DECISIVE MONTHS FOR THE COMPANY'S JOURNEY TO IMPACT

September has arrived. The strangest September that almost all of us remember. But September means the beginning for most of us. In the midst of a return to routine, September brings us beginnings. What beginnings await us this year? Are there going to be major disruptions in the business world in this different fall? How do we prepare?

These are some of the inertias that we are already detecting and that we believe will be consolidated in the coming months:

1. Impact investment will better withstand the storm

From a financial point of view, impact investment funds are showing better performance and greater resilience than other funds. This reality reinforces the importance of this type of investment, becoming a lever for the transformation of the entire business sector.

2. The consumer is changing their consumption preferences

And that change is accelerating with the pandemic. Although there will continue to be major inconsistencies in consumer buying habits and the duality - convenience/promptness versus sustainability/impact will remain, the tendency to demand more sustainable products and services is consolidating strongly.

3. The European Roadmap to a Sustainable Economy

The European Green Deal, together with a Just Transition mechanism that will allocate 100 billion euros during the period 2021-2027 to mitigate the socio-economic impact of the transition to a low-carbon economy, will promote the transformation of the company.

4. The company, a protagonist in the recovery

The idea that the company plays a leading role in the recovery is gaining more and more strength. Faced with unprecedented economic uncertainty, many companies are becoming the benchmark for their employees, suppliers, customers, and other interest groups.

5. The professionalization of the purpose

Only 7% of Fortune 500 CEOs believe that their companies should “focus primarily on achieving benefits and not be distracted by social objectives. And although capitalism has managed to catalyze enormous progress, it has encountered great difficulties in dealing with highly complex issues such as climate change or inequality”, according to McKinsey and his study “Purpose: Shifting from why to how”.

6. Income generation in the short term vs long term

The economic impact of COVID on many sectors of activity will require that the corporate social impact actions that are implemented be more focused on generating income immediately in the short term, minimizing costs. This means avoiding traditional CSR activities, which in many cases acts as a cost center for actions with a direct impact on improving the income statement.

The world we are going to will undoubtedly be different from the one known until now. Company managers have the opportunity to rethink and reimagine their purpose and the role that their companies will play in the future. They can continue with their traditional lines or explore new business models that are more adapted to the new habits and preferences of consumers, which will undoubtedly have changed and that will demand that purpose and social impact be at the center of their activity.

All of this will promote the transformation of the company towards corporate social impact.

Who will succeed?

Everything suggests that companies that manage to incorporate sustainability and purpose at a strategic level in the organization will be successful, becoming a competitive advantage.

Facing short-termism, rigor and measurement

During the pandemic, many companies have launched actions to support their stakeholders based on their needs. Now it is time to put in place structure and rigor so that these efforts do not remain a short-term and contingent exercise and to provide the business sector with greater resilience in the long term.

It is also time to value their contribution to society by measuring the impact generated and acquiring tangible commitments in the medium and long term to society and the environment.

In any case, we clearly see that what is important is consistency and coherence. This is no time for Green Washing. It's a time for values and purpose. With capital letters. From the inside. From above. In all processes. In every department. Across the entire value chain. Implemented professionally and from within the organization. To resist. To move forward. To improve. Find out more at our blog!