Spanish companies will face two main sustainability-related challenges in the coming years. The participants in “The Transition to a Low-Carbon Economy”, a business workshop organised by the Caja de Ingenieros Foundation and the ESADE Institute for Social Innovation, concluded that the circular economy and innovation aimed at reducing greenhouse-gas emissions will soon become the strategic pillars of corporate social responsibility (CSR) policies. The objective of the workshop was to review the financial and food industries’ latest efforts to use innovation to address the problem of climate change and define a clear pattern for the study that the two organisations plan to undertake in the coming months.

The workshop featured the participation of representatives of Spanish food companies that have emerged as leaders in the field of innovation against climate change. The effects of climate change have acquired particular importance on today’s global political stage, especially in relation to achieving the objectives of the Paris Agreement on climate change.

The devastating effects of rising CO2 emissions

The increase in CO2 emissions is having devastating effects on the planet that could worsen in the coming years. During the workshop, Heloise Buckland, Researcher at the ESADE Institute for Social Innovation, commented: “At present, 27% of Spanish territory is classified as arid. Almost 50% of Spanish territory could be uncultivable by 2040 if we don’t change our mindset.” She added: “Over the past few years, the average global temperature has risen by 0.85°C. If the temperature increases to one degree above pre-industrial levels, we’ll be looking at the disappearance of mountain glaciers all over the world, and that would be a serious threat to the drinking water supply. In addition, all of the world’s coral reefs – ecosystems that are home to a third of all life in the oceans – would die.”

The workshop also reflected the ways in which environmental criteria pose a direct threat to the financial sector. Xavier Fábregas, Director General of Caja de Ingenieros Gestión, reflected on the growing demand for his organisation’s socially responsible investment (SRI) funds, which follow environmental, social and corporate-governance criteria and therefore encourage sustainable long-term investments. “Investors are increasingly taking non-financial criteria into account. SRI funds offer a more rigorous risk analysis in order to calculate organisations’ environmental, social and corporate performance and measure their development and sustainable growth in the future,” he commented.

Also at the workshop, food industry representatives presented their progress in reducing CO2 emissions. According to the International Panel on Climate Change (IPCC), 60% of the world’s CO2 emissions are directly caused by human activity. The workshop participants agreed that eco-efficiency will be a key factor in implementing development models focused on resource optimisation to ensure sustainability over time as well as the ability to generate wealth, development and confidence throughout the value chain. The circular economy – sharing, reuse and recycling with the aim of creating more goods and services with fewer resources and generating less waste and pollution – was also held up as a basic principle of CSR policies.

Towards a low-carbon economy

Using the results of the workshop as a starting point, the Caja de Ingenieros Foundation will support a study led by the ESADE Institute for Social Innovation on the implications of climate change and the main advances being made in this area in the business world. The study, to be published next year, will explore the opportunities presented by a new model of low-carbon economy and the ways in which Spanish companies are addressing challenges in this area.

The study will include two phases of research. The first phase will consist of an analysis of international trends, the European and Spanish regulatory framework, and the role of the financial sector in the transition to a low-carbon economy. The second phase will focus on the various stages of the food industry, including the production, preparation, distribution and sale of food and beverage products.

Victor Cardona, Director of CSR at Caja de Ingenieros, commented: “CSR has been one of the strategic pillars of Caja de Ingenieros since the creation of the entity. As a cooperative, we focus our efforts on providing a steady return to society through our strong social commitment and respect for the environment. We are proud to collaborate on this study with a prestigious institution like the ESADE Institute for Social Innovation. The conclusions that we draw will provide a clear, precise roadmap for addressing the important sustainability-related challenges that await us in the future.”