The rules that govern how companies operate have changed a great deal in a very short space of time. Over the last ten years or so, the ways in which corporate leadership, strategies and activities must live up to new standards – typically known as ESG criteria, which stands for Environmental, Social and Corporate Governance – have changed beyond all recognition. Sustainability is one such criteria that carries particular weight as we move into the second quarter of the twenty-first century.

Sustainability: the new way of positioning yourself as market leader

Developing sustainable business practices when manufacturing and/or distributing products and services, monitoring energy consumption across all industrial and logistical processes, staying conscious of the environmental footprint of your economic activities… these are all corporate dynamics that, among others, aren’t just enormously powerful market differentiators, but also ways of projecting a powerful message to society.

As people become increasingly involved, active and demanding when it comes to our current behaviour and its effects on the future, being a sustainable company isn’t just the right thing to do anymore – it also allows us to lead from the front and take a stand when it comes to the environment. And while many organisations might claim they care, only a select few really follow through with concrete actions and strategies.

What are the benefits of taking action on sustainability for companies?

Making a firm commitment to sustainable practices and strategies will bring solid benefits to any company. According to the 2022 ODS barometer, 54% of companies see direct cost savings and 52.7% experience a direct reputational boost. Despite this, according to the same source, just 34% of Spanish companies have put specific frameworks in place – such as the 2030 Sustainable Development Goals, for example – to help guide their efforts.

Sustainability legislation to consider

This year represents a significant milestone for sustainability, thanks to various national and European regulations coming into force throughout 2024. These will certainly have an effect on publicly available data, environmental issues and sustainable finance.

Companies within the EU with more than 500 public service employees will be forced to alter their sustainability data and reporting policies, which will have to cover the same topics and data as their economic reports, in accordance with the European CSRD (Corporate Sustainability Reporting Directive). Nationally, organisations may have to be even more ambitious. Spain, for example, has introduced separate legislation to push energy and climate policy even further.

In many ways, we’re heading towards an economic model based on corporate sustainability. Alongside laws introducing greater banking oversight, supporting documents on taxonomy and sustainable finance disclosure regulations (SFDR) are also expected to be introduced across the EU.

These laws will require companies to align their targets and strategies with new environmental and sustainability goals, promoting sustainable and ethical investment. Ultimately, it’s no longer a question of whether sustainability can be beneficial to the day-to-day running of a business. Now, it’s a case of saying to any businesses still reluctant to adapt – if there are still any left at this point – that they’ll be “forced” to change not just by social pressures, but also by law. Both nationally and internationally.