Corporate sustainability archives

The Impact Observatory organises the event "Spain, leading impact country".

20 December 202325 October 2023 by Cristina García del Valle

Transcendent and Ontier's Impact Observatory invite Sir Ronald Cohen, the father of impact investing, to Madrid to present his book "Impact" in Spanish.

On 4 October 2023, the first edition of the event "Spain, leading country of impact: Transforming capitalism for change".. An event organised by the Impact Observatory by Transcendent and Ontier which was attended by Sir Ronald CohenHe is considered the father of the impact economy, founder of the venture capital firm Apax Partners and chairman of the Global Steering Group for Impact Investment (GSG), the world's leading initiative to drive impact investment.

A committed philanthropist, venture capitalist, private equity investor, great social innovator, as well as a leading pioneer in driving the Impact Revolution worldwide, he spoke about the keys and the opportunity for Spanish companies to have a clear sustainability strategy, to embrace impact and technology to find new markets and lines of business that generate high economic benefit while having a positive impact on people, as stated in his latest book, "The Impact Revolution". book presented at this event in Madrid in its Spanish version "Impact: Transforming capitalism for change"..

Ronald Cohen Book presentation — Book launch in Spanish "Impact: Transforming Capitalism for Change".

Before more than 300 leaders from the public and private sectors, entrepreneurs and the third sectorof the vice-president of the CEOEIñigo Fernández de Mesa, the director-general of CaixaBank AM and Chairman of SpainNABJuan Bernal, the vice-president of the Impact Observatory and president of OntierPedro Rodero, and the president of the Impact Observatory and partner of TranscendentThe Impact Revolution is guiding consumers, entrepreneurs, investors, businesses, companies, philanthropists and governments to create tangible and measurable impact. To completely transform our economic model, the risk-return-impact trinomial must become the epicentre of our decision-making.

Transcendent Team and Ronald Cohen — Sir Ronald Cohen, accompanied by the president and vice-president of the Impact Observatory, the vice-president of CEOE, the president of Spain NAB, the president of Acción Social por la Música and Transcendent's partners.

Putting impact at the heart of business strategy requires a process of transformation to a new level, where the impact of business companies incorporate the impact they generate into their strategic decisions.The impact they have on their stakeholders can be measured and managed.

As Cohen explained, "when we look at the world through a lens of impact, we discover opportunities for greater growth and profitability that would otherwise have gone unnoticed. In short, doing good can be big business".

"The Impact Revolution is guiding consumers, entrepreneurs, investors, businesses, philanthropists and governments to create tangible and measurable impact". In fact, today cn increasing number of companies that, by managing sustainability as a strategic element of managementhave on their roadmap evolve its business model towards impact. "We must transform our economic model so that instead of causing problems, we generate solutions," Cohen said.

Generating more value for money from impact

This change in model is reflected in greater recognition of companies that meet ESG criteria, drive long-term value creation and prioritise economic activities that optimise positive social and environmental impact, rather than purely short-term financial return.

As a result, the volume of impact investment has grown exponentially, mobilising over the last few years 1 billion in impact investment and 40 billion in ESG investment.

Today's capitalism, based solely on economic profit, can be changed to a capitalism that is focused on economic profit and social impact alike, redirecting large flows of capital to improve the world, explains the author and renowned entrepreneur.

"It is time for us to raise our voices, to make an impact through our decisions. From how we work, buy and invest, to how we influence our governments," said Sir Ronald Cohen.

This meeting, the second organised by the Impact Observatory this year, aims to promote the impact that companies are capable of generating based on an economic model centred on not only in minimising harm, but also in generating a positive impact.

The event closes a key year for Spain, following its start with the Impact Week in mid-June in Madrid, and as the venue for the GSG Annual Congress in Malaga in early October.

Impact Week: Impact Observatory welcomes Ronald Cohen

21 July 20237 June 2023 by Cristina García del Valle

The Impact Observatoryan initiative by Transcendent and Ontier to boost the impact and sustainability as a competitive advantage for companies, has organised the first edition of the Impact Week. A week of meetings that will take place from 12 to 14 June and will be attended by Sir Ronald Cohenfather of Impact Investment and chairman of the GSG (Global Steering Group for Impact Investment).

A meeting for leaders and representatives of the Spanish business and financial sector.

Cohen will be the protagonist of a series of private meetings with leaders and representatives of the highest level of the business and financial sector in our country, such as the CEOE, the Círculo de Empresarios or the Instituto de Empresa Familia (IEF).among others.

Cohen's presence in Spain will open up the debate on the great challenges we face and will convey to leaders and businessmen the the need to drive a new impact economy based on an economic model that optimises benefits and social and environmental impact at the same time.

The meetings will also serve to share the vision on the key role that business plays in this new stream of impact thinking, delving into the challenges and opportunities of new ESG regulation, measurement, non-financial accounting or the opportunity of sustainable and impact finance for business.

Sir Ronald CohenThe President of the world's leading global impact organisation the Global Steering Group for Impact Investment (GSG)will address the major challenges facing us today, from the devastating effects of climate change, forced migration and the refugee crisis around the world, to the global inflationary crisis and the war in Ukraine.

Ronald Cohen to address the importance of a new impact economy

Cohen will discuss all of this under the umbrella of an urgently needed new impact economy, the opportunities of ESG financing and the key role of business in generating sustainable growth. These are complex times where we need strong leaders to lead the way to change.

Sir Ronald Cohen is also Chairman of the Portland Trust, Founder of Apax partners and Bridges Fund Management, pioneering venture capital managers, advisor to heads of government in Europe, the US and Latin America and Father of impact and social investing.

The Impact ObservatoryCohen, the facilitator of these private meetings with Cohen, aims to drive impact in companies, in line with its objective of accompanying them on the path to sustainability by making impact a tool for innovation and business opportunity.

Sustainability and impact: what gets measured, gets done

21 July 202322 December 2022 by María Herrero

The words of the owner and founder of the Indian Mahindra Group, "....What gets measured gets done"(what gets measured, gets delivered) sums up the challenge and opportunity of sustainability and business impact.

This year's Annual Congress of the GSG (Global Steering Group for Impact Investment), a global organisation that drives impact investment around the world and chaired by Sir Ronald Cohen, brought together more than 300 connected people and a total of 24 top-level speakers including members of government, the European Commission, executives, owners and founders of large companies, entrepreneurs and financiers.

They all stressed that the time for sustainability and impact had come. We know the what - measuring and managing impact - and therefore the next big challenge is the how.

And the questions posed by the speakers invite us to reflect on how to manage and measure impact: are governments, through subsidies, taxes and aid, giving signals to the market about what is or is not highly profitable (gas for example), does demanding greater transparency of non-financial information require greater regulation? What financial vehicles available to small savers but also to large investors are the best to attract large capital flows to invest in companies and projects that are changing the world, when will a single impact measurement model be available, how to move from KPIs to monetary terms, audited and mandatory non-financial accounting at the same level as financial accounting be the solution?

Click to read the complete article.

EINF Sustainability Reporting: Obligation or Opportunity?

24 July 202313 October 2022 by Rocio Torres

A lot has happened since the publication of Law 11/2018 on the Non-Financial Information Statements (EINF). In less than four years, we have gone from haste, uncertainty and ignorance to planning and analysis of what companies want to say in these non-financial reports.

All of us who have been confronted for the first time with the elaboration of an EINF We have experienced that feeling of having to carry out a complex and almost unmanageable exercise.

Many areas of the company are involved and the information to be presented is not always available in our systems in the way it is required.

¿What is an NFI and how can we plan it?

When preparing an NFI (Non-Financial Information Statement) or what is also known as a sustainability report, there are certain considerations to take into account that can help us to make this exercise much easier:

1.Plan a calendar in advance

It is important to know the internal timing of the different departments of an NFIA that have to provide the information to be reported, distinguishing between quantitative and qualitative information.

2. Identify sustainability indicators

The indicators that allow us to follow up and support legal requirements, must be adapted to the reality of the company and their reporting must be accessible to the teams in charge according to the means at their disposal. It is therefore very important to carry out this identification sufficiently in advance to ensure that the information can be available in time for the signature of the report.

3. Assign responsible persons

In addition to the person who coordinates the collection of information and drafting of the report, each indicator must have a responsible person assigned to it, who will know its content in advance and the deadlines for responding. It is also necessary to assign people in charge of chapters or themes, experts in the field who can validate the contents to be presented in the report, as well as its drafting.

4. Define the structure

The structure of the document can be done in various ways, either in accordance with the sections of the Act, or based on the most relevant issues resulting from the company's materiality analysis. The material aspects indicate those aspects that can influence the development of the business or that are considered by our stakeholders to be of high priority. We should therefore focus on these aspects when structuring our report.

5. Writing "enjoyable".

Try to avoid repetition and overly technical terms. A report that is too long does not mean that it is of better quality or that the company has a higher degree of development in sustainability. It is important that the reader finds the relevant information in a clear and simple way, responding to their concerns and highlighting the company's work throughout the year.

6. Interim reviews

It is highly advisable to plan the execution of the report with sufficient time to allow for at least two rounds of review of content and form, once the manager has verified that the report complies with legal requirements. In this way, we will ensure that the opinion of the most senior managers is taken into account and that the version that reaches the board for signature is validated by all of them.

7. Sustainability is not a one-off issue

The sustainability in a company is not an issue to be dealt with at the beginning of the reporting period. It is something that is part of the management model of a business. Let's not forget that we are preparing an annual report, so it should reflect the environmental, social and governance activity of a company throughout the year.

It is important that someone within the organisation collects these actions, plans and initiatives so that when we start preparing the report, we know in advance what new content we have and how to get the relevant information.

Legislative developments in 2022

Since the publication of Law 11/2018, the European Commission has continued to make progress in the implementation of the European Green Pact and the Sustainable Finance Action PlanThis has implied modifications or extensions to the information that companies must include in their reports and to whom these new rules apply.

If in 2021 Law 11/2018 was also extended to companies with more than 250 employees (originally it applied to companies with more than 500), this year 2022 means for companies with more than 250 employees (originally it applied to companies with more than 500), this year 2022 means for companies with more than 250 employees (originally it applied to companies with more than 500). companies with more than 500 employees have to report on the eligibility and alignment of their activities with the European Taxonomy.

The Taxonomy is a list of activities considered sustainable by the European Commission. These activities have been defined for the EU's priority climate change objectives (climate change mitigation and adaptation) and the taxonomy for the remaining four environmental objectives (sustainable use of water and marine resources, circular economy, pollution prevention and ecosystem health) is expected to be available by the end of the year.

The Taxonomy report will pose a new challenge for companies as the requirements are complex, as is the way in which the financial indicators associated with the activities are to be reported.. In addition, the definitions are still very unclear in terms of interpretation, so this first exercise will not be straightforward.

More changes on the horizon for sustainability reporting EINF

Regulatory changes do not end with the Taxonomy. As part of the Sustainable Bail Action Plan, the Commission is preparing a new directive on sustainability reporting. Corporate Sustainability Reporting Directive (CSRD) which will come into force in October and will replace Law 11/2018 in Spain.

This directive will expand the information that companies must include in their sustainability reports, with an emphasis on environmental issues, human rights, supply chain, governance and social issues.

This directive shall enter into force on 1 January 2024. for companies to which the Non-Financial Reporting Directive already applies and will be progressively extended to all other companies, including those based outside the European Union in certain cases.

NFIDCs, obligation or opportunity?

These years of internal analysis of companies' sustainability and external reporting of their non-financial activity have raised awareness of the important role companies play in climate change mitigation and adaptation, the fight against social injustice and good corporate governance.

All this regulation is bringing about a transformation on how sustainability is integrated into business. Companies should take advantage of Non-Financial Reporting (soon to be Sustainability Reporting) to establish mechanisms to identify and collect sustainability-related information, manage environmental, social and governance (ESG) risks, develop policies and set targets for measurement and monitoring.

What started as a legal requirement is giving way to a great opportunity. Many companies, not just the large IBEX corporations, already see the benefits of sustainability reporting.

These reports help to organise ESG-related activity and lay the foundations for continuous improvement. In addition, they encourage reflection on the strategy and direction that companies are taking in the area of sustainability and requires them to be more rigorous in managing environmental, social and governance issues.

The 60% for companies does not specify environmental objectives.

8 September 202315 March 2022 by Cristina García del Valle

Despite progress in sustainability and the fact that all companies demonstrate their commitment to people and the planet, only 40% of the companies surveyed report concrete and measurable environmental objectives. This percentage drops to 13% for social objectives.

This is one of the main conclusions of the study "Managing ESG issues in listed companies".The report, which we have carried out at Transcendent, analyses a sample of 85 companies listed on the continuous market, including all the companies in the Ibex 35.

While all companies make their commitments clear at a high level, few yet communicate their ESG objectives.

In the case of companies listed on the Ibex 35, 60% communicate specific, measurable and quantifiable environmental objectives. However, this figure drops to 26% for the rest of the listed companies.

As Ana Ruiz, partner at Transcendent, explains, in this article of El Economista "We are detecting an unprecedented acceleration, but the speed at which companies are advancing is not the same, and the difference between Ibex 35 companies and the rest of the listed companies is very palpable"..

The study shows that companies are putting more focus on environmental aspects compared to social aspects. Only 29% of the Ibex 35 companies communicate concrete, measurable and quantifiable social objectives, which, in most cases, are linked to diversity and inclusion.

In the rest of the listed companies this figure decreases to 2%. "Today, the environmental factor is much more integrated in companies than the social aspects".says Ana Ruiz, "and highlights the difficulty companies have in defining and measuring the social contribution they make"..

Ibex ESG performance

The report shows that there is a significant difference between Ibex companies and other listed companies with respect to the use of incentives linked to ESG performance, according to the report's findings. The Economist.

More than half of the Ibex 35 companies (54%) have a variable remuneration system linked to ESG performance. Most of the remuneration is linked to the achievement of sustainability objectives, especially environmental ones, such as the reduction of Scope 1 and 2 CO2 emissions or the reduction of water consumption.

The rest of the listed companies show a still incipient incorporation of this type of incentives, with only 18% declaring to have a bonus linked to ESG performance.

"Senior management remuneration packages linked to social and environmental objectives will accelerate their implementation as part of remuneration policy, both in the short and long term, because there is a trend among all stakeholders (consumers, companies, employees, investors, regulators and public institutions) to measure and value the impact of companies".explains Ángel Pérez Agenjo, managing partner of Transcendent.

Sustainability Commissions

In barely two years, the number of companies that have incorporated governance bodies dedicated to sustainability management has increased considerably, especially in the case of Ibex 35 companies.

The great progress made by Ibex 35 companies in terms of sustainability governance has not yet materialised in the rest of the companies listed on the continuous market.

The average across all the companies in the sample shows that 53% of them have a governance body responsible for dealing with sustainability issues either exclusively or in conjunction with other issues and reporting to the Board of Directors.

According to the report, in 14% of cases this function is integrated into other existing committees or bodies, generally the Appointments and Remuneration Committee.

68% of Ibex 35 companies have a Sustainability Committee (either specific or shared with other functions), which reports directly to the Board of Directors, while in 2018 this figure was three times lower (20%).

"This evolution over the last two years is largely due to the growing demand from investors and the increase in regulation in these areas, including the reform of the CNMV's Corporate Governance Code".explains Ana Ruiz.

If you want to know more you can read this post.

Setting social and environmental targets, an unfinished business

8 September 202310 March 2022 by Ana Ruiz

The report "Managing ESG issues in listed companies". The Transcendent study, which analyses 85 companies listed on the continuous market, including all IBEX35 companies, found that only 13% has measurable social commitments.

The urgency to incorporate Environmental, Social and Governance (ESG) issues is setting the agenda of the main corporate governance bodies and has become part of their strategic priorities.

The business transformation towards sustainability implies a change of mentality, a real challenge from an organisational and operational point of view. Its transversality requires aligning all areas of the company.

To find out about the degree of progress in this transformation in leading Spanish companiesIn addition, we have decided to carry out a report, which focuses mainly on three aspects:

Developments in the structure of sustainability governance.
How the commitment to environmental and social issues translates into concrete and measurable objectives.
Linking the achievement of these sustainability objectives with the remuneration of managers.

Following our analysis, we have found that the speed at which companies are advancing is not the same, and the difference between IBEX 35 companies and the rest of the listed companies is very palpable.

We have also identified that companies have a strong focus on environmental factors, while social aspects are much less present and, when they are, they focus mainly on gender issues and the pay gap.

Data from the report *"Managing ESG issues in listed companies",* Transcendent

Materiality as a focal point for prioritisation

Beyond its commitment to the environment and society in general, a key element that influences the sustainability strategy and should drive the strategy when setting targets is materiality. These sustainability priorities will vary significantly depending on the sector, the company's strategy and also the expectations of its stakeholders.

In defining both strategy and objectives, companies can decide to reduce its impact negative and/or generate benefits for their stakeholders. They can also plan their contribution to solving existing social and environmental problems. Those objectives aimed at benefiting stakeholders or contributing to solutions are the ones that will have the greatest impact and competitive advantage for the company and, therefore, are where the company should focus.

Although, due to regulation and tacticality, companies are now focusing on setting environmental targets, it should not be forgotten that the following should not be forgotten social aspects which will undoubtedly involve the next big milestone in sustainability In some sectors, it has become a truly differentiating factor.

The great difficulty in setting social objectives lies in their measurement, which must be based on international standards, many of them still under development, such as the EU's Social Taxonomy.

Dashboards for sound decision making

For proper decision-making, directors and executive directors should be able to rely on tools that allow them to monitor and "operationalise" sustainability. within the company, providing a balance between strategic and tactical vision. A key tool is a dashboard that defines the objectives set by the company's management and makes it possible to determine the degree to which these objectives are being achieved.

Due to its nature transversal and to its marked strategic nature, sustainability requires a governance structure that supports decision-making and is accountable for its management. This is why it is the establishment of multidisciplinary governing bodies is necessary.This implies, at a strategic level, ensuring the company's ESG purpose and performance and, at a more operational level, facilitating coordination to achieve common objectives.

However, the level of reporting, the functions and the dedication (exclusive or not) of such governance bodies will largely depend on the size of the company, the sector in which it operates and what its relevant sustainability issues are.

ESG Remuneration and sustainability integration in the company

Another key element is the integrating sustainability into the company's culture. To this end, it will be important to equip both the board and the other employees with the knowledge and skills needed to capacities necessary for its implementation, which will entail the organisation of activities of training y internal communication.

Last but not least, there is the ESG performance-related remuneration that is a strategic lever which encourages the involvement of employees in decision-making and their active participation in the achievement of common goals.

According to the report, in IBEX companies, 54% of companies already have variable remuneration linked to ESG aspects. However, of the non-IBEX companies analysed, only 181 PT3T have incorporated specific remuneration packages linked to ESG performance.

ESG management in listed companies — Data from the report *"Managing ESG issues in listed companies",* Transcendent

Top management remuneration packages linked to social and environmental objectives will accelerate their implementation as part of companies' remuneration policy, both in the short and long term because there is a trend among all stakeholders (consumers, companies, employees, investors, regulators and public institutions) to measure and value the impact of companies.

Main findings of the report

In terms of sustainability, although all companies demonstrate their commitment to people and the planet, only 40% of the analysed companies communicate concrete and measurable environmental objectives.. This percentage drops to 13% for social objectives.
In terms of ESG performance-related pay, there has been notable progress in the companies in the IBEX y 54% of companies already have variable remuneration linked to ESG aspects.
The 68% of IBEX 35 companies have a Sustainability Committee (either specific or shared with other functions), which reports directly to the Board of Directors, while in 2018 this figure was three times lower (20%). This evolution over the last 2 years is largely due to the growing demand from investors and increased regulation in these areas, including the reform of the CNMV's Corporate Governance Code.

Ultimately, companies that do not incorporate the sustainability at the heart of its activity are going to compete at a disadvantage with those that do. Declarations of intent and commitments are of little use if there are no strategic plans with clear objectives and monitoring indicators to back them up.

The new business paradigm requires courageous and bold leadership that knows how to manage this challenge as an immense opportunity, challenging existing models and evolving their businesses from sustainability to impact generation.

What is materiality and how does it affect companies?

20 June 202218 February 2022 by Francesca Mondello

Now that sustainability has become an undisputed priority and more and more companies are defining their strategies to manage it, we hear more and more often about sustainability management. materiality.

But what is materiality, what is its link to sustainability strategies, and why is it so much talked about?

If you are not yet familiar with this term, do not know exactly what it is used for and how a materiality analysis is carried out, this article is for you.

Let's start at the beginning, i.e. by defining what materiality is.

When we talk about materiality we refer to all the environmental, social and governance (ESG) aspects which have a substantial impactpositive or negative, on the company's profitability and in their stakeholders.

Materiality should be the foundation of any rigorous sustainability strategy and therefore material issues are those that merit proper management and, where applicable, reporting.

Although depending on its scope, the analysis itself has a certain level of complexity, we should not view materiality as an exercise for the few, relevant only for multinationals, for a particular sector or for companies that are obliged to publish the non-financial information statement.

Materiality is a strategic tool that facilitates decision-making. Therefore, any company that wants to remain competitive and is interested in creating value for society, regardless of its size or the sector in which it operates, should carry out a materiality analysis on a regular basis.

What are the main benefits of materiality analysis?

Now that we know that materiality is a key concept for both reporting and sustainability management, the next step is to understand the benefits of conducting such an analysis.

The main ones can be summarised in three points:

1.Prioritising and focusing the strategy

Materiality provides valuable information that allows identify issues for follow-up, minimise risks and refocus strategy prioritising the major impact issues in the business and that are more relevant to stakeholders. This helps to maximise resource allocation and minimise efforts.

2.Anticipating trends and improving competitiveness

Through analysis, the company can spotting emerging trends and best practice in the sector, so materiality is an important critical resource for improving competitiveness. Material issues, properly managed, are the levers for creating long-term value for society and should therefore influence decisions about the supply of products and services and, in addition, serve as a guide in defining a differential value proposition with respect to the competition.

3. Promoting transparency and dialogue with stakeholders

Materiality analysis provides an opportunity to establish a dialogue with key stakeholders, to identify the issues that are of most concern to them and for which the company will be held accountable. Materiality therefore contributes to improving stakeholder relations and transparency of the company.

What are the most critical aspects of the analysis?

The most critical aspect of the analysis is undoubtedly the definition of its scope. Materiality is a relative concept that is highly context-specific and, in the case of large companies and multinationals, material issues can vary significantly from country to country. It may even be difficult to identify a single materiality matrix, even if there are many commonalities between subsidiaries.

Secondly, stakeholder engagement requires time and resources. Engaging stakeholders - especially external stakeholders - can seem like a daunting task, so many companies are tempted to leave them to one side and create a materiality matrix simply to comply with reporting obligations.

Undoubtedly, the richness that the participation of key stakeholders adds to the quality of the analysis more than compensates for the effort.

Thirdly, the company's management must be involved. Once the strategic and cross-cutting nature of materiality is recognised, the responsibility for the analysis cannot rest solely with the Sustainability Department, but requires the involvement of all areas of the company and must be embedded in the commitment, vision and validation of management.

Fourth, prioritisation of material issues is key. Companies that have conducted several materiality assessments know that material issues grow as new priorities, regulations or trends emerge.

For both management and reporting on the impact generated to be easily understood, and thus add value to stakeholders, prioritisation of material issues plays a key role.

Finally, materiality is a variable concept. Materiality is a time-varying concept, so while there is no commonly accepted standard for how often the analysis should be performed, it is worthwhile to carry it out on a regular basis.

From direct experience we know that there is no single way to carry out a materiality analysis, but if you found this interesting and would like to know more about the methodology we have developed to carry out a materiality assessment, please do not hesitate to contact us at info@transcendent.es or consult our blog.

Business purpose drives value generation

17 October 20222 February 2022 by Cristina García del Valle

The purpose is a strategic lever The value creation potential and profitability is well established. Companies with a defined and integrated purpose, whose approach is to focus on improving their financial performance and the common good, achieve a better performancea highest market valuation and create more shareholder value compared to the rest.

This need to incorporate ESG (social, environmental and governance) aspects is a trend that has no way back and will force companies to transform themselves by making impact a management tool.

"Purpose increasingly demands the professionalisation of business leaders".

A new committed leadership

The activation of purpose and the management of social, environmental and governance impacts is becoming an element that demands a further professionalisation to business leaders.

To address this issue, José Antonio LabarraCEO of ROADISa leading company in the development, operation and management of transport infrastructure assets, recently met with Ángel Pérez AgenjoTranscendent's managing partner, at a meeting organised by APD on the Business Purpose.

Purpose as a management tool and a lever for value creation

The five benefits of purpose in business

There are a number of competitive advantages that differentiate a company that works and activates the Purpose from others. These include:

Increases profitability and market value. Purposeful companies improve their market value faster than others. However, purpose has a positive impact that goes far beyond a company's bottom line as it generates many other benefits as well.
Improves reputation and legitimacy to operate: By publicly stating its purpose, a company demonstrates its commitment and the benefits it brings to its stakeholders and society as a whole, and this clearly enhances its reputation. Companies that define and activate their purpose therefore significantly reduce the risk of corporate scandal eroding their licence to operate.
It allows you to manage and retain talent: Business purpose is a differentiating element that can be beneficial for all three aspects since, from a Human Resources management point of view, it constitutes a real strategy for the management of human resources. employer branding.
Customer loyalty: It emphasises the unique and distinctive contribution that the company makes to the big issues we face. For that reason, it has the potential to generate stronger relationships with its customers, who tend to be more attracted to companies that convey authenticity and that they consider to be worthy of their trust. when a company sets and activates its Purpose it arouses interest and attraction from its customers.
Investor interest is increasing: Investors are increasingly integrating ESG criteria into their decisions and are interested in the social and environmental performance of companies.

In the case of ROADIS, its Purpose is in the value creation in the communities in which it operates through profitable investments in major infrastructure projects. To do this, it relies on 4 main attributes: ethics, prosperity, innovation and security".

The transformation process towards sustainability

In 2019, the company headed by Labarra decided to take a step forward and adopt the sustainability as part of its business model and, above all, as a lever for value creation in order to become an active part of the transition towards a more responsible and sustainable economic model.

According to its CEO "we defined a Cross-cutting Master Sustainability Plan to all areas of the company by offering a framework for action that would allow us to have a solid position in the business context, as well as to become an active part of the transition to a more responsible and sustainable economic model".

For his part, Pérez Agenjo emphasises that "the market rewards the purpose-driven companies and punishes those that do not. That is already part of the new business paradigm. And therefore, for the 43% of the companies sustainability policies and management of ESG parameters have become a urgent issue".

Measuring impact, a key tool to avoid the "Impactwashing

Pérez Agenjo assures that establish an impact measurement system In the company, setting indicators and putting them at the heart of corporate strategy is one of the first steps to combat the already well-known Impactwashing.

For the CEO of ROADIS quantifying and measuring impacts is essential to understand and analyse the impact generated on both society and the environment. Quantification is not easy, but it is necessary because what cannot be measured cannot be improved.

"Quantifying and measuring impacts is essential to understand and analyse the impact generated".

To this end, they have set up a system to measure the company's impact, and they have set indicators with the aim of putting them at the heart of corporate strategy.

"At ROADIS we have developed a methodology for measuring economic, social and environmental impact of our assets in order to identify the medium and long-term effects of our assets on users, employees, communities, the environment, suppliers, institutions and any other relevant stakeholders in the environments in which we operate. It is a valuable tool we use to identify and quantify impacts from a broader perspective. A methodology based on the best practices of the Impact Management Project (IMP)," Labarra concludes.

Impact investment consolidates in Spain with Spain NAB

28 June 202225 January 2022 by Cristina García del Valle

After two and a half years of work, SpainNAB, the Impact Investment Advisory Board, has been formed as an Association with the incorporation of 28 organisations and independents, including the sustainability and business impact consultancy Transcendent..

SpainNABThe Advisory Council for Impact Investment in Spain has been formed as an Association with the incorporation of 28 independent organisations and individuals to continue to drive the impact investment market in our country.

Among the organisations that have joined are Transcendentrepresented by Ana Ruizsaid the consultancy's partner. "We are very happy to become part of SpainNAB to build an ecosystem committed to impact investment in our country along with 28 other companies, organisations and leaders in the Impact Economy. At Transcendent we want to contribute to promoting and consolidating an economy that generates positive social and environmental impact", says Ana Ruiz.

These additions join a strategic project for the country that emerged in June 2019 with the accession of Spain to the Global Steering Group for Impact Investment (GSG). Thus, in the current context of recovery and transition towards a fairer, more sustainable and equitable economy,

SpainNAB is consolidating its position as the leading organisation in Spain for the promotion of impact investment, a necessary tool to achieve a capitalism in which positive and measurable social and environmental impact is integrated into all economic and financial decisions.

Important developments since 2019

SpainNAB was born as a 16-person advisory board in June 2019 with the accession of Spain to the GSG. This council is today constituted as the SpainNAB Association and incorporates 12 new individuals and organisations, bringing the total to 28.

The GSG is an initiative that emerged in 2013 in the framework of the British presidency of the G8. It is chaired by the father of impact investing, Sir Ronald Cohenis the main global platform to promote this type of investment, of which 34 countries and the European Union are already members.

The achievements of more than two years of work can be measured in figures. Spain's accession to the GSG was a catalyst for the growth of impact investment in our country, reaching a figure of 2,378 million euros of managed capital in 2020, which represents a growth of 26% compared to the previous year.

The market has not only grown in numbers, but also in the number and nature of actors. An ambitious Action Plan, networking and the generation of cutting-edge knowledge have been fundamental parts of SpainNAB's success to date.

A new era for impact investment

The formation of SpainNAB comes at a pivotal moment for impact investing. In the midst of an unprecedented climate and social crisis, the G7 once again tasked the GSG with coordinating a working group, the Impact Taskforce, to draw up a roadmap to accelerate the volume and effectiveness of private capital seeking to have a positive social and environmental impact.

SpainNAB has participated in the work of this group and has been recognised with the inclusion of two pioneer Spanish cases in the recommendations report of the G7.

"We must take advantage of the momentum The current situation is a great opportunity to take impact investment to the next level, hand in hand with the entire ecosystem and with a clear role for the public sector as a catalyst for the market, as has happened in European countries such as France, Portugal, Italy and Germany," explains Juan Bernal, president of SpainNAB.

The 23 Spanish companies that lead the world

28 June 20229 December 2021 by María Herrero

Whether we like it or not, our company influences and contributes positively (or negatively) to a better world. Whether we like it or not, we may be singled out to join a club that we have not chosen to join for the justified or unjustified reason that our company is considered a leader and/or exemplary for others for various reasons, based on turnover or number of employees, perhaps because of the sector in which we operate or the community we serve, our type of product or customer base or perhaps because of the important influence of our brand...

However we do it, we companies leave our mark on the world. But which ones leave a footprint for a better world? And what is or how do we define a better world?

A better world is defined by the United Nations in a perhaps simplistic but undoubtedly accurate way, as one in which economic growth is sustainable, responsible and respectful of the planet, contributing to the improvement of people's lives and leaving no one behind.

This objective is set out in the well-known 17 Sustainable Development Goals contained in the United Nations 2030 Agenda, which came into being in 2015. At that time there were 15 years left, which were long for some and short for many, and which today, 9 years down the line, are overwhelmingly short for the great challenges of humanity reflected every day in the news that reach us: from a child dying on the beaches of our coasts, men and women freezing cold on the border of Poland and Belarus, women without the right to work, girls who cannot go to school or parents with their child on their shoulders crossing rivers where they risk their lives in the hope of a better future...

Only business can lead change

Suddenly, and exacerbated by the coronavirus pandemic, surveys show that business is perceived as the leader of change and therefore the hope for achieving these goals.

Neither governments nor NGOs have the resources to invest the 90 billion euros needed to achieve them. And let's be honest, it is not these that have the biggest impact on people and the planet. It is business.

Just as Covid arrived, in 2018 the WBA was created, a non-profit organisation inspired by the values of the United Nations. If society's hope lies in business, it is business that should become the engine of the change and transformation we need. And something had to be done. If they are the engine, where is the fuel to start it up and drive it to arrive in good shape and on time?

The World Benchmarking Alliance (WBA): The Race to the Top

This fuel is the WBA. The WBA is a foundation born in the Netherlands (a country par excellence pioneer and benchmark in sustainability and impact) with the support of the Dutch government and 20 global entities spread around the world willing and united around a mission: to drive the private sector's race towards the SDGs.

The ranking of the 2000 companies that lead the world

The first milestone was not an easy one: choosing the 2000 most influential companies in the world capable of contributing the most to the world's development. Millennium Development Goals, send a letter to their CEOs informing them that they were going to be part of a World Ranking that the whole world, consumers, investors, governments, ordinary citizens, would know the results through a big campaign in the media and social networks worldwide and ask for their collaboration in the process.

The second milestone, the result of an in-depth and rigorous study, was to identify the 7 indices or benchmarks, which respond to the 7 transformational elements that our system needs to be responsible and sustainable. The social transformation (human rights and gender) that affects the 2000 companies, and six other elements or transformations where companies can be rated in 1 or several, depending on the materiality of the impact generated by their business. These are: nature and biodiversity; urban or smart cities; agriculture and nutrition; energy and decarbonisation; digital inclusion and finance.

A third milestone remained, which was not going to be easier because it was the last one. Generating a roadmap that would lead the way by offering tools and support to companies to take action. The journey? Transforming and adjusting their business model to generate measurable and manageable economic, social and environmental value that contributes to one or more development objectives. In short, contributing with innovative solutions so that the generation of goods and services by companies would have a deeper meaning than just producing, selling and consuming them.

Benchmarking for a Better World

You don't choose to be a WBA company

These 2,000 companies were not asked if they wanted to be part of this ranking. So, to motivate them to collaborate and get involved, the WBA provided them with its methodologies, tools and roadmaps to achieve two goals: the 2030 Agenda and a carbon neutral economy. The incentive? To lead the top positions of the World Ranking and be perceived as the best company for a better world.

The 23 Spanish companies that lead the world

Well, of these 2000 companies, 23 are Spanish. The list is made up of Acciona, ACS, CaixaBank, Telefónica, Banco Santander, BBVA, El Corte Inglés, Mercadona, Inditex, Cepsa, Iberdrola, Nueva Pescanova, Indra, Naturgy, Ebro Foods, FCC, Ferrovial, Grupo Logística, Meliá, Renfe, Repsol, Siemens Gamesa and Urbaser.

The 23 companies that lead the world — *The 23 Spanish companies in the WBA ranking*

And all of a sudden, these 23 Spanish companies of different sizes, sectors and market capitalisation.... are now part of the club of companies that lead the world. And they lead the world because the WBA, today constituted as an alliance of more than 250 entities worldwide, has singled them out as the most influential, not to tell them what to do, but to accompany them along the way, offering light and being a guide on the exciting journey of achieving and contributing decisively to the Millennium Goals by creating a world that leaves no one behind.

2023: Publication date of the first World Rankings

The publication of the indices and the transformation effort of the 2000 companies will be made public in the second half of 2023. We have only months to go. Governments, suppliers, investors, employees, consumers and ordinary citizens will have the opportunity to see the World Ranking of the most sustainable companies committed to the common good.

To raise awareness of the WBA project, the Impact Forum - a benchmark event on impact in Spain led by the Foundation Ship2B - organised a session where together with Victoria Márquez-Mees, the WBA, a leading member of the WBA Board of Trustees, unveils the opportunity that the WBA represents for the 23 Spanish companies selected for the Ranking.

Our wish from Transcendent is that Spanish companies lead the first positions of the Ranking. Some companies such as Telefónica have achieved the first position in the Digital Inclusion ranking. As allies and partners of the WBA, we want the 23 Spanish companies to lead the WBA Ranking, thus demonstrating their commitment to sustainability and the SDGs and that many other companies, seeing their example, effort and success, follow their legacy.

Whether we like it or not, our company influences and contributes in a positive way to a better world... this is our purpose and our raison d'être at Transcendent. Help companies to transcend and leave their mark on the society they serve and why not? To lead the World Ranking of the companies most committed to people and the planet.