Companies bolster their responsible leadership in response to uncertainty and new ESG challenges
At a time of profound geopolitical, economic, technological and social change, companies face the stumbling block of affirming their commitment to sustainability against a backdrop of uncertainty. This increasingly challenging scenario affects how companies design and apply their ESG strategy, requiring them to respond quickly and reshape their priorities.
This landscape was the framework for the latest session in the Esade – SERES Foundation lecture series entitled ‘ESG en transición: contexto, cambio e incertidumbre’ (‘Shifting ESG: context, change and uncertainty’) which addressed the corporate response to these challenges. Representatives from Mahou San Miguel, PwC and Telefónica shared their thoughts about how companies are moving away from regulatory compliance towards a form of responsible leadership capable of making sustainability an integral part of corporate strategy, culture and purpose.
Purposeful leadership in times of change
Ana Sainz, general director of the SERES Foundation, opened the conference by reflecting upon today’s landscape of uncertainty and the direct impact of geopolitical, social and technological changes upon companies’ commitment to sustainability and society. “Europe’s regulatory framework is evolving rapidly, creating new challenges for companies. In these circumstances, we mustn’t forget that the transformation of sustainability into a veritable driver of competitiveness and social impact is a huge opportunity. Today, purposeful leadership means not merely compliance, but integrating ESG into corporate strategy and culture and delivering tangible value for people, business and society.”
Ignasi Carreras, professor and director of NGO Management Training Programs at the Esade Institute for Social Innovation, contextualized the conference by pointing out that “these are unstable times as regards geostrategic, political, economic, social and technological matters. A challenging, uncertain and complex panorama that calls for companies to have a clear, robust vision of their contribution to social impact, a commitment at all levels, and the ability to demonstrate results.” He also outlined some of today’s major challenges: the decline of the welfare state and multilateral cooperation, the increase in political polarization, the growth of migratory movements and the advance of artificial intelligence “which creates huge opportunities for efficiency and social solutions, but also poses ethical risks depending on how it is applied.”
From regulation to action: sustainability as a driving force for innovation
During the conference, the speakers agreed that today’s uncertain scenario should not hamper but rather stimulate and accelerate companies’ commitment to sustainability. The companies that incorporate ESG criteria into their business strategies and in-house culture will be more future-proofed regarding the challenges of a complex global landscape whilst creating long-term value and trust.
Marta Colomina, general director of the PwC Foundation, emphasized that “sustainability isn’t a question of passing fads or more or less conducive circumstances, nor is it simply something that companies need. No, it’s an opportunity to differentiate oneself, connect with customers, and foster innovation in products and processes.”
Beatriz Herrera, director of Strategic Planning, Corporate Reputation and Sustainability at Mahou San Miguel, explained that “ESG resilience can’t be improvised: it has to be based on strategy and purpose, be demonstrated in action, and validated by means of its positive impact. At Mahou San Miguel we’re ready to spearhead this transition. This is why we’ve launched “Sharing the Future”, a framework to ready us for a more regulated, technological and auditable ESG, with clearcut commitments that help us lead this shift with actions.”
As Elena Valderrábano, global director of Sustainability (ESG) at Telefónica, said “In times of uncertainty, ESG is a core reference. It’s essential to bolster risk management, foster a culture of sustainability and not waive from our commitments. ESG is here to stay, as a driving force for efficiency, resilience and value. And responsible digitalization can help us consolidate it.”
The ESG shift: between complexity and opportunity
Discussions revealed that corporate sustainability is undergoing a transition. Companies are no longer required to simply comply with increasingly complex regulations; they also face the challenge of reworking their business models to bring them into line with social and environmental expectations.
In this respect, the participants agreed that the coming decade will be decisive for consolidating a mature, measurable form of sustainability in keeping with the business purpose. Alliances, innovation and responsible digitalization will play a key role in ensuring that ESG commitments translate into real results on the way.
Since 2011, the Esade - SERES Foundation lecture series has gathered together 150 speakers at more than 50 lectures addressing trends, experience and good business practices in the realm of social issues.
