Science and Tech

How to measure the social and environmental impact of your company

How to measure the social and environmental impact of your company

In a world increasingly concerned about the sustainability and corporate social responsibility, Companies have assumed a fundamental role by recognizing themselves as part of society and working more and more to be agents of change.

(Government aims at more tourists but with environmental sustainability).

For this reason, many more companies are adopting best practices and recognize the importance of measuring their social and environmental impact; evaluate its performance in terms of reducing carbon emissions, conserving natural resources, waste management, and the well-being of its employees and local communities.

Leading companies in sustainability have understood that accountability means not only reporting financial results, but also the social and environmental dimension of their operations. This allows them to set goals and make better decisions focused on generating well-being for people and the planet; which at the same time promotes transparency and trust with investors, consumers, collaborators and the entire community in general.

(Unilever expands its operating capacity with a new ‘megaplant’).

system B, is a global initiative that promotes and certifies companies that seek to generate a positive impact on society and the environment, it has a free and online evaluation with which all companies in the world can measure themselves.

Impact Assessment B is a tool that allows measuring, managing, and improving performance with a positive impact on the environment, communities, customers, suppliers, employees, and shareholders.

“This evaluation, which has been carried out by more than 200,000 companies in 80 countries around the world, provides a solid basis for strategic decision-making, as well as providing key information to communicate sustainability actions and demonstrate the company’s commitment to society. “By taking responsibility for their actions and being accountable in a transparent manner, companies can be drivers of positive change and contribute to building a more inclusive, equitable and regenerative future”says Camilo Ramirez, Executive Director of Sistema B Colombia.

The evaluation process is carried out through the B Lab website and this is adapted to the size and sector of the companies, which allows from SMEs to large multinationals to measure themselves and have a clear vision of their current performance. identifying opportunities for improvement in terms of sustainability and social responsibility.

The tool measures companies in five impact areas: governance, employees, community, environment and customers. Where, questions as diverse as: What percentage of the company is owned by full-time workers (excluding founders/executives)? Does your company monitor and record its universal waste production? How does it verify that its product improves the impact of its clients’ organizations?

“The assessment covers a wide range of issues, from waste management and energy consumption, to community engagement and equity in the workplace. Upon completing the evaluation, companies receive a report with recommendations and guidelines to improve their performance and advance their sustainability strategy.says Ramirez. In addition to this, Movement B has personalized measurement programs for companies that decide to start their process, accompanied by System B.

(Companies in the country make their own energy transition).

At the end of this evaluation, those companies that receive a minimum score of 80 points can begin their verification process to obtain the Certification as a B Company. In the event that the company decides to become certified, the System B organization analyzes its eligibility and, together, the processes that the organization must follow to achieve this objective are defined.

“In the end, the companies that are certified as Corps B are not perfect, but they assume a commitment to continuous improvement and put their socio-environmental business purpose at the center of their business model”, adds the manager. According to the report The Business Case for Purpose, prepared by the EY Beacon Institute and Harvard Business Review Analytic Services, 73% of companies with a clear purpose exceeded profit expectations; compared to 48% of companies that did not have a clear purpose.

On the other hand, according to the second study on the sustainability agenda in the Latin American business market, led by CIO Investigation, SEEKMENT and SAP, in which more than 410 senior executives from the main medium-sized and large companies in Argentina, Brazil, Colombia and Mexico; 69% of companies in the region were found to have a sustainability strategy in place, compared to 46% in the study presented at the beginning of 2021.

In addition, six out of 10 companies in the region state that having a sustainability strategy is part of their purpose, as well as a key element in building their reputational profile (63%), where there is also a commitment from of the CEO and the board of directors (58%).

This is a force for change that is growing every day in the region, which has made companies include sustainability at the center of their business strategy.; a process in which it is key to have tools that can help them make that leap.

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