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Thinking About ESG

By Fernando Lledó - Bupa México
General Manager

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By Fernando Lledó | General Manager - Wed, 11/30/2022 - 11:00

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The world has come a long way in recent decades, and so have companies, markets, and consumers. There is growing interest and awareness around the social impact of different companies as well as the efforts on environmental responsibility. Even though these aspects might have only been marginally important during a great part of the 20th century, they are now a decisive factor when choosing a brand, product, or service. Moreover, if we really want to be responsible, there should be a proactive approach to these problems, starting with a simple question: How can we, as company leaders, face the ever-changing times we live in?

In 2015, the UN organized the Sustainable Development Agenda, which was adopted by all member states and included 17 Goals (SDG). The idea behind it was to “end poverty, protect the planet and improve the lives and prospects of everyone, everywhere”.  Even though these goals were not legally binding for any country, it was expected that each member state would take ownership and really commit to obtaining good results. It is, of course, still in progress, but programs, dynamics and regulations need to be pushed by all members of society in all spheres of public and private life. We all have our own work to do.

Specifically, regarding companies, there have been enormous changes in the last 20  years or so: ESG (environmental, social and corporate governance) is now a common term for anyone related to modern enterprises. There are experienced executives leading the key efforts in these matters and budgets are increasing as well. 

In addition to those general drivers, each project – the construction of intelligent buildings and warehouses, the development of car engines, new consumer goods packaging, etc. – is now planned with its environmental and social impact in mind. Especially in Europe and the US, but also in the rest of the world, consumers now consider the carbon footprint of their trips, the efficiency of their cars, the fabric of their clothing, the testing of their makeup and if the company they are buying from is socially responsible … or not.

As an example, the last winners of the European Car of The Year are either small and efficient vehicles, or electric cars, which shows  the trends and way of thinking in those countries. On top of that, the European Union decided to reach zero emissions by 2035; they won’t be allowing new combustion engines after that year. Though it is certainly an ambitious – and controversial – goal and a somewhat radical decision for some, the message is clear: if climate change is an urgent problem, we need to take urgent measures.

But how can we make our own way if we do not sell manufactured goods? We must really understand the impact of our operations and develop our own sustainability agenda. In these complex times, we do have the obligation to strengthen our ESG programs, to share them and make our team a true part of them. 

Clearly, as a world-class business, we should provide our clients with the best products (insurance policies and health services in our case), the best customer service, and constant innovation. But, beyond that, we must also evolve as a company from the inside, with measurable goals and clear core values. 

We have implemented some interesting programs in Bupa throughout different regions and countries. One of them is eco-Disruptive, in which wee looked for the most innovative startups related to six different areas:

  • Decarbonization (CO2 reduction)

  • Circular solutions (solutions to reduce use of natural resources)

  • Sustainable products and services

  • Sustainable healthcare choices

  • Healthy Bupa buildings

  • Urban restoration and regeneration

We will choose one startup and provide support, along with a Bupa team, to develop their minimum viable product. It is a way to reflect our commitment to innovation and social responsibility, while making our people a part of it: we know that all real solutions for today’s problems must be global solutions, reached through teamwork.

Thereby, eco-Disruptive is part of a larger picture, of a greater effort that Bupa is taking to tackle environmental and social problems. We are all aware of these issues, but to recognize them is only the first step. We must take action and that is exactly what we are doing in Bupa, both outside and from within.

Of course, many other companies in the world are thinking of corporate responsibility, developing their own programs, and raising awareness through diverse campaigns. I’m happy about it. As I’ve mentioned, we must stop looking at each other as competitors, at least in terms of ESG. I’m also optimistic regarding those matters: I do believe that companies can look beyond their products and services and be socially and environmentally responsible. We, from our positions, must make it happen. 

Photo by:   Fernando Lledó

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