A survey revealed that, in Chile, corporate reputation and purpose are the main motivations for driving sustainability in business.
In the third edition of the study Sustainability on the Business Leadership Agenda in Latin America, carried out by SAP in collaboration with various companies, CEOs and senior executives from Chilean and other Latin American companies analyzed the achievements and advances on the sustainability agenda in their markets, as well as the impact this has on their businesses.
Chile was included in this measurement for the first time, along with Argentina, Brazil, Colombia and Mexico. The study reveals that Chilean organizations understand that sustainability goes beyond reputation and social responsibility, directly impacting their financial results. Indeed, 53% of the national companies surveyed consider sustainability as a fundamental part of their business purpose.
Claudia Boeri, President, SAP South Region, said: “Understanding the value of sustainable business management is fundamental to the development of today’s and tomorrow’s businesses. It is an issue that touches every corner of business and is expanding rapidly in the supply chains of Chile, the region and the world.”
Regarding sustainability strategy, 67% of local companies have a defined one, which exceeds the regional average. In addition, 35% of organizations have incorporated the pillars related to the United Nations Sustainable Development Goals in the last 12 months, representing significant progress.
Despite these achievements, 16% of Chilean companies are still working on implementing their sustainability strategy, which shows a growth opportunity. However, if these initiatives start to operate in the coming months, the number of organizations with an active sustainability agenda could reach 83%.
Compared to other countries in the region, Chile shows an opportunity to improve and follow the example of countries like Colombia, Brazil and Argentina, where an increasingly small number of companies do not have a sustainability strategy.
The study also reveals the main motivations and challenges for advancing the sustainability agenda. In our country, the company’s reputation (69%) and its purpose (53%) are at the top of the list. However, one of the most significant challenges is the difficulty of measuring the actions implemented (50%), followed by demonstrating the return on investment (43%) and incorporating sustainability into business processes (42%).
Concerning sustainability reporting, 41% of Chilean organizations have an annual report, while 31% consider it unnecessary. However, progress is expected in this area as companies solve the challenges associated with measuring and demonstrating return on investment.
Damián Rabinovich, Sustainability Leader, SAP South Region, said: “Technology plays a key role in developing sustainability agendas, with 76% of the Chilean companies surveyed already using or planning to use technological tools to manage and measure their sustainable activities.”
Regarding investment, 58% of Chilean executives plan to make a similar investment to the previous year, while 32% plan to increase it and only 10% plan to reduce it. In addition, the report highlights that 14% of Chilean companies plan to invest in carbon credits during 2023.
Sustainability on the Leadership Agenda in Chile and Latin America 2023 is a study carried out by SAP with the participation of 500 CEOs and senior executives from medium-sized and large companies with operations in Latin America. It provides valuable insights into the progress, drivers and challenges of the sustainability agenda in the region.
