Strategic Management and Sustainability #32
Corporate sustainability. Net-Zero emissions and much more
Good morning!
The next three newsletters are dedicated to corporate sustainability. We will present several companies and what they say they are doing in terms of sustainability. Specifically, today’s newsletter focused on companies which among others, want to reduce their carbon emissions.
The following companies are mentioned:
L’Oréal’s takes on sustainability which include improving diversity, reduce carbon emissions as well as other initiatives. By Vanessa Zhu Zhu
Dassault Systémes, a service provider that helps to reduce pollutants from coal-based production. By Eva Gajate Ayán
Mars’ 2050 Net Zero Plan. By Nadja Marsenic
Repsol’s commitments to the SDGs goals and its net-zero & energy transition plans. By Jorge Espín García
Enjoy reading,
Gloria Álvarez Hernández
Today's newsletter is 1246 words, about a 5.5-minute read.
L’Oréal’s take on sustainability: “We are a feminist company.”
Vanessa Zhu Zhu
In a recent interview for Arab News, Alexandra Palt, a top official at L’Oréal, addressed the importance of sustainability in the company’s strategic orientation. By 2020, L’Oréal achieved its first set of sustainable objectives by reducing its carbon emissions by 80% and improving the environmental footprint of 95 percent of its products. In 2020, the group also launched a multi-million sustainability program called “L’Oréal for the Future”, aimed to help finance forest ecosystems restoration, damaged natural marine and circular economy projects.
An important aspect that Alexandra Palt talks about in the interview is L’Oréal’s commitment to empower women in every field of their undertakings, she even states “At L’Oréal, we are a feminist company.” More than half of the company’s board members are women, while around 60 percent of the manager positions are held by women. The recently held Expo 2020 in Dubai helped raise awareness on the problems with street harassment and the effect of climate change on women. L’Oréal is doing a great deal to address sustainability, from which many companies can take inspiration on an ever-growing issue.
Source:
We are a feminist company, a L’Oréal top manager says. (2021, October 14). Arab News. https://www.arabnews.com/node/1945806/business-economy
Dassault Systémes
Eva Gajate Ayán
Dassault Systémes develops digital solutions for businesses and governments.
Manufacture virtual universes for sustainable projects. It focuses its activity on the renewable energy sector, helping to reduce pollutants from coal-based production.
According to the company's vision statement in 2021:
"Dassault Systèmes provides business & people with 3DEXPERIENCE universes to imagine sustainable innovations capable of harmonizing product, nature and life."
This company is one of the largest companies that provide the world with a sustainable alternative of the world. Although many examples of sustainable signature have been explained, none of them were bringing a benefit of these dimensions to humanity.
If we manage that the government and large companies can become sustainable firms through the proposals of this firm, the impact on society that this company would make would be immense. And if we also managed to get all the governments and companies in the world to use it, that is, if this company managed, together with the impact of the stakeholders on sustainability, to make this trendy around the world, we could drastically change issues such as global warming that They are influencing both the latest news.
Sources:
Mars Incorporated and its 2050 Net Zero Plan
Nadja Marsenic
Recently, the “talk of the town” when it comes to sustainability practices has been about the road to becoming Net Zero. As Mars and many other corporations, associations and governments are continuously announcing their goals to hit by the year 2050, we might ask ourselves “What does Mars’ net zero strategy tell us about how we perceive sustainability?
Mars Incorporated is one of the largest privately owned companies in the United States that is home to an endless number of products and brands like M&Ms, Skittles, Twix, Orbit, Pedigree, and many others. Its predominant products of confectionery and pet food make the company's assets (goods and services) largely dependent on nature. With many businesses and consumption linked to natural resources, the pressure on climate has become larger. Now, more than ever, it is important for Mars to focus its efforts on the protection of nature and sustainable practices.
To combat such issues, Mars has announced its alignment with the 1.5-degree target of the Paris Agreement by joining the Race to Zero and building its own sustainable generation plan with investments of $1 billion. The company is making tremendous efforts to redesign its supply chain by eliminating deforestation. The chief sustainability officer at the company, Barry Parkin, says, “More than three quarters of our impacts are embedded in the materials that we purchase - so we must change what we buy or where we buy it or, perhaps more importantly, how we buy it.”
Source:
Sustainability in fossil fuel producers
Jorge Espín García
Currently, most Co2 emissions come from the burning of fossil fuels, whether natural gas, oil or coal. In addition to the strong impact of burning these substances, in many cases the environmental impact generated is much greater, and their production is also very harmful. An example of these practices is fracking, which was previously used to obtain oil but has been banned due to the great environmental damage it causes.
In spite of this, companies working in the exploitation of this type of resources are constantly searching for a formula that allows them to combine their normal business activity with a long-term sustainability plan. To this end, we will study the case of the Spanish company Repsol.
Repsol is a multinational organization that operates in the energy market, mainly in the exploitation of resources such as oil and natural gas, although in recent years it has been penetrating the renewable energy market. The Spanish company is committed to meeting the 17 goals proposed by the United Nations for 2030. In addition, it has created its own roadmap with which it aims to achieve zero Co2 emissions by 2050.
Below we will analyze the policies that this company is following with respect to its sustainability plan.
Firstly, a clear commitment to the energy transition to renewables. In recent years, the company has been increasingly involved in projects using 100% renewable energies.
In addition to a commitment to this type of project, the company is betting on the generation of this type of energy in a progressive manner. As published in its own program: “The company is increasing by 3,000 MW its target for low-carbon electricity generation capacity, to 7,500 MW by 2025, and will begin to expand into other markets to become a leading international player in renewable energies.” (Repsol, 2021)
The company has been involved in cutting Co2 emissions since 2010. In the period from 2010 to 2017, the company has been able to reduce emissions by 23% and has proposed that by 2025 there will be a 25% decrease in emissions compared to the current situation. The company is also focusing on cleaner energy, expanding the production of high-quality biofuels derived from vegetable oils.
This specific case is one more example of the obligation that companies are having today to adapt to the social and ecological needs of humankind. In addition, this specific case makes us realize that every little detail is important, and that even if you are in one of the industries that produces more emissions, it is possible to find alternatives to try to improve the quality of life of stakeholders without damaging the quality of service and products offered.
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