INTRODUCTION AND MODULE DESCRIPTION

• In this module we can gain knowledge of business Sustainability in its three aspects, economic, social and environmental. 

• Divided into two main blocks, in the first we will discuss relevant aspects about the importance of having business sustainability plans so that, in addition to generating financial profitability, they create environmental, social and economic value. Strengthen the resilience and empowerment of women entrepreneurs, so that they have a business resilience framework that unites risk and crisis management, and thus empower women entrepreneurs in their role as entrepreneurs and leaders, increasing their participation in positions of responsibility.  

• We will also analyse how to make a sustainability plan in a company step by step. 

• In the second block we will fully enter into Sustainability in business, where we will see why sustainability in business is important, what benefits sustainability brings in business, how to create a sustainable strategy, its challenges and benefits, as well as the role of women in the world of sustainability. 

• Through inspiring case studies, analysis of emerging trends and practical strategies, we will explore how businesses can not only survive, but thrive by adopting a sustainable approach. Get ready to discover how sustainability can be the path to a brighter future and how you can be part of this transformation. Welcome to a journey towards business sustainability in times of crisis!

Any sustainability plan, in order to be successfully implemented in an organisation, must comply with at least these steps:

A) Make an initial diagnosis

Any sustainability plan must begin with an initial diagnosis, which allows us to know where we are starting or where we are. It has to identify existing environmental risks and also opportunities for improvement. That first photo is essential, since we must know what our critical points are that we need to work on.

In other words, do we know our environmental impacts? Do we know what environmental aspects we generate throughout our life cycle? Do we know what our waste is, our consumption, our emissions, etc.?

B) Define objectives and their action plan

After the initial study and prioritising the key points, the next step in our sustainability plan should be to define the strategic objectives. What do we want to achieve? The definition of these objectives must be concrete, it must leave no room for doubt. This implies establishing the actions that we must implement, those that we must correct, or which we must reinforce.

It is necessary that each objective within the sustainability plan has its own action plan to achieve it. Objectives must be specific, measurable, achievable, realistic and must have a maximum time frame for achieving them.

For each objective of the sustainability plan, we must define:

– Those responsible for each action 

– The resources needed to achieve them 

– The deadlines for the implementation of each action 

– The monitoring indicators for each objective The frequency of monitoring 

The sustainability plan must be documented and communicated and disseminated to all levels of the organisation. In this way, all employees will be able to experience sustainability as their own, which will increase their degree of commitment and participation. Likewise, it must also be communicated to the external parties involved (customers, suppliers, etc.).

C) Define the key indicators for each objective

There can be no realistic sustainability plan if it does not have defined key indicators. These will help us to analyse our degree of evolution or continuous improvement in each of the objectives we have set ourselves.

Sustainability indicators are essential to be able to measure objectives and assess the progress achieved. They will also be useful to change our strategy in the event that the one we are implementing is not giving us the desired results or to strengthen it in the opposite case. A typical indicator is the carbon footprint.

Indicators must have a starting value that determines the starting point, and the value to be achieved or target value, as well as the time frame to achieve it.

As much as possible, they should be based on measurable data, because what is not measured cannot be improved. Therefore, whenever feasible, we must quantify our impacts (amounts of waste, concentration of pollutants emitted, etc).

D) Implementation of the sustainability plan

Each team responsible for achieving the actions must be organised to implement these actions in a sustainable manner over time. Sustainability plans should be considered as one more task to be undertaken on a day-to-day basis so as not to become a simple formality to be achieved in the face of the follow-up meeting.

The sustainability plan should be realistic, it should never be considered as a formality. Companies must have a true commitment to sustainability if they want their consumers not to turn their backs on them because they consider their strategy pure marketing or opportunistic.

However, the leadership of the management must be aware that it is the one who must get involved and set an example.

E) Periodic monitoring of the progress of the sustainability plan

With a predetermined periodicity, the sustainability plan must be monitored to assess the degree of achievement of the objectives. For them, we will rely on sustainability indicators, which are the ones that will give us the data to be able to make an objective assessment.

Ideally, we should have a documented dashboard where we can visually assess the evolution of each objective based on its indicators, depending on whether or not we are deviating from the expected value. As a result of the monitoring of the sustainability plan, a report must be issued, where a photograph of the situation in which the sustainability plan is located is captured.  The necessary corrective actions will also be assessed in case there are objectives that are deviating.

F) Have software for the management of the sustainability plan

An alternative that will improve the efficiency and organisation of work is the implementation of software that helps us in the management of the sustainability plan. We can also use tools such as Excel. The important thing is that year after year we can trace the sustainability plan and all the associated documentation, and we can easily reach conclusions about how we are evolving in relation to the proposed sustainable objectives.

The implementation of the sustainability plan is the most orderly and efficient way to carry out sustainability management in the organisation and also has multiple advantages for the companies that implement it:

– It facilitates the work and implementation of actions. If we have a documented roadmap, it is easier to implement it, work collaboratively and also analyse its evolution over time.

– Contribution to the improvement of environmental conditions and reduction of impacts.

– Competitive advantage: consumers tend to choose sustainable brands based on realistic data and above all companies committed to sustainability. The best way to demonstrate our commitment is to have a realistic sustainability plan in place.

– Brand image: improves the company’s image in the eyes of third parties.

– Savings and cost reduction: every sustainability plan involves the implementation of measures to promote savings and efficiency.  Indirectly, it will mean a reduction in energy costs and consumption. Sustainability Helps Us Be Efficient.

– Ensure legal compliance, avoiding penalties. A sustainable company must comply with legislation rigorously and, through the definition of actions, tend to continuous improvement.

– Improves internal image in front of workers: employees value working in sustainable companies, and that take sustainability seriously. A sustainability action plan certifies this commitment.

– Environmental risks to the company are reduced.

1.

Ensure management commitment: for a sustainability plan to move forward successfully, the absolute commitment of the company’s management is necessary, not only in the economic aspect, implementing the necessary resources, but also in leadership.

2.

Communication and participation: it is also key that sustainability is everyone’s issue. Employees must be involved in the action plans and must be involved and updated on the sustainability actions that are being implemented, in the same way as other stakeholders (partners, customers, suppliers, etc).

3.

Carry out an initial diagnosis: it is essential to have a good understanding of our initial environmental aspects and impacts. We can hardly improve what we don’t know.

4.

Have quantitative data: measuring our environmental impacts in order to have objective data is the best way to be able to analyse the sustainability plan from an objective and realistic perspective. We must have measurements and analysis of all possible variables (discharges, waste, consumption, etc.). Only what is measured gets better.

5.

Prioritise: the sustainability plan must be realistic and pretending to do it all the first year is not. We must select from among all the areas for improvement which are the ones that may have the most urgency or will have the greatest positive impact.

6.

Create multidisciplinary teams: bringing together employees from different areas to achieve objectives is the best way to ensure success. Many times it is necessary to see things from different prisms to have a 360º vision.

7.

Analyse the entire lifecycle or supply chain. The sustainability plan needs to encompass the entire value chain. It is common for companies to set the limits of sustainability within the limits of their production process, but there are many areas that we can improve that fall outside these limits. To do this, it is best to do a life cycle analysis that will help us define priorities. The idea is to minimise impacts from the origin of our raw materials, until our products are no longer on the market: what is called from the cradle to the grave. We must encompass the entire value chain within our sustainability plan.

There are several tools and techniques that can be used to conduct a risk analysis in a company. Below are some of the most commonly used tools:

Risk Analysis Questionnaire: This is a set of standardised questions that are used to identify potential risks in a company. The questions inquire about situations that may represent a risk, and the affirmative answers establish the most representative risks.

Insurance Policy Checklist: This tool is used to identify risks that are covered by company insurance policies and those that are not. This allows the company to take steps to mitigate uncovered risks.

Process Flow Chart: This tool is used to identify risks in the company’s processes. The process is graphically represented and critical points where risks may occur are identified.

Cause-and-effect analysis (Ishikawa or herringbone): This visual technique is ideal for identifying the possible causes of a risk. The risk is graphically represented and the possible causes of the risk are identified.

Quantitative risk assessment: This technique is used to assign numerical values to identified risks and determine their likelihood and severity. This allows the company to prioritise risks and develop strategies to mitigate them.

Qualitative risk assessment: This technique is used to assess risks without assigning numerical values. It relies on the experience and judgement of experts to identify risks and determine their likelihood and severity.

Importantly, each tool and technique has its own advantages and disadvantages, and choosing the right tool will depend on the company’s needs and resources.

Restaurants are some of the businesses that have suffered the most from the pandemic, but there are many cases where they have managed to adapt to adversity. For example, the DO Restaurant in Granollers is a restaurant and cooking school focused on local and quality products. This was their strategy: When the lockdown began, the restaurant had a large amount of perishable goods. To sell the products and continue with the activity, menus adapted to the takeaway were designed and social networks were used to communicate the new services. Therefore, they adapted to the situation by applying resilience.

Business priorities in the post-pandemic era 

We can highlight the following business priorities in the wake of the COVID-19 pandemic:

Resilience. Companies need to be able to adapt to environments where the point of contact with customers may change, there may be a sudden increase or decrease in demand, or where connectivity and security must be protected so that employees can work from home.

Process automation. More than half of today’s business processes are expected to be automated by 2025. Automation allows repetitive tasks to be done by robot software and employees to focus on tasks of value to the business.

Data-driven decision-making. It is essential that decision-making processes are based on up-to-date and real data, in this way, it will be easier to deal with changes in the market, in demand or the emergence of new competitors.

We live in dynamic environments that can change at any time, so it is necessary for organisations to have structures and plans to quickly adapt to unforeseen situations, learn from them and reinvent themselves, if necessary. Resilience is the key to not only surviving, but developing and growing in changing markets in the post-COVID-19 era.

Are women better leaders in a crisis?

Gender plays an important role in a leader’s approach, but does that mean one gender is better at leading in a crisis? It can be debated whether gender plays an important role in defining the approach of a leader, with different experiences and competencies, but regardless, does that mean that one gender is fundamentally better at leading in a crisis than the other?.

In December 2020, Harvard Business Review made its position clear, publishing a research paper titled ‘Women Are Better Leaders during a Crisis’ by Jack Zenger and Joseph Folkman. The authors highlight that, based on their data, leaders should be able to pivot and learn new skills; emphasising employee development even when times are tough; showing honesty and integrity; and they are sensitive and understanding of the stress, anxiety, and frustration people feel. Their analysis showed that these are traits that women display most often. 

The research analysed 19 competencies and identified the five where there was a statistically significant difference between women and men. These areas included “take initiative,” “learning agility,” “inspire and motivate others,” “develop others,” and “build relationships.” In total, women were rated more positively in 13 of the 19 competencies that comprise overall leadership effectiveness. 

Men were rated more positively in a single competency, “technical/professional expertise,” but the difference was not statistically significant.

In 2014, Forbes published an article on “the end of the macho leader.” It explores the opinions of more than 6,500 consumers (source: KLCM 2014) and identifies female leadership as the way of the future. According to Forbes, these traits include: “leading by example,” “communicating openly and transparently,” “admitting mistakes,” “bringing out the best in others,” and most especially, during a global pandemic, “handling controversial topics calmly and confidently.” 

In their research, female leaders performed better than their male counterparts in all but one of these areas.

Expectations in a crisis 

With the world now in a digital, highly connected age, leaders’ expectations and our collective judgement of their performance are openly and publicly discussed. A single comment can quickly gain momentum online, twisting the narrative and taking on a life of its own. 

Increasing polarisation has also put leaders in positions where they can evoke highly emotional reactions or even outrage, as demonstrated during the riots at the U.S. Capitol building. Therefore, leaders in the public sphere and in all organisations must exhibit the right traits of leadership effectiveness if they are to perform well, especially since shortcomings will be magnified during a crisis.

The way a leader acts during a crisis reinforces his or her credentials as a good leader or a bad one. The first part of a crisis is often reactive in nature, requiring leaders to act quickly, make decisions, and build trust, but it can leave leaders open to criticism if they are quick to judge. 

As you move into the later stages of a crisis, the response focuses more on balancing those judgments and trade-offs with the information available. The difference between an effective leader and an ineffective leader is that a successful leader will provide direction, drive collaboration, and inspire others to do their best, which is precisely what you need to navigate a crisis successfully.

When you’re in a crisis, you typically need a managerial leadership style because time is short, information flow is high, and quick decision-making is required. Women tend to exhibit more collaborative, participatory, democratic leadership styles; while men more often use a command-and-control approach. Both approaches have their merits, but women most often blend the two and exhibit a highly effective androgynous leadership style, often described as “transformational leadership.” 

Countries with women in leadership suffered six times fewer confirmed deaths in the first wave of Covid-19 than countries with male-led governments. Women leaders such as Finland’s Sanna Marin have been praised for tackling the crisis with scientific backing and efficiency. There aren’t many women global leaders, but those who have performed well so far should be recognized.

3.2.1 Why is sustainability important in business?

We do business in an unpredictable world. Climate change, declining natural resources, and increasing demands on our energy and food supplies are disrupting business operations and supply chains in unexpected ways. 

It has never been more important for public and private organisations to comprehensively rethink the way they operate. Transforming into a successful sustainable business requires new levels of resilience and agility, rooted in responsible practices that preserve our planet.

Sustainability is a business imperative and should be fundamental to the strategy and operations of all companies. The reasons for this are both ethical and financial:

• Employees are increasingly looking to work with companies that present a mission and purpose that cares about the planet when deciding where to work. 71% of employees and job seekers say environmentally sustainable companies are more attractive.

• Consumers are willing to pay more for products from brands that are environmentally responsible. 80% of consumers indicate that sustainability is important to them. 

• Governments, investors, employees and customers are demanding new levels of corporate responsibility, including action to address climate change.

• Many of the world’s major economies have or are developing corporate disclosure requirements on environmental impact, prompting companies to reduce GHG emissions. 

• The rise of environmental, social and governance (ESG) investment criteria, as well as sustainable investing, indicate that a sustainable business is inherently more attractive to the growing number of responsible investors. Investment in ESG assets can reach 53 billion in 2025, representing more than a third of global assets. 

To safeguard our planet and our future, companies must drive decarbonization, meet environmental regulatory requirements and compliance deadlines, and improve resource consumption. Those leading the way in sustainable business practices are adopting new business models to win customers, increase brand loyalty, and discover new opportunities to reduce costs.

(1) Climate Risk Management and ESG (Environmental, Social and Governance) Reporting

The last decade recorded the greatest impacts caused by natural disasters. Organisations must consider the impact of climate change on their business operations, which is causing extreme weather events, in a scalable and repeatable way. Prepare for disruption with solutions that bring together multiple data sources, including proprietary, third-party, geospatial, weather, and IoT data, with advanced analytics. Predict and plan for critical weather events to enable sustainable development and ensure business continuity. Reduce operational costs and complexity of ESG compliance and reporting.

(2) Resilient infrastructure and intelligent operations

The global challenges of climate change and environmental degradation, security, privacy and resource management require businesses to ensure their infrastructure is designed and managed with resilience in mind. By using intelligent asset management, predictive maintenance and monitoring organisations can extend asset life, reduce downtime and maintenance costs, optimise maintenance, repair and operations (MRO* Maintenance, Repair, and Overhaul (or administratively – Maintenance, Repair, and Operations)) inventories, reduce emissions C02 and eliminate waste. This will help them meet ESG objectives profitably.

Sustainable Operations start with assets. Our assets, such as buildings, energy grids, vehicles and industrial equipment, make key contributions to the sustainability challenges we face today. But good asset management practices can be part of the solution. The desire to be a more planet-friendly organisation is also more than altruistic. It’s also good for business: “doing good by doing good.” 

You can create more sustainable operations by employing enterprise asset management. You’ll reduce waste and gain operational efficiencies in the process. Two examples:

• Manage maintenance requests at the enterprise level to create optimal, efficient routes and reduce the amount of fuel your technicians use. 
• Provide your maintenance teams with mobile tools with detailed asset information and access to critical insights to increase first-time fix rates and decrease repeat visits.

(3) Sustainable supply chains and circularity

Consumers are increasingly concerned about the traceability of the goods they buy, and supply chain leaders are looking to invest in circular economies that encourage reuse. Blockchain solutions can provide greater supply chain visibility with up-to-date inventory views and performance information that help build trust and transparency, ensuring authenticity from source to consumption while reducing waste and cost of operation. Eliminate complex challenges about emissions by establishing product provenance and minimise logistics-related emissions by optimising fulfilment and delivery with advanced AI.

For organisations pursuing a sustainability agenda, the supply chain has to be a key area of focus. Why? Because up to 85% of environmental, social, and governance-related (ESG) impacts occur in the supply chain, including more than 90% of the emissions associated with the supply of a company’s products and services. Without supply chain transformation, there can be no sustainability transformation. The good news is that organisations recognize this challenge and are taking action. In fact, 49% of companies say they have set supply chain sustainability targets and 70% say they plan to invest in circular economies that reduce waste through reuse and recycling.

More sustainable supply chains are envisaged to help to: 

• Minimise greenhouse gas (GHG) emissions. 
• Preserve resources by reducing, reusing and recycling. 
• Meet customer expectations while mitigating climate impact. 
• Addressing economic and social inequalities through ethical and responsible sourcing.

(4) Electrification, energy and emissions reduction

Enabling clean electrification at scale will require leaders to come together in new ways to rethink how electric systems work and their role in a net-zero GHG economy. Drive the transformation to decarbonization by improving grid efficiency, security, reliability, and resiliency through intelligent management of energy and utility assets. By implementing smart metering to better understand the actual use of resources, you will be able to keep critical assets and resources operating at peak efficiency, improve equipment operations, reduce costs, and optimise services through automation.

Around 70% of current global greenhouse gas emissions can be addressed through clean electrification. High-emitting sectors such as power generation and transportation are investing heavily in the process. And despite the pandemic, 2020 was a record year for green energy, with more than 80% of all new electricity capacity coming from renewable sources.

In the future, digital transformation will be key to decarbonization and to helping electricity ecosystems deliver clean energy to connected consumers safely and reliably. Digital solutions that apply AI, IoT, and blockchain will support new energy markets, while enabling more resilient physical infrastructure, more efficient and reliable utility operations, and better customer service. 

Example of Flexible Energy Best Practices:

To achieve its goal of becoming the first carbon-neutral capital by 2025, the city of Copenhagen has a good practice in energy consumption. Through a Platform, it dynamically adjusts heat and power consumption based on renewable energy supply and engages consumers to help with load balancing. The solution allows high-volume consumers (such as building owners, businesses, shopping malls and supermarkets) to choose to use less or make their own ventilation, cooling and freezing facilities available to the grid when supply is low. By taking advantage of the flexibility of buildings, relying on fossil-fueled standby power plants is avoided and thus avoids the greenhouse gas emissions associated with the plants.

(5) Sustainability: turning ambition into action for the entire company. Steps to follow

Companies must integrate sustainability into the fabric of their business to gain the information they need to operate at scale. This enables new business models and platforms to achieve sustainability goals, increase operational efficiencies, meet regulatory requirements, expose opportunities for innovation, and improve the customer experience while creating a competitive advantage.

Business sustainability has evolved from being an ethical option to becoming a strategic necessity. Companies that integrate sustainable practices into their business model not only comply with regulations, but also improve their competitiveness and reputation.

– Adopting sustainable practices can result in a significant reduction in operating costs, thanks to greater efficiency in the use of resources such as energy and materials. Additionally, minimising waste and emissions can reduce expenses associated with waste management.

– Sustainable companies recognize their role in the well-being of society and the environment. This includes not only avoiding damage, but also actively contributing to social and environmental development, creating a positive impact on the communities where they operate. Furthermore, in an increasingly sustainability-conscious market, companies that adopt responsible practices can differentiate themselves from the competition. This can translate into greater customer loyalty and additional attractiveness for investors.

– Sustainability requires a long-term vision in decision making. Companies that are committed to sustainability are better prepared to adapt to changes in the economic, social and environmental environment, ensuring their future viability.

– Ultimately, business sustainability is not only an ethical imperative, but also represents a strategic opportunity for companies seeking to prosper in a changing global environment. Organisations that adopt this approach will be better positioned to meet the challenges of the future and contribute to a more sustainable world.

SELF-ASSESSMENT TEST

SUCCESS STORIES

A success story of a company led by women that is an innovative benchmark in business sustainability is Holaluz, founded by Carlota Pi. Holaluz is one of the largest renewable energy companies in Spain, working since 2010 to lead the change in the country’s renewable energy. The company focuses on the promotion of renewable energies and sustainability, standing out for its commitment to values such as sustainability and equality.  

www.holaluz.com 

In addition to Holaluz, other women-led companies that have stood out for their commitment to business sustainability include:

KUNTU Cosmetics: Small organic, vegan and unisex cosmetics laboratory located in Madrid’s Alcarria, which has won international awards for its commitment to the preservation of the planet. 

Plant on Demand and D2 Naturaleza: Spanish companies led by women that seek a change towards a sustainable economy. 

The Milky Way: sustainable fashion brand founded by Meritxell and Natalia in Barcelona 

Hemper: sustainable backpack company made with hemp in Nepal, founded by Gloria Gubianas 

Bolsalea: specialists in sustainable packaging created by Marina Moya 

Infinit Denim: company from Barcelona founded by Montse Bayén and Nuria Nubiola 

Teterum: first Spanish sustainable tea BCorp, founded by Patricia Pólvora 

Sirem Wild: sustainable fashion brand for the whole family, founded by Miriam Barahona 

Salvados beer: beer produced in a circular way to avoid food waste, founded by Diana Vargas Go Zero Waste: app to discover zero waste spaces, created by Magda Cebrian.

These examples demonstrate the important role that women leaders are playing in promoting business sustainability in Spain and globally.

Bibliography and further references

https://www.larepublica.co/especiales/practicas-sostenibles/estos-son-los-planes-de-sostenibilidad-que-lideran-mujeres-dentro-de-grandes-empresas-3376713

https://www.imf.org/es/Blogs/Articles/2020/10/26/blog-firms-environmental-performance-in-times-of-crisis

https://mujeres.expansion.mx/opinion/2022/12/08/mujeres-protagonistas-crecimiento-empresarial-sostenible

https://www.entrepreneur.com/es/mujeres-emprendedoras/estas-8-mujeres-lideran-la-sostenibilidad-en-empresas-como/408705 

https://www.andalucialab.org/blog/sostenibilidad-estrategia-de-exito-en-tiempos-de-crisis/  

https://earthuniversity.edu.mx/empoderando-a-las-mujeres-a-traves-de-las-finanzas-sostenibles/ 

https://www.ibm.com/es-es/topics/business-sustainability 

https://wasaction.com/ 

https://www.andaluciaemprende.es/ 

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