the report is to gain greater insight into the current situation and trends in relation to CSR in companies

May López, the author of the report and Director of EAE Business School’s MBA in Sustainability Management explained that “The commitment to climate neutrality and, as a result, to the decarbonization of the economy, with legislation such as the EU’s taxonomy regulations, has led to the start of divestment in oil, gas and coal, which has been further complicated by the energy speculation triggered by the current war in Ukraine. This situation affects Ibero-American organizations, driving them to prioritize SDG 7 as one pf their key overall objectives”. After the goal of affordable, clean energy, the United Nation’s Sustainable Development Goals (SDGs) prioritized by organizations are gender equality, and good health and well-being.

The research also reveals that, nowadays, CSR is strongly defined by the environmental concern (40,1%), ethics (38.8%) and integrity (26,9%) of organizations, equally in the case of companies, associations and SMEs. Moreover, climate change (24.5%) and the economic crisis (24.5%) head the ranking of the main risks faced by Ibero-American organizations over the coming years, with large companies being most concerned about the legacy they will leave in terms of taking care of the planet and natural resources. The third most pressing risk faced by organizations is the last of the 3 Cs: cybersecurity (20.4%), which reflects the growing concern among companies for protecting their data and information.

At a geographical level, the report also highlights a greater preference for the global application of CSR plans in countries in Europe, namely Spain, Portugal and Andorra, in which they are applied in 74.4% of the cases, compared to countries in Central and South America, where the figure is 47.4%. This difference is partly due to the European Commission establishing regulations that affect EU companies to a greater extent, but which have implications for the entire value chain.

SDG AND ESG AT THE HEART OF CSR STRATEGY AND MATURITY 

The 2nd Observatory highlights the key role of the Agenda 2030 and the Sustainable Development Goals (SDGs) that have been incorporated within the strategy of 40% of the organizations surveyed. Of the rest, 26% state that the process to incorporate the SDGs is under way and 30% are yet to start. In Europe, the integration is under way in 84% of companies, compared to 63% of those in Central and South America. The incorporation of the SDGs involves establish ESG criteria (Environmental, Social and Good Governance). In this regard, 70.1% of Ibero-American companies have already integrated such criteria (39.5%) or are in the process of doing so (30.3%). These criteria enable us to measure the organization’s impact and evolution in this respect.

According to the 2nd Observatory, 3 out of every 4 of the organizations surveyed (75.4%) agree that CSR will become consolidated as a natural way of doing business, in the same way as other aspects have done, such as quality.

“For the first time in history, we are witnessing a sustainability crisis. We are facing a lot of challenges and we run a great risk unless our response to this sustainability crisis is consistent, efficient and coordinated”, explained López, the author of the report and the Director of EAE Business School’s MBA in Sustainability Management. “As well as posing a challenge, this crisis is an opportunity to definitively integrate CSR and sustainability strategies throughout all kinds of organization, thereby contributing to the economic, social and environmental recovery that all the different stakeholders are demanding”, emphasized López.

“A defining characteristic of businesspeople in the 21st century is that they understand that the company has to generate a positive impact on its employees, towns, cities and regions”, added Antonio Magraner, the General Secretary of the FIJE (Ibero-American Federation of Young Businesspeople). Magraner also highlighted the importance of business organizations, which generate synergies with public institutions. “A company cannot function without a strong state, but neither can a country without a strong business community behind it”, he explained.

In this regard, the research shows that identifying and fulfilling the stakeholders’ expectations in order to offer a balanced value proposition for everybody has become the most important objective for 52% of Ibero-American organizations. In this respect, the stakeholders Environment (14.9%), Society (14.5%) and Customers (14.2%) are gaining ground among companies, followed closely by Governance (13.9%) and Employees (13.8%). Moreover, there are differences between continents, with larger companies and those based in Europe placing greater importance on the Environment. SMEs and companies based in the Americas focus more on their concern for the Employees.

THE FIGURE OF THE SUSTAINABILITY DIRECTOR: GREATER SPECIALIZATION AND A MORE CENTRAL ROLE

The cross-cutting strategic importance of issues of sustainability has made it increasingly evident that companies need to appoint a director or professional in charge of sustainability, which currently reports to the General Management team, the President or the Board of Directors. In recent years, we have witnessed a shift from “soft law to hard law” in terms of sustainability, primarily due to new legislation from the European and the rigidity of the regulations, which is reinforced by the role of the Sustainability Director. This shift can be seen by the fact that one in four Ibero-American organizations now has a department dedicated exclusively to CSR. This percentage has climbed from 82.9% to 90% in the last two years in the case of large Ibero-American companies, which generate revenues of over a billion dollars.

The Permanent Secretary of the CEIB, Narciso Casado, highlighted that both the 24 business organizations of the Council and the 17 of the FIJE have come together to “speak with a united voice for the region, showing our commitment to sustainability and CSR, a concept that is becoming increasingly mature and which we have managed to progressively integrate within our roadmap for the route ahead”.

The participants at the presentation of the report included the Dean of EAE Business School Madrid, Antonio Rodríguez; the General Secretary of the Ibero-American Federation of Young Businesspeople, Antonio Magraner, and the Permanent Secretary of the CEIB, Narciso Casado. Moreover, a round table was organized within the framework of the event, chaired by the other of the report and the Director of de EAE Business School’s MBA in Sustainability Management, May López, with a panel consisting of the Director of Communication, Institutional Relations and Sustainability of the CEOE and Secretary of the organization’s CSR Committee, Carmen Alsina; the Strategy and Business Development Director of the Bosch Group in Spain and Portugal, Emma Nogueira; the Global Director of Institutional Relations at Telefónica, Natalia Moreno; and the Director of Corporate Responsibility at Atresmedia and Associate Director of the Atresmedia Foundation, Susana Gato.