Marking the National Sustainability Day, which today, September 25, is celebrated for the first time in Portugal, Bondalti's Sustainability and Climate Transition coordinator, Susana Carvalho, gives us her perspective on this concept, its evolution and the important path that the company has taken in this field.
Why has the concept of sustainability entered the lexicon of companies so incisively in recent years?
Well, I would say more incisively in the post-pandemic period. In fact, the concept of “sustainability” appeared in the 60s of the century. XX with the Club of Rome, but was formally assumed after the publication of the Bruntdland Report in 1987 and with the United Nations Conference on Environment and Development (Earth Summit) in 1992 - Rio Conference.
I believe that the topic has gradually gained relevance with the progressive publications of the IPCC - Intergovernmental Panel on Climate Change on climate change, but also through the strength of the United Nations with the definition of the 8 Millennium Goals in 2000 and then the 17 Sustainable Development Goals (SDGs) in 2015. I believe that the first major global qualitative leap has taken place here. The Millennium Goals focused essentially on social issues and aimed at action by Member States and their governing bodies. The SDGs began to integrate a very holistic view of ESG issues and, above all, began to aim at the participation of the entire society. Government, public and private institutions, the business sector, the tertiary sector, collectives and individuals are called upon to take concerted action with very specific objectives, goals and indicators that are effectively monitored by the United Nations.
And then the global pandemic struck. Then, perhaps even more disruptive, a new leap took place, placing ESG topics definitively on the agenda of policymakers, investors, managers, entrepreneurs and civil society in general, but especially in younger generations (Millennials, Generation Z, Alpha).
The pandemic “lifted the veil” from many issues that society was not dealing with with due seriousness and urgency. And the themes are not only related to environmental issues and the climate crisis. Then it was also clear that, even with the economy completely locked down for months, we would be able to achieve the necessary reduction in carbon emissions, to avoid an increase in the global average temperature below 1.5ºC.
But many other themes emerged, social disparities and inequality in access to opportunities, the difficulty of accessing education for young people and girls, the South-North hemisphere disparities in access to information and communication media, the scarcity of access to drinking water, the loss of biodiversity at a much higher rate than normal...
In the business sector, difficulties have been intensifying and demonstrating how these issues are impacting business competitiveness. The problems associated with globalization and the specialization of each nation's economies were exposed, namely in large supply and logistics chains due to the scarcity of raw materials, materials, or even specialized labor. The risks associated with climate change and the strong dependence on natural capital were also exposed, leading organizations to urgently review their business models to adapt, remain competitive and guarantee their survival in a new reality that we are now beginning to observe as a much more probable scenario than we previously imagined.
When a company sets up its strategy of supply chain, for example, you will already have to consider very different risk scenarios: climate risk, failure to supply fundamental raw materials, dependence on suppliers, large transportation circuits that impact financial and environmental performance, risks associated with human rights, ethics, among others.
Not to mention the tight scrutiny at the level of financial entities and shareholder structures, as well as the strong regulation, especially in the EU, which have imposed enormous pressure on these matters.
Investments are no longer measured only in financial return, they are measured in ESG returns.
How do you consider that the three pillars of sustainability - economic, social and environmental - are intertwined?
It is important to distinguish the concept of “sustainability” from the acronym “ESG” (Environmental, Social and Governance). Sustainability is a deeper and more holistic fundamental concept. We could say that the concept of sustainability is related to the purpose and the mark that we want to leave on the world (impact). In more business language, sustainability could be the”Break Even” between the negative and positive impact of an entity on the planet and on people. If an organization wishes to move to the “positive side”, it must incorporate regenerative models, that is, to give back more than it takes.
The acronym ESG was initially incorporated by the financial system and is closely related to indicator monitoring, and Reporting, in the three main economic, social and environmental pillars. Basically, it represents the way in which the organization is impacted by the world.
But, without a doubt, we cannot talk about sustainability without talking about these three pillars. It is exactly the point of balance between them that defines an organization's capacity to be (or not) sustainable. It doesn't make sense to talk about environmental impacts without talking about people. The impact we have on nature directly affects people's quality of life. On the other hand, the availability of materials in nature is the capital that maintains the functioning of the industry and the economy, with an impact on financial results.
The overlap is constant even if it has a greater impact on one of the pillars.
That's why these issues are so complex, totally cross-cutting, they touch us all and everyone is called to participate. No one can be left behind.
In what way does your team's work intend to contribute to the sustainable development of Bondalti and the purpose of generating a positive impact on society?
The Sustainability and Climate Transition team is responsible for working with all areas of the organization to define the strategies and programs that will allow us to achieve Bondalti's ambition and purpose.
We have an obligation to understand the specific needs and objectives of each area to ensure that we are united and to “row” in the same direction. But also to bring some common language, clarify and implement all the tools necessary to optimize processes, so that the objectives of each department effectively contribute to Bondalti's global commitment to sustainable business.
We are committed to studying and seeking solutions Win-win that respond to those commitments and ambition. To identify the areas where Bondalti has the capacity to generate a real positive environmental and social impact and to channel all efforts so that this impact occurs and achieves the desired results not only in the short term, but especially in the medium and long term.
The future essentially involves sustainable innovation. Rethink processes, business models and the entire value chain to identify partnerships, symbioses and transform risks into new opportunities that are reflected in economic, environmental and social results.
