If someone asked what Acciona, Iberdrola and Inditex have in common, what could be the answer, apart from the fact that they are three important companies on the Spanish scene?
According to the Global 100, Most Sustainable Companies in the World ranking, in 2008 these three companies meet the criteria established to be included in the list of the 100 most sustainable companies in the world. This ranking assesses the risk and market value components of companies and their ability compared to the sector's peers to effectively manage social, environmental and corporate governance values.
In recent decades, in which society has become aware of the importance of making a change in habits to redirect the current situation towards sustainable development, initiatives such as the Global 100 have emerged that aim to recognize those companies that are efficient in sustainability terms. In a closer environment, groups that are affected by the activity of the company organize reflection sessions in which they bring to light issues related to sustainable development. This is the case of the Trade Union Conference on Environmental Dissemination organized by the UGT of Navarra, and which in its fifth edition had participants from different autonomous communities in northern Spain.
Sustainable development has as fundamental pillars society, the economy and the environment. Companies, as entities that intervene in the economy, act in a social environment and alter the environment, must try to develop their activity in a way that makes the economy grow, allows social development and is as least aggressive as possible with the environment environmental, that is, being a sustainable company.
But how can a company be sustainable?
There are several ways that can lead a company towards excellence in this field. Among others we can mention the efficiency of the resources used; the development of environmental policies for recycling waste, reusing materials and protecting biodiversity; the approach to social policies for cooperation and contracting; the responsible selection of the raw materials used; and the reduction of waste generated from gas emissions and noise pollution.
According to data from the National Institute of Statistics, in 2006 Spanish industry increased its industrial protection expenditures by 10.9% compared to the previous year, of which the highest percentages were used to reduce atmospheric emissions, to the management of water and waste management.
Some may wonder, what does a company gain by being sustainable? And it is true that it is difficult to measure the success factor of opting for this option since, at least in the short term, the results are not usually reflected positively in the income statement.
However, carrying out sustainable development policies presents a series of advantages for the company since it can gain efficiency, foster the interest of stakeholders and increase the added value of its products or services.
On the one hand, if sustainability is approached from a resource optimization point of view, the company can improve in terms of efficiency, which could translate into cost reduction.
However, it could be the case that, at least in the short term, being sustainable is expensive, and therefore companies that are committed to reducing production costs do not follow these policies. Despite this, what is also true is that adopting sustainable measures can be a way to prevent costs due to accidents and / or decontamination.
Also, given the growing awareness of society, stakeholders may react positively to committed proposals, which can increase the market value of the company. Of course, to generate trust among all stakeholders, it will be necessary to act with total transparency and demonstrate that there is coherence between the announced commitments and the actual behavior, which implies an over-effort on the part of the organization.
It is important to show that sustainable development policies do not remain a declaration of intent. For this, one of the most used tools today is the preparation of sustainability reports. These reports, apart from describing how things have been done, facilitate data collection, improve relations with stakeholders, favor internal communication, detect conflictive points in the development of the activity to avoid them in the future, improve the image of the company and allow to maintain reliable communication channels with investors, institutions, etc.
Even with all this, there will be suspicions who consider that many companies use sustainable development as a marketing tool, and it is that green is fashionable and consumers are satisfied with the idea of contributing to the sustainable development of the planet. Certainly there will be companies that can see important market opportunities in this movement, however, is the fact of using environmental awareness as a sales tool criticized? Is it really legitimate to carry out concrete actions that sell?
What is certain is that it is better to do that than nothing, and given that the final objective of betting on sustainable policies is positive for the whole of society, it should not matter what the initial reasons are that lead a company to make a change in their approaches.
In addition, we must not forget that for the system to be sustainable, the generation of value has to be positive for both the company and society. Falling into philanthropy would be a short-term impact tool but it could have negative consequences in the future of the organization. As in other areas of the company, social and environmental actions must be planned strategically so that both companies and society benefit from each other.
Whether or not they start as a way of doing green marketing, in the long term, sustainable policies will be inherent in the reality of the company and this will no longer add value to the activity as it will become a sine qua non condition. This has been the case of companies in the scrap metal and recycling sector, which, being forced to comply with more demanding regulations, have taken the opportunity to promote the image of the company from an environmentally friendly point of view.
But sustainable development must not be something whose responsibility is left solely to business. Consumers and institutions have a lot to say in the matter and must assume the responsibility that they have as economic agents.
On the one hand, consumers can reward or punish a company with the fact of making or not using its products or services.
The institutions, for their part, have tools with which to promote the sustainable actions of a company. An example is the initiative announced by the Spanish government in August 2008 according to which companies that have the Energy Management System certificate will have priority when it comes to being valued in public procurement.
Finally, in a situation of economic slowdown like the one we are currently experiencing, is it a good time to consider the development of an activity bearing in mind the sustainability commitments? Now more than ever, and given the high level of competitiveness of the markets, creating a model of sustainable development and growth will generate significant value for the company, initially as a differentiation tool, to end up becoming a value.
