SAP Study reveals that corporate reputation (69%) and purpose (53%) are the main motivations for driving sustainability in business in the country.
CEOs and C-level executives of companies in Chile and Latin America have analyzed the achievements and progress in the sustainability agenda of their markets, as well as the impact this generates on their businesses in the third edition of the study Sustainability in the Business Leadership Agenda in Latin America, conducted by SAP in collaboration with various companies. For the first time, Chile has been included in this measurement, 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. In fact, 53% of the surveyed national companies consider sustainability a fundamental part of their business purpose.
“Understanding the value of sustainable business management is essential for the development of today’s and tomorrow’s businesses,” said Claudia Boeri, President of SAP South Region. “It is an issue that reaches every corner of the business and is rapidly expanding in the supply chains of Chile, the region and the world.”
Regarding sustainability strategy, 67% of local companies have a defined strategy, surpassing the regional average. Moreover, 35% of organizations have managed to incorporate pillars related to the United Nations Sustainable Development Goals in the last 12 months, representing significant progress.
Despite these achievements, there is still 16% of Chilean companies working on implementing their sustainability strategy, demonstrating growth opportunities. However, if these initiatives are executed in the coming months, the number of organizations with an active sustainability agenda could reach 83%.
Compared to other countries in the region, Chile has room for improvement and can follow the example of countries like Colombia, Brazil and Argentina, where fewer and fewer companies lack a strategy in this area.
The study also reveals the main motivations and challenges to achieve progress in the sustainability agenda. In Chile, a company’s reputation (69%) and its purpose (53%) top the list. However, one of the most significant challenges is the difficulty in measuring implemented actions (50%), followed by demonstrating return on investment (43%) and incorporating sustainability into business processes (42%).
In terms of sustainability reporting, 41% of Chilean organizations have an annual report, while 31% consider it unnecessary. However, progress in this area is expected as companies resolve the challenges associated with measurement and demonstrating return on investment.
“Technology plays a fundamental role in the development of sustainability agendas; 76% of surveyed Chilean companies already use or plan to use technological tools to manage and measure their sustainable activities,” explains Damián Rabinovich, Sustainability Lead of SAP South Region.
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. Additionally, the report highlights that 14% of Chilean companies plan to invest in carbon bonds in 2023.
The Sustainability in the Leadership Agenda of Chile and Latin America 2023 is a study conducted by SAP, in which 500 CEOs and top executives from medium and large companies with operations in Latin America participated. It provides valuable information about advances, motivations and challenges in the sustainability agenda in the region.
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