Article by Margarida Mesquita
In recent years, corporate management models have evolved towards the integration of social and environmental commitments aligned with the business strategy, with a focus on the sustainable development of organisations.
During its 23 years of operation, Bluepharma has always been guided by these concerns, which are reflected in an active commitment to continuous improvement of facilities and capacities, and the search for scientifically differentiating solutions to help improve the health status of populations.
Meeting regulatory requirements, standards, expectations of stakeholders and even exceed them going forward, the company's strategy has always been set on the principles currently widely known as the pillars of sustainability.
This concept, which has taken many shapes and forms over time is becoming standardised, and runs the risk of becoming outdated by being associated with trends, marketing strategies or communication.
To understand the concept of sustainability is first and foremost to realise its purpose - to make companies more operationally efficient, financially healthy, profitable, promoting innovation, generating value, building the future with respect for their employees, society and the environment.
On the other hand, to understand the global nature of this movement we must revisit the past.
Environmental activism emerged in the 1970s as a response to economic growth based on practices that harmed the environment and people. The first United Nations conference was held and Earth Day was celebrated for the first time. Shortly afterwards, the 1987 Brundtland Report of the World Commission on Environment and Development, chaired by the then Prime Minister of Norway, provided the first definition of sustainable development as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs".
This first approach, which aims to reconcile economic prosperity, social inclusion and environmental management, marked the international political agenda and catalysed a path leading to transformation, largely promoted by the United Nations and the European Union.
Conferences, discussions and agreements have taken place in order to align consensus between countries, together with different sectors of society.
In the business context, academic studies suggest that companies should not only have legal and economic obligations, but also responsibilities towards society. Research in this area moved on to study models based on ethics and philanthropy, while several management theories have hinted at the intersection between the legal obligations of companies, the generation of value and a positive impact on society.
In 2001, the European Commission formally laid the foundations for the CSR - Corporate Social Responsibility - model. At the same time, consumers and the market in general place increasing strain on companies’ actions and purpose.
In 2004, aware of the pressing need to involve the financial sector, UN Secretary General Kofi Annan invited 20 major international institutions to develop guidelines and recommendations on how to better integrate environmental, social and corporate governance issues into asset management, under the UN Global Compact, and with the support of the World Bank and the Swiss Government. The result of this joint initiative was published in the form of a report, called "Who Cares Wins", where ESG (Environmental, Social and Governance) is mentioned for the first time.
The long list of conclusions and recommendations in this report can be summarised as follows: financial institutions found that in a more globalised, interconnected and competitive world, corporate management must address environmental, social and corporate governance issues, adding value to business through more effective risk management, which is environmentally conscious, promoting competitiveness and resilience, with high ethical standards and transparency, contributing to the development of the societies in which they operate.
At this point one naturally asks: If ESG is almost 20 years old, why is it that only now it is acknowledged globally?
There is no easy answer. The financial sector developed its own guidelines, and the UN persisted in its aim of universal alignment, but there was growing evidence of widespread passivity and ineffectiveness of actions taken to protect the environment and foster social development.
In 2015, in addition to the publication of the Paris Agreement, which sets clear objectives aimed at tackling global warming and decarbonisation, the UN outlined the Sustainable Development Goals (SDGs) divided into 5 pillars - people, prosperity, peace, partnership, planet - as part of the 2030 Agenda. Based on a global commitment to eradicating poverty, safeguarding human rights and seeking sustainable and inclusive development solutions, it ultimately aspires to guarantee that no one has been left behind by 2030.
In the years that followed, as it became increasingly clear that planetary boundaries were being exceeded and action had to be taken, according to the internationally recognised model of the Stockholm Resilience Centre at Stockholm University, the European Commission developed a number of legislative instruments, such as the European Green Deal and the European Climate Law. Political leaders, markets, regulators and civil society are now compelled to act, not just out of environmental awareness or social responsibility, but because they are legally obliged.
Financial guidelines have also evolved to effectively incorporate ESG requirements, and the European Commission has started drafting the Corporate Sustainable Reporting Directive (CSRD), with a focus on evidence and transparency. The European Financial Reporting Advisory Group (EFRAG) - which was set up in the beginning to provide technical support on financial reporting - was asked to contribute to its development, namely by outlining the rules and requirements for companies to report on sustainability data, impacts, opportunities and risks for the related Standards.
As the ESG recommendations proposed two decades ago began to take shape, we have witnessed short-term changes in the market, from the language used in advertising campaigns to changes in the purpose, mission and values of organisations. The trend now is to repeat compliance with sustainability criteria ad nauseam, as an unbeatable recipe for convincing customers and investors of the added value of the product/service in question.
This concept, which has also become part of our lexicon, can, however, be misleading and conducive to green washing - communicating sustainability without actually fulfilling its purpose, just as one more marketing strategy.
To minimise this risk, and above all to appraise the maturity of companies in terms of sustainability, several consulting firms have developed rating systems, technological measurement and reporting solutions have emerged, banks have begun to assess the ESG profile of these organisations in their risk analyses and, above all, the CRSD and the related industry standards will require data to be reported along specific rules, subject to auditing.
Bluepharma's lifetime commitment to this topic means that it has always implemented indicators associated with the environmental, social and governance pillars, which have been revamped and adapted to the new ESG requirements.
The relevant commitments, objectives and indicators were identified for each of the pillars and a correlation matrix was built between these and the direct impact of fulfilling the SDGs.
The results and targets for the future set for 2023 under each pillar were incorporated into the Annual Report, in the Sustainable Development chapter, which has resulted in a separate report, published on the company's website.
Bluepharma's policy is based on the best transparency, ethical and conduct practices, geared towards sustained growth, innovation, a growing presence in strategic markets, in full conformity with environmental protection and internal and external social responsibility.
We are committed to contributing positively to the challenge of global transformation that the world is facing, consolidating our performance everyday in ESG and acting as agents of change, in terms of corporate and individual responsibility towards each and every one of our people!