Sustainability and investments with social impact, a business challenge

Climate changes, changes caused by man in nature, as well as crimes that damage biological diversitysuch as deforestation, land-use transformation, intensive agricultural and livestock production or growing illegal wildlife trade, can accelerate the rate of planetary destruction.

In this context and within the framework “International Mother Earth Day” – a date that aims to make humanity aware of the problems caused by overpopulation, pollution, biodiversity conservation and other environmental problems – it is important to adjust the reality to a universe where corporate profits will have to join the benefits for the whole society.

The sustainabilityand also investing with Social influence, are no longer a choice, but an obligation, and this is the main challenge that companies face. This is clear from the analysis prepared by LLYC.

This changing framework requires companies to correctly interpret the actions of different government administrations (anticipation), adapt to this new reality, as well as a “diplomacy with impact” strategy, in order to evaluate before governments and parliaments good practices of companies in sustainability and social impact, creating a new business model of impact investing.

Risks that affect sustainability: In fact, most reputational risks that affect sustainability business sustainability they have their origins in corporate behavior environment, society and governance (ESG) which betray people’s trust in their various interest groups.

“Faced with pressure to act, not only from the demands of the communities in which they operate, but also from regulatory frameworks and global obligations, organizations must analyze very carefully whether their sustainability strategies are aligned with what they really believe in and support, or whether they will simply fall into current of greening”, he said Vicente Barletta Senior Director of Special Projects and Content.

Environmental emergencies: Climate changes It brings with it negative consequences, in the form of events against the safety and health of people, which require detailed plans for emergency situations, as well as communication; and because of that, companies that are less committed to this challenge suffer more damage to their reputation.

Activism sociopolitical: Brands are increasingly subject to social pressure to make a statement in some way about very different civic goals; and are rated to the risk of “cancellation” based on their public resonance.

Compliance Issues: As Companies Grow requirements of an ethical and normative nature in behavior of top company executives, the reputational risks caused by violating these standards increase equally.

To mitigate, avoid and even reverse these risks, it is essential to anticipate critical events, prepare for future scenarios, automate responses and engage in real-time conversation with enough ability to influence.

our health ecosystem The health of our planet and its inhabitants directly depends on it. Restoring those damaged will help end poverty, fight climate change and prevent mass extinctions.