Incorporating ESG factors into business strategies for increased corporate competitiveness
Integrating ESG factors into business strategies is an investment in long-term success and a chance to forge stronger links with all stakeholders. During today’s conference ‘Leadership and strategies for leading social-impact companies, organized by Esade and the SERES Foundation, senior managers of Canal de Isabell II, the Association of Registrars and the Indukern Group analyzed the challenges and opportunities of incorporating ESG factors into corporate strategy and culture, and how this affects competitiveness.
The managing director of the SERES Foundation, Ana Sainz, highlighted that “if we are to consolidate a new way of doing business and build a future that bridges the gap between economic and social progress, we must situate ESG factors and people at the heart of our business strategies.” “Leaders have a crucial role in transforming corporate social responsibility into opportunities inside companies. Whilst it’s true that regulatory frameworks have encouraged companies to implement ESG considerations as one of their most strategic assets, the big difference lies in how they are integrated with and linked to the business. This is the only way we can rise to the challenges we face and make our companies more competitive and profitable,” she commented.
Ignasi Carreras, professor and director of NGO-NPO management training programs at the Esade Institute for Social Innovation, said that “the advancement of ESG criteria in recent years has situated them increasingly at the heart of companies. In this strategic evolution, responsible leadership plays an important part in business purpose and its ability to make a social impact. Incorporating ESG considerations into the innovation of these processes is a crucial part of companies’ outlooks, and multi-sector collaboration is a key tool for making a bigger impact on society."
A transversal challenge
One of the main issues addressed by these senior managers was the importance of transversality. They agreed that sustainability is not the responsibility of just one department or individual but of the entire organization. According to Mariano González, CEO of Canal de Isabel II, “sustainability is emerging as a cornerstone of our value chain and this can be seen at Canal de Isabel II in the thought given to ethical, social, environmental and good governance issues by our board of directors, our executives and the stakeholders we work with.” María Emilia Adán, dean of the Association of Registrars, highlighted that “its impact in terms of sustainability involves regarding all employees as ambassadors of the corporate ESG policy.” Raúl Díaz-Varela, vice president and CEO of the Indukern Group, added that “people are the company’s driving force”, and explained that “thanks to their commitment and dedication these actions make an impact”.
As regards the main challenges facing companies, Raúl Díaz-Varela, vice president and CEO of the Indukern Group, pointed out that “although great progress has been made, there is still a long way to go regarding the supply chain: this is one area of the pharma industry that still has room for improvement.” In the case of Canal de Isabel II, the CEO Mariano González mentioned that they are “at the forefront of innovation and sustainability, tackling water shortages with bold, forward-looking solutions to ensure sustainable water supplies for future generations.”
María Emilia Adán, dean of the Association of Registrars, stressed the importance of tackling greenwashing “by ensuring that advertising about corporate sustainability is verifiable and reliable”, and likewise the complete digitization of records without creating new digital divides. “Our grass-root network of offices enables us to maintain a presence in very small towns across Spain and provide customer service in person and online,” she pointed out.
Ana Sainz, managing director of the SERES Foundation, regards the challenge as “being able to measure and underpin the importance of social considerations.” “It’s essential for companies to be able to measure their social footprint and know how to communicate this impact in a clear, concise and transparent way. We’ve created the SERES Social Footprint Map®, a series of indicators for measuring and assessing a company’s social impact in an objective, homogeneous and comparable way, that covers the most important sectors of the Spanish economy, business organizations and public entities.”
Since 2011, the Esade - SERES Foundation Lecture Series has brought together more than 130 speakers in nearly 50 sessions giving future managers an insight into trends, experiences and good business practices in the ESG realm.
