Profitable sustainability as a driving force for global change

Faced with the planet's social and environmental crisis, sustainability is here to stay. A trend that is growing around the world, with the help of the best technological solutions.

Until recently, organisations could afford not to implement sustainable policies. Today, that is no longer possible.

The profound social, environmental and economic problems facing our planet, exacerbated by the devastating effects of the Covid-19 pandemic, have made sustainability a crucial aspect of the business strategy of companies around the world.

Sustainability is no longer an option for those organisations that want to grow and succeed, but an imperative.

The new paradigm is sustainable profitability. What does that mean? It means generating economic growth while looking after the environment, protecting natural resources and contributing to community development.

Many companies are already doing this, and with satisfactory results. According to a recent survey carried out by Bain & Company and EcoVadis among more than 100,000 companies around the world, it was concluded that activities related to environmental, social and corporate (ESG) factors had a positive impact on the financial performance of these organisations.

The study showed, on the one hand, that sustainable businesses are more profitable and, on the other, that sustainability should not be considered a cost, but a very profitable investment if carried out with commitment and responsibility.

Moment of truth

In September 2015, the member countries of the United Nations approved the 2030 Agenda for Sustainable Development, with 17 Sustainable Development Goals (SDGs) that seek to eradicate poverty, protect the planet and guarantee prosperity for all its inhabitants.

Today, the UN authorities themselves recognise that the planet's difficulties have increased and that the efforts made to achieve the goals have been insufficient.

Forética, one of the main global organisations working for sustainability, recently stated that "the moment of truth has arrived".

That's why, with seven years to go until 2030, it's becoming increasingly essential for companies to redouble their efforts on climate and environmental issues, incorporating new ways of producing, investing in renewable energies and the efficient use of natural resources.

The time of "green consumers"

Another aspect that is increasingly helping to strengthen sustainability in companies is the behaviour of consumers, who prioritise sustainable products when deciding what to buy.

Previously, the main motivations for choosing where to spend their money were price and quality. Today, a significant proportion of consumers also want to know the origin of the product and learn about its production stages.

According to a NielsenIQ study, 69 per cent of global consumers feel that sustainability is more important to them than it was two years ago.

People's greater awareness of the products they consume makes them cling to and defend brands that demonstrate a strong commitment to the environment and society, or discard them quickly if they don't meet their expectations.

So-called "green consumers" have a direct impact on both the economy and the reputation of organisations, and force them to pay more attention to the type of energy they use, the carbon footprint they generate and the production processes they adopt. Ultimately, companies need to be prepared to offer better answers in an increasingly sustainable world.

Sustainability and technology

Technology plays a fundamental role in enabling organisations to develop their sustainability strategies. There are tools to control carbon footprint emissions, monitor energy efficiency with artificial intelligence, optimise the use of polluting means of transport, manage waste, audit different stages of the logistics chain and improve inclusion and diversity policies, among many other sustainable initiatives.

SAP, the world leader in business software, is one of the companies offering the greatest number and variety of tools. Through SAP Cloud for Sustainable Enterprises, it offers cloud-based solutions so that its customers can easily become socially responsible companies.

For example, SAP Sustainability Footprint Management helps organisations decarbonise their value chains with software that calculates their carbon footprint. SAP Responsible Design and Production, meanwhile, supports companies in designing their products sustainably and implementing a circular economy. In addition, the entire logistics chain, from start to finish, can and should be sustainable, and SAP has furthered this goal through SAP Digital Supply Chain Management.

In order for organisations to incorporate this type of technology safely and reliably, SAP's business partners play an essential role. These include SEIDOR, with over 40 years of global experience, mem

An essential way forward

In a world plagued by constant crises, wars and pandemics, companies are increasingly investing in sustainability strategies. This is done to help protect the planet and also because it brings benefits.

Sustainable policies, such as recycling, water reuse, energy efficiency and utilisation of raw materials, among others, reduce production costs and save money. They also generate prestige and recognition in society and greater customer loyalty. They increase the value of companies, as the global trend is for investors to bet more and more on socially and environmentally sustainable companies. And finally, they allow companies to increase their profits.

Because sustainability can also be profitable these days. And this is the inevitable path that companies are obliged to take.