Companies bolster their commitment to the S in ESG against a backdrop of uncertainty

In a landscape characterized by geopolitical tension, doubts about multilateral agreements, backpedaling on the climate change agenda and the impact of technological transformation, the social dimension of ESG raises its head as a strategic priority for many businesses. This became clear during the talk 'Strategic leadership of the S in ESG in times of uncertainty', held on the Esade Madrid campus by Esade and the SERES Foundation.

During this event, speakers discussed how their businesses are responding to present-day uncertainty whilst remaining committed to social cohesion, sustainability and purposeful leadership.

Genuine strategic leadership in turbulent times

The session began with Ana Sainz, director general of the SERES Foundation, who emphasized that “the SERES Foundation regards sustainability and its social dimension not as an obligation, but as a value creator that is crucial for ensuring robust businesses and a stronger society.” She added that, in times of uncertainty, “we must focus on what really matters: knowing why we do what we do, what change we want to achieve and what our companies can do by listening to our stakeholders and addressing their needs. Despite the uncertainty surrounding regulations and geopolitics, we can see that companies uphold and pursue their social commitment because it makes strategic sense.”

Ignasi Carreras, professor and the director of the Management Training Programs for NGOs at the Esade Institute of Social Innovation, explained that today’s scenario is “a crisis of prolonged, complex uncertainty more like the crisis of 2008 than the COVID crisis.” He pointed out that “companies with a robust track record in social responsibility and a community of real leadership know how to navigate the turbulence with a greater sense of direction. Leading means taking good decisions boldly. And now is the time to be bold.”

When the “S” in ESG means action

The speakers outlined several projects undertaken by their companies to fully integrate the social considerations of ESG into their strategies.

Felipe Campos, CEO of Aigües de Barcelona (Agbar Group) and director of Social Action at Agbar, pointed out that although present-day social polarization is a challenge, “it’s also an opportunity for us to demonstrate our responsibility, get involved in the response to social challenges, work in partnerships and achieve the much-needed trust of citizens.” He highlighted the OLA program, developed in conjunction with the Red Cross, as an impactful example, “In more than five years, we have run more than 26 editions nationwide with an impact on some 850 people, 93% of whom have subsequently found jobs. This approach, based on covering basic needs, collaborating with local councils and delivering personalized advice, not only has a positive impact on the community but also boosts our competitive edge and ability to tackle future challenges.”

María Emilia Adán, dean of the CNRPMBM (Spain’s Association of Mercantile, Land and Property Registrars), insisted that “social leadership shouldn’t go away in times of crisis. Actions must be based on conviction, not obligation, which is why the association of registrars always looks ahead and thinks about how we can advance and improve equality, diversity, intergenerational dialogue and, in general, respect for the rights and freedoms of all citizens.” She presented two initiatives: the Emergency Registry Platform, which provides aid for disasters such as the volcano eruption on La Palma and the DANA floods in Valencia, and JUBILARE, which promotes the talent of seniors after retirement. She also called for “voluntary, albeit incentivized, compliance with sustainability obligations.”

Almudena Román, director general of New Business at ING Spain and Portugal, was clear that “social trends are not set in stone, they fluctuate. But what never changes at ING are values. The interest in practices related to companies’ commitment to environmental and social strategies is snowballing and difficult to stop. We feel that what matters is each company’s real commitment – the values in their DNA.” She underlined ING’s commitment to sustainability as a driving force for innovation and mentioned FARO, a project that received an award from the SERES Foundation in 2022. “FARO is not so much a project as an alliance that helps improve people’s financial health in conjunction with the Nantik Lum Foundation and a public-sector partner, i.e. city councils, the entities most familiar with the vulnerable groups in cities.” This project now helps more people in more cities including Madrid, Valencia and León, and plans are afoot to implement it in yet more cities.

Looking to the future: social considerations as a cornerstone of competitiveness

During the final part of the meeting, the speakers agreed that the “S” in ESG must not be sidelined, but must be consolidated as column of corporate leadership.

“Acting on the basis of conviction, not obligation” was one of the key ideas, and likewise the need to maintain a steady course, even in complicated times. “Commitment to social considerations is no longer optional. It’s an essential part of competitiveness, innovation and social cohesion,” they concluded.