Sustainable finance The future of business reputation

By Adriana Gallardo

In recent years, we have witnessed countless obstacles for the economy of any business or entrepreneurship. And just when we thought things couldn’t get any worse, Murphy’s law proved us wrong. But there is a topic that some of us have lost sight of, climate change.

According to a survey of 2,000 CxOs (customer experience directors) by Deloitte, many rate climate change as one of the top three issues to address, even more than other points such as innovation, talent competition, and supply chain challenges. Only economic outlooks were slightly higher. It also highlights that 61% of CxOs indicated that climate change will have a high impact on organizations’ strategies and operations over the next three years. Even 75% of organizations have already increased their investments in sustainability over the past year.

How to make the company financially sustainable?

1- Incorporate ESG (environmental, social, and governance) criteria in decision-making: consider these factors in the company’s strategies, operations, and decision-making.

2- Evaluate and report ESG performance: evaluate the impact that the company has had on the environment and society and report results in a transparent and accessible way to the company’s stakeholders.

3- Promote efficiency and reduce waste: implement practices to reduce environmental impact and improve profitability.

Having sustainable finances reduces exposure to legal, operational, and reputational risks, as it allows us to mitigate environmental, social, and governance hazards. It also reduces costs, improves efficiency, and promotes customer loyalty and satisfaction. It opens the door to new markets, as more and more consumers and investors value companies with responsible practices, helping us improve the company’s reputation, positioning, and profitability.

Moreover, they allow us to contribute to sustainable development through investment and financing of projects with a positive impact on society and the environment. We must always bear in mind that financial sustainability is not a short-term objective, but a process of continuous improvement and adaptation to our environment and the market.

Adriana Gallardo is an international speaker, author, and leader of the Adriana’s Insurance empire. Business and Life Coach, author, and producer. Creator of “Chingona Circle,” a group that empowers women, and the Empodérate conference series, which helps entrepreneurs and business owners achieve their goals. She lives in California.