Latin American CEOs Embrace the Vision of a Sustainable Future!

Sell as much as possible. Capture the largest market share. Generate profitability no matter what…

The mottoes that used to motivate companies seem to have changed for good. In a world stroke by extreme environmental changes,  sensitized by a pandemic that triggered empathy at multiple levels and truly concerned about diversity, inclusion and equal opportunities; a key word is the name of the game for companies that have a purpose beyond making money or capturing customers at all costs: sustainability.

The good news is that more and more organizations see their business in the context of caring for the environment, protecting vulnerable populations, and engaging with the communities where they do business. A recent report sponsored by SAP, including a survey of more than 450 medium and large businesses in Argentina, Brazil, Colombia and Mexico, revealed that 45% of companies already have a sustainability strategy in place, while another 22% are working on having one. This means that almost 7 out of 10 organizations in the region have the topic in mind, focusing mainly on gender equality, the circular economy, training the workforce of the future, social entrepreneurship, and climate change. 

Every day I speak with CEOs across Latin America who perceive they have to make a choice: Should they concentrate solely on making their businesses profitable, or should they turn to implementing sustainable actions? Especially as consumers shift their preferences towards sustainable products, investors and employees demand responsible actions, and regulators push for new legislation.

The study entitled “Sustainability on the Agenda of Latin American C-Level Executives” set a “before and after” in the extensive debate on sustainability vs. profitability, with 60% of respondents stating that sustainability is profitable.

The reality is that there is no need to choose one over the other. Instead, we should be equally committed: On one hand, to continue developing successful and profitable companies, and on the other, defining and adopting a clear path for positive social impact and sustainable growth.

In addition to emphasizing the protection of the planet and people, sustainable practices are also an essential element for all companies that want to obtain competitive advantages. Faced with a more informed and responsible consumer; tangible benefits such as brand reputation, increased employee satisfaction, and the loyalty of this new generation of customers, also translate into positive numbers. 

I am proud to be part of a company that fully supports sustainability and helps others do as well. Our own actions include SAP’s recent announcement that it intends to reach carbon neutrality in its operations by 2023, that is, two years earlier than previously estimated. As far as "helping others do," we have our portfolio of solutions to help our customers execute and measure their sustainable strategies. It is not a minor issue: you can only improve what you can measure.

Furthermore, 28% of executives who responded the survey said they plan to increase resources allocated to the area of sustainability in 2021, while another 25% will keep the same level of investment made in 2020. Considering how complex last year was for many companies in numerous industries, seeing that more than half will either maintain or scale up their sustainable plans is a reassuring and optimistic finding.

We live in a constantly changing world. Amid all the unsteadiness, a certainty stands out: sustainable practices in the business world are no longer an option, but an imperative for all those companies that need a passport to the future.

It is the only way to truly achieve business success and assume our responsibility towards our stakeholders, communities and society at large.