Saturday, 14 May 2022 03:17

Evolution of Sustainability in Commerce: strategic allies for integral development

Written by Evelyn Alas

The Federación de Cámaras y Asociaciones Industriales de Centroamérica y República Dominicana -FECAICA- organized the virtual conversation: Evolution of Sustainability in Commerce: strategic allies for integral development in Central America and the Dominican Republic.

The opportunity was used to learn about the experience of different actors in the region in implementing sustainability in the DNA of their organizations.

Walter Bran, executive director of FECAICA, opened the discussion and emphasized that "sustainability is an engine of change for trade in the countries, regardless of the size of the companies.

The Minister of Economy of Guatemala, Janio Rosales, said in his welcome message that "sustainability in trade is a mechanism for reducing poverty and improving the quality of life of the inhabitants of the countries, and it is important to include it in public policies. We have little time to meet the Sustainable Development Goals (SDGs) and the commitment made by international bodies such as the WTO is important".

The conversation continued with the intervention of Marco Tulio Molina, Minister Counselor and Permanent Representative of Guatemala to the WTO, who emphasized that "the 2030 Agenda and the Sustainable Development Goals is not something new; it is included in several international instruments and arose in the declaration of the Millennium Summit in 2000, with three dimensions: economic, social and environmental".

He remarked that the concept of sustainable development has existed in the WTO context since before the 2030 Agenda. The relevance of the WTO to the SDGs is reflected in issues such as ending poverty, zero hunger, health and well-being, gender equality, decent work and economic growth, industry, innovation and infrastructure, reducing inequalities, climate action, undersea life and partnerships to achieve goals.

The Minister Counselor adds that the private sector is at the heart of the Sustainable Development Goals, having a direct effect on the way we do business.

He added that implementing the SDGs can involve costs, but also opportunities for development, investment and business growth in a responsible manner.

The Sustainable Development Goals and how companies are embracing them in their business models

The WTO has recognized the need for international trade and trade policy to support global efforts to achieve the SDGs and international environmental commitments.

This includes efforts to reduce pollution; promote the conservation, sustainable use and restoration of biodiversity; prevent the overexploitation of natural resources; combat climate change and adapt to its effects; and promote more sustainable production and consumption. Given the need for more actors to adapt to these measures and taking into account that adopting sustainable development objectives in their practices brings tangible benefits in different areas, it is important to learn about the experience of different companies.

At the beginning of the discussion, Susana Vásquez of Phillip Morris International (PMI) pointed out that "For almost two decades, Phillip Morris has been undergoing a transformation process, and sustainability is at the heart of this change.

The SDGs have to be viewed holistically in order to have a sustainable business. At PMI, we set ourselves the goal of building a smoke-free future and that cigarettes, as we know them today, will become a museum piece. In 10 years we want to begin to stop selling cigars in some markets, where regulatory conditions allow.

We want smokers to migrate to options that are less harmful to their health, for which we have invested heavily in research and development of these alternatives. One of our most ambitious environmental goals is that by 2025 we want to be carbon neutral in all our operations.

Sustainability has to be set with tangible and ambitious goals that can be met.

Lola Molina, founder of the Guatemalan company "El Mercadito de Lola" said that "we are a small guatemalan company, composed of production on the farm, the sales chain called El Mercadito de Lola, including a restaurant".

She said that "it does not mean that because we are small we cannot comply with the Sustainable Development Goals and we are proud of this growth and of being an example company through conscious food, respecting our environment, being able to become sustainable, being competitive. Becoming sustainable is a challenge. And we understand that there is another type of agriculture, which is regenerative agriculture. We want to have that harmony with nature and become sustainable".

Likewise, Aldo Caldera, responsible for the Sustainability Strategy and Agenda 2030 of Productora de Plásticos S.A. (PROPLASA), stated that "the business is led by young entrepreneurs, with our business focus being to meet present needs without compromising future generations. We incorporate within our business strategy the Sustainable Development Goals, through actions such as water saving, sustainable structure, sustainable management of renewable energy, communicating our plans and results in a transparent manner. Our owner's vision is that we must give back to the world what the world has given us".

Manfred Kopper, manager of Sustainability Services for Central America and the Dominican Republic at Ernst" Young, commented that the way of doing business in the world has changed.

Sustainability has become mandatory in order to compete, generating a multiplier effect in the value chains, identifying the negative impacts in each sector to turn them into positive ones and not only talk about sustainable development, but regenerative development for the damage we have already caused.

Aldo Caldera commented that, as mentioned by the Minister Counselor of the WTO of Guatemala, even though these are voluntary commitments, the inclusion of the Sustainable Development Goals in the commercial part generates important competitive advantages.

Susana Vasquez talked about the importance of this being an articulation of efforts between the different sectors, government, business and consumers, not only in regulations but also in incentives to enter into these sustainable practices.

Lola Molina commented that it is time to promote regenerative agriculture and conscious food, taking into account the basic needs in harmony with our planet.

The Minister Counselor commented that the WTO, the United Nations and the World Health Organization (WHO) adopt different agreements, be they commercial or of any other type, and these must be transferred for their incorporation into national legislation.

On the subject of tobacco, for example, the decisions taken at the WHO, in the framework convention for tobacco control, have a direct implication in the policies and decisions that companies must take as a company.

Commenting as an example on the aforementioned expectation of the industry to start to stop selling cigarettes in 10 years, he said that the discussions taking place at WHO, where there is a strong fight around novel products that use tobacco or nicotine without combustion, may generate incompatibility with the companies' plans, efforts in innovation and the incorporation of the SDGs.

His final message is that more attention needs to be paid to the work being done in international organizations and the work being done in the design of new business disciplines.

We need to promote a better relationship between our governments and industries. These strategic alliances and this exchange of information are fundamental. To the extent that the private sector works together and can analyze and address the needs of nations, to that extent our government, who are our representatives, can go to international organizations and make use of the mechanisms we have at our disposal; make sure that they are consistent and compatible with the SDGs that you are trying to achieve as a private sector.

To close the event, Walter Bran expressed his wish that the content and discussion would be very useful for companies in the region, reiterating that FECAICA aims to promote sustainability in the region.

Undoubtedly, nowadays, companies must seek to adapt to the Sustainable Development Goals. Increasingly, consumers are demanding that companies are accountable for their practices, as well as governments and regulators.

Encouraging these practices is also an excellent opportunity to review business models, internal regulations, processes and new markets. It is also clear that this is a topic that is constantly innovating, so meetings such as this one are necessary to learn about the experiences of all types of companies.