Compliance with just 15% of SDGs is currently on track to be achieved, 48% have a moderate or serious risk of non-compliance, and 37% are clearly in decline. This landscape highlights the need for systemic change that transcends short-term solutions and addresses the fundamental roots of global issues. These are some of the main findings of the seventh report entitled Informe sobre la Contribución de las Empresas Españolas a los ODS: Las empresas ante el reto del cambio sistémico (Report on the contribution of Spanish enterprises to SDGs: Business response to the challenge of systemic change) by the Esade Chair in Leadership and Sustainability, in conjunction with the Social Observatory of ”la Caixa” Foundation.

“Systemic change is urgently required. This means not only overhauling current practices, but also completely rethinking our economic and social systems to ensure long-term sustainability,” explained Àngel Castiñeira, director of the Esade Chair in Leadership and Sustainability. “The role of businesses is crucial not only in mitigating their environmental impact, but as drivers of positive, lasting change. A call to action is needed in order for all sectors of society to contribute to a transformation that cannot be put off any longer,” declared Castiñeira.

Growing focus on the risks of climate change

The seventh report on the Contribution of Spanish Enterprises to Sustainable Development Goals (SDGs) proposes a more integrated, holistic approach which is reflected in the increasing enmeshing of companies’ finance and sustainability departments. The report emphasizes that this trend could ensure a more robust integration of sustainable practices into long-term corporate strategies. The study examined this situation in a significant group of Ibex35 companies, and revealed the challenges they face in the present-day scenario characterized by systemic crisis and growing sustainability risks that affect their strategies and business models.

According to this study, the move by companies towards sustainability is accelerating due to the pressure of emerging systemic risks and new regulations. The focus on the risks of climate change and other systemic disruptions is increasing because of their inextricable links with companies’ financial materiality. Some companies are installing their sustainability committees in the finance department, thus giving non-financial data an unprecedented weight in their corporate strategy.

Exacerbation of climate change, biodiversity and social equality issues

As in previous years, the closing chapter of the report by the Esade Chair of Leadership and Sustainability and the Social Observatory of ”la Caixa” Foundation measures the contribution of 105 Spanish listed companies to the 2030 Agenda. The midway point of the period for complying with the Sustainable Development Goals (SDG) on the 2030 Agenda is approaching but, although Spanish companies are increasingly committed to sustainability, worldwide progress is hampered by global issues related to climate, inequality and natural resources. The report reveals a worrying paradox: although the percentage of companies reporting their sustainability practices has climbed to 92% in 2022-2023, global issues in the realms of climate change, biodiversity and social equity are increasingly exacerbated.

The SDGs that companies mention most include SDG 13 (Climate Action), SDG 8 (Decent Work and Economic Growth), and SDG 12 (Responsible Consumption and Production). However, critical SDGs such as SDG 14 (Life Below Water), SDG 1 (No Poverty) and SDG 2 (Zero Hunger) continue to be insufficiently addressed.

Room for improvement regarding wage gaps and environmental impact

According to the People chapter, as regards gender equality, the presence of women in management and boards of directors has increased. The report reveals that 33% of women hold board positions, 27% hold management positions, and 38% of staff in general. However, parity in the workforce has remained unchanged at around 12% since 2017 and the gross gender pay gap stands at 17%.

As for Governance, 24% of companies include environmental criteria and 33%, social criteria, in their corporate missions, while just one in four companies has committees that deal exclusively with sustainability-related issues.

Finally, the Planet chapter outlines that 36% of companies declare themselves to be committed to Science-Based Goals (SBT). Only 67% report scope 3 emissions and only 18% list issues related to the materiality of biodiversity amongst their main concerns.