Is sustainability a commercial and investment model? CentraRSE experts respond

Sustainability is not an expense or charity, but an investment and business model for companies that, among other things, allows them to be more competitive. In addition, it helps reduce costs, enhance human talent and enable trade.

These are some of the messages released yesterday about the true concept of business sustainability, which is conceived as an investment and business model that allows companies and entrepreneurs to be more competitive within their markets, which also benefits the country.

CentraRSE CEO Juan Pablo Morataya stated that in the event of the impact of the pandemic, companies that adopted this business model were up to 80% more resilient, due to the presence of sustainability standards and strategies. “A company should not start investing in sustainability with less than 5% of its budget, and then, depending on scale and impacts, measure how to increase or decrease that amount.”

He said that when the investment reaches 5%, in the next five years it becomes as high as 20% because it has created new economic resources because of the advantages that these resources produce in reducing other costs” and it becomes a virtuous circle. This is a very practical, accounting and financial way to understand where to work Sustainability, because if I invest 5% I will protect 80% of the risks that my operation may involve, this will turn out to be 100% profitable,” Murataya said.

More benefits

Sustainability helps in at least two aspects: in minimizing and reducing costs or expenses; And that it is a business enabler because companies can participate more in global markets with greater capacity, by integrating practices of transparency and accountability, human rights management, biodiversity, water footprint measurement, loyalty programs for their collaborators and strategic social investments in the communities where they operate, the director explained.

In addition, despite the initial investment for the implementation of these projects or mechanisms, subsequent savings are achieved in managing and using resources, supporting the environment, and retaining human talents.

In addition, they have access and more opportunities to increase sales to international markets and do business at better prices, since major global supply chains have set different rules in order to meet the demands of international markets.

Of these, the most developed is the European Union, which has 27 new regulations; OECD countries, which have a corporate due diligence guide and a guide on sustainability and responsible business conduct; And the United States, whose free trade agreement with Central America and the Dominican Republic was the first to actually include labor and environmental practices from which it can continue to benefit.

Enrique Crespo, Executive Director of Corporación Multi Inversiones (CMI) and Chair of the Forum, said that sustainability is seen as a fundamental issue of differentiation as the private sector and responsible companies take responsibility for state building, but he believes it is not. Important for the private sector only, so they also invite the public sector to join “because we need to create conditions for the country for sustainable development based on the contribution of all of us to mitigate the social and economic gaps of the space that touches us.”

“Sustainability is not philanthropy, it is not philanthropy, it is not voluntary, it is the practice of business that generates opportunities and profitability with a higher goal, thinking about the people who surround us and the society in which we live, and this year we want to talk directly about the link between sustainability and competitiveness, “too” On CentraRSE’s 20th anniversary, we want to go a little further and talk about the institutionalization of sustainability as a necessary way to increase the impact of sustainable practices and keep pace with the public sector by finding spaces for collaboration and co-construction “, said the entity’s president, Jorge Torono.