72% of listed companies set measurable and quantifiable environmental objectives

Madrid, 16 November 2022.- The setting of environmental objectives is still more integrated into companies than social objectives. While 72% of the companies analyzed set environmental objectives, only 38% do so in social matters. Although the gap is still significant, there has been a change in trend compared to 2020 in which only 13% of companies set goals in the social sphere.  

This is one of the main findings of the study “The evolution of environmental and social objectives in listed companies”, which analyzes a sample of 85 companies that are listed in the continuous market, including all the companies in the IBEX 35, carried out by the strategic consultancy firm for Sustainability and Business Impact Transcendent.

The conclusions confirm an acceleration in the pace of incorporation of social and environmental objectives in companies. Of the total number of companies analyzed, 72% establish and publish environmental objectives. However, there is a different pace in setting these objectives among the companies that make up the IBEX 35 compared to the rest of the listed companies.

In the environmental field, while 91% in the IBEX 35 set concrete and measurable objectives, only 58% of the rest of the listed companies do so.

Decarbonization and the circular economy, the main goals

Among the IBEX 35 companies, 91% have measurable and quantifiable environmental objectives, 52% more than the previous year.  

Among the IBEX 35 companies that quantify their environmental commitments, all of them set climate change objectives related to the reduction of greenhouse gas emissions. Specifically, half of the IBEX 35 companies have committed to being Net Zero before 2050 and 17% establish carbon neutrality before that date.

“Reducing the carbon footprint of companies is already a priority and will continue to be so in the coming years. In this sense, companies must take their commitment much further, seeking to become Net Zero. To this end, the management of its scope 3 will become a critical element, as well as other lines of action that are not yet so present in the communicated objectives, such as the circular economy,” says Ana Ruiz, partner at Transcendent and director of this study.

Almost half of the IBEX 35 companies report circular economy objectives, mainly linked to the reduction of waste sent to storage and recycling, which shows that all the opportunities offered by this area are not being taken full advantage of.

To a lesser extent, they establish objectives for the protection of natural capital, focused mainly on reforestation and the minimization of water consumption. Only 37% set objectives to protect the natural habitat and if they do, they are usually aimed at reforestation and minimization of water consumption.

The gap is reduced with more social commitments

During the 2021 financial year, great progress was made in setting social objectives, although it continues to occupy a secondary place for companies compared to the environmental field. 38% of the companies analyzed have started setting social objectives in 2021, compared to 13% in 2020.

Among the 35 in the IBEX, 54% of companies reported specific social objectives in 2021, compared to 29% in 2020, registering an increase of 86% in just one year.  

In addition, there are different speeds in its integration into the IBEX 35 compared to other listed companies where only 28% have set objectives in this area compared to 2% in the previous year.

“As of today, the environmental factor is still much more integrated into companies compared to social aspects, but we have detected a very significant advance in the last year and we hope that this trend will be consolidated in the short and medium term with the arrival of the entry into force of the European Social Taxonomy, which will provide standardization, rigor and common metrics,” explains Ana Ruiz.

‍All companies with social objectives set objectives related to their employees

All IBEX 35 companies that have set social objectives have established commitments aimed at their employees. This dimension is mainly focused on incorporating more women into managerial positions.  

Six out of 10 IBEX companies have established some type of objective aimed at involving their suppliers in complying with ESG criteria.  

However, there is still a lot of room left in the customer arena. Despite the fact that all companies express commitments to customer satisfaction, only 26% quantify objectives in this regard.  

A somewhat lukewarm percentage has been detected when it comes to setting objectives to reduce negative impacts in the local context or promote the economy in which the company operates.

“For companies, the next major challenge will be to go beyond the active management of ESG aspects and begin to measure and manage the impact they generate from their business. This requires, first, analyzing the social and environmental contribution of companies in their environment and in their main interest groups and, second, prioritizing those decisions that maximize positive impact and the creation of long-term value. It is precisely by maximizing impact that companies have the opportunity to differentiate themselves and to achieve a competitive advantage over the rest,” explains Ángel Pérez Agenjo, managing partner of Transcendent.

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