The road to corporate sustainability: How companies can reduce their environmental impact and increase their profitability
Increasingly, companies are realising that adopting sustainable practices is a winning strategy. According to several reports, companies that implement sustainability plans are more profitable than their competitors and perform better in the medium and long term.
But why is sustainability so important for companies? Investors and consumers are two key factors. Investors are looking for sustainable business models and are willing to invest in companies that adopt sustainable practices. Consumers, on the other hand, are increasingly demanding products and services based on a policy of respect for the environment and social commitment.
Companies that are committed to sustainability can improve their long-term profitability by reducing operating costs through energy efficiency or the use of renewable energies. They can also enhance their reputation, as well as attract and retain customers who value sustainable practices.
For a closer look at what the road to corporate sustainability looks like, in the next INDPULS article we will take a closer look at sustainability in industrial companies and discuss some concrete examples that are already being implemented by some of our partners.
What is (really) sustainability in business?
Corporate sustainability goes beyond a few isolated actions at specific moments; it is a way of understanding business, a philosophy of corporate life that requires a long-term strategy. Under this strategy, the company will be able to run its operations with premises that ensure the protection and improvement of the environment and the society that welcomes it.
We spoke to Joan Vilaseca, sustainability director of Girbau, a partner and founder of INDPULS, about aspects related to sustainability in industrial companies, who shared his point of view with us: “When I think of sustainability, I think of awareness, transcendence, respect, biodiversity and regeneration. In essence, generating a positive impact”.
Reasons to start on the road to sustainability
Business sustainability is a fundamental ethical issue that implies a course of action against climate change and other environmental problems. Adopting sustainable practices in business is important not only for ethical reasons, but also for its economic and market benefits.
Companies that implement sustainable strategies can outperform the market average in terms of environmental, social and governance care, according to an international analysis by the consulting firm McKinsey. In addition, these companies are more likely to attract talent, as 64% of millennials value a company’s environmental and social commitments when looking for a job, according to IBM data.
Investors are also looking for sustainable companies to provide capital, and it is increasingly common to find investment funds and managers that work with sustainability values in their shares. In Spain, sustainable investment has already reached 60.8 billion euros, according to an analysis by the National Securities Market Commission (CNMV).
“When I think of sustainability, I think of awareness, transcendence, respect, biodiversity and regeneration. In essence, generating a positive impact.” – Joan Vilaseca, Sustainability Director at GIRBAU
How to work on sustainability in companies
To make a company sustainable, it is necessary to follow a series of steps to ensure environmental protection and social responsibility in all company operations. Below are some strategies that can help to make a company sustainable:
Analysis and planning: the first step is to identify the critical points where the company is not sustainable and plan actions to reverse them. This includes issues such as electricity and gas use, paper use, sourcing of suppliers, among others.
Awareness-raising: for changes to be effective, it is necessary to make employees aware of the importance of sustainability and motivate them to join the company’s commitment. It is possible to implement an incentive scheme for those workers who are most active in sustainability actions.
Measurement: it is necessary to establish quantitative parameters and to carry out a follow-up to measure the results of the strategies and decisions that have been taken. The objectives that are set must be measurable.
New lines of business: one way to promote sustainability is to launch products, services or solutions that promote sustainability and reinforce the Sustainable Development Goals. This not only helps to improve the company’s social and environmental impact, but can also generate new business opportunities.
GIRBAU is making an important commitment to sustainability, so it is interesting to ask them about how they are working internally to achieve it:
Joan Vilaseca, highlights that “At Girbau, sustainability is at the centre, being one of the strategic pillars and with the direct sponsorship of our Chair & CEO, Mercè Girbau. Just as everyone has internalised that there will be no “Planet B”. Our goal is to create a Positive Impact on the planet and the community, beyond the calculation of the footprint in supplies, we are working on a roadmap accompanied by a solid investment plan, in order to be CO2 neutral by 2030. We already reduced our CO2 footprint by 9.4% in 2021 compared to 2020, as well as a 25% reduction in scope by 2030. We want this positive impact to transcend the organisation and our employees, which is why we are developing solutions that help reduce our customers’ carbon footprint and water footprint.”
