Sustainability has become a competitive pillar for business success. During nexos+1 Forum Latam 2024an event held by the consulting firm Dragonfly, left a clear and strong message: consistency, strong governance and communication are key to implementing effective sustainable practices. Companies must approach sustainability from within, establishing robust governance and using accurate data for decision making, then communicate their actions effectively and develop sustainable products and services. This article explores how companies can integrate sustainability into their core and extend its impact outward, benefiting on multiple fronts.
"Being sustainable starts with the most important verb: to be," emphasized María Paula Duque, Microsoft's sustainability leader for Latin America, on the importance of sustainability starting from within organizations. "First we work on being sustainable ourselves and producing technology to measure that sustainability." Governance and data are essential to build a solid foundation for sustainability within companies. Duque emphasized that "There is no sustainability without data."The company's management team has been working on a number of issues, underlining the need for accurate, real-time information to make informed decisions. Without it, reporting can be outdated and ineffective.
For sustainability to be effective, it must be consistently integrated into the business strategy. This approach not only involves managing risks and opportunities, but also offering products and services that promote sustainable practices among clients. "If we were going to have these decarbonization conversations with our clients, it was very necessary for us to have a commitment as well," commented Darice Gubbins, head of sustainability at Credicorp Group. This internal commitment strengthens the credibility of companies when interacting with their customers and other stakeholders, ensuring that your external actions reflect your internal values.
Gubbins also emphasized the importance of a sound governanceGovernance is key to have visibility of progress in the implementation of the strategy". Strong governance ensures that companies can track their progress and meet their sustainability objectives in a transparent and effective manner.
The importance of transparency and effective communication
Transparency and effective communication are key to gaining trust with investors and other stakeholders. Gustavo Guerra, director of País Circular, in his speech stressed the need to avoid greenwashing and promote transparency: "If you communicate through transparency, you will achieve your objectives.". In addition, pedagogy and openness to debate are essential for effective sustainability communication. Companies must be honest and clear about their sustainable actions and objectives to genuinely connect with their audiences.
Olga Cantillo, executive president of the Panamanian stock exchange Latinex, mentioned that "it is important to communicate environmental, social and good corporate actions, known as ESG for its acronym, because it offers multiple benefits for the companies that are listed.". This includes greater transparency, trust, and credibility, crucial elements for attracting and maintaining investors and strengthening relationships with all stakeholders.
Expectations in corporate communication and disclosure are evolving rapidly. This was confirmed by Andrea Pradilla, director for Latin America of the Global Reporting Initiative (GRI). "We have stakeholders who are much better informed and much more interested in the management and sustainability of a company." Not only investors, but also academia, communities, civil society, and employees are increasingly interested in sustainability. This increases the pressure on companies to be transparent and effective in their management of environmental and social impacts.. International standards such as the GRI foster an internal culture of sustainability by setting clear and ambitious expectations. By following the GRI, companies should evaluate and disclose their practices and results, identifying areas for improvement and promoting transparency.
By integrating sustainability into their core, with strong governance and the use of accurate data for effective decision making, and extending their impact outward through transparent and consistent communication, companies can build leadership and trust. This enables them to meet the expectations of an increasingly demanding and informed range of stakeholders.
