Or How to Outperform your Competitors
Sustainability Governance is the system that manages the environmental and social interactions of entities that results in the entity’s sustainability performance.
Sustainability Governance is managed from the implementation of policies, strategies, processes, decisions, and behaviors, which determine the entity’s performance in the areas of sustainability.
Sustainability Governance is the system through which entities are managed through their internal regulations, and society evaluates them from the point of view of sustainability.
The benefits of Sustainability Governance are measured in the better economic performance of the entity thanks to its better relationships with the social and environmental performance perceived by the actors of the economic system.
Sustainability Opportunities and Risks are the possible consequences that an entity can benefit/suffer from due to its environmental, social, and economic performance and that can attract/scare investors and customers.Identifying opportunities and risks is key to anticipating the entity’s future performance and results. For this there is a multitude of techniques, which combined, offer a clear vision of the areas that offer these opportunities and risks. The evaluation of opportunities and risks facilitates the knowledge of the situation and the prioritization of management actions to exploit opportunities and reduce risks.
The evaluation methodology requires an adaptation to the parameters of each entity so that its results are material, and Delta Increase helps to implement it successfully.
The Taxonomy is a tool developed by the European Union to help investors, companies, issuers and project promoters to enable the transition to a low-carbon, resilient and resource-efficient economy in the EU. The Taxonomy establishes “technical selection criteria” for different economic activities so that:They contribute substantially to at least one of the six environmental objectives defined in the Regulation:- Climate Change Mitigation- Adaptation to Climate Change- Protection and Sustainable Management of Marine Resources- Transition to the Circular Economy- Pollution Prevention and Control- Protection and Restoration of Biodiversity and Ecosystems
Do not significantly harm any of them; and Comply with the minimum social guarantees. Delta Increase helps companies, advising them in the implementation of sustainability governance that implies compliance with the Taxonomy.
Natural Capital is the stocks of renewable and non-renewable natural resources that, combined, represent a flow of benefits for society. Ecosystem Services are those goods and services obtained from Natural Capital that contribute directly or indirectly to the welfare of society. Natural Capital and Economic Activities are interlinked:Economic activities are dependent on natural capital (droughts or natural disasters linked to climate change)
Economic activities modify natural capital through impacts (climate change or loss of biodiversity). 2007 World Valuation: $ 125 trillion per year in Ecosystem Services (World GDP was $ 75 trillion).More than 50% of the world’s GDP is moderately or highly dependent on natural capital and ecosystem services.
Analyzing dependencies and impacts on Natural Capital helps to identify and assess risks and opportunities that translate into the income statement and balance sheet. Delta Increase performs the Natural Capital Assessment through the application of the first 8 steps of the Natural Capital Coalition methodology. Step 9 (Take actions) corresponds to the entity. Delta Increase accounts for the balance sheet and profit and loss account of Natural Capital following the criteria of the British Standard Institute: BS 8632: Natural Capital Accounting for Organizations.
Social Capital is the addition of Social Capital and Human Capital that, combined, represent a flow of benefits for society.Social Capital is the networks together with shared norms, values, and understanding that facilitate cooperation within and among groups. Human Capital is the knowledge, skills, competencies, and attributes embodied in individuals that facilitate the creation of personal, social, and economic well-being.
Social and Human Capital and Economic Activities are interlinked:Economic activities are dependent on Social and Human capital (regulatory framework, skilled talent pool of personnel, labor productivity, value chain trust, and reputation)Economic activities modify the Social and Human Capital through impacts (land rights, taxes, inequalities, working conditions, value chain stress).
Analyzing dependencies and impacts on Social and Human Capital helps to identify and assess risks and opportunities that translate into the income statement and balance sheet. Delta Increase performs the Social and Human Capital Assessment through the application of the first 8 steps of the Social and Human Capital Coalition methodology. Step 9 (Take actions) corresponds to the entity. Delta Increase accounts for the balance sheet and profit and loss account of Social and Human Capital following an own methodology aligned with the concepts of Natural Capital Accounting for Organizations.
Carrying out Sustainable Economy Management ensures that the value of the company is maintained or grows in the medium and long term. Understanding the value of a company as the present value of its future cash flows means that a company with Sustainable Economy Management becomes a safe value and refuge for investors by incorporating responsible economic management of its assets into its estimates and scenarios. and also of its liabilities, intangible liabilities, and operations.
The long-term vision of Sustainable Economy Management facilitates obtaining financing by incorporating into the economic management of the business those factors that favor either the company’s resilience over time, or the improvement of its income statement, or both at the same time. time. Delta Increase performs analysis of the structure of assets, liabilities, and operations to provide different scenarios that facilitate decision-making in the short, medium, and long term to guide the business towards Sustainable Economy Management
Sustainable Investment occurs as a result of a Responsible Investment that complies with PRI, Principles for Responsible Investment (independent entity but supported by the United Nations). PRI acts in the best long-term interest of:Its signatories (+3800 in +80 countries).
Of the financial markets and economies where the signatories participate and finally of the environment and society in general.
Complying with PRI means applying a series of principles, criteria, and measures to every investment decision.
Delta Increase define the criteria and measures to apply the principles and achieve a Responsible and Sustainable Investment.
An entity guarantees sustainability to its clients by ensuring a sustainable value chain from suppliers to clients.The sustainability of an entity is ensured through the extension of its sustainability governance to its value chain, that is, from suppliers to delivery to the end customer.
The basis of sustainable supply chain management is to offer sustainable production, which is achieved by managing the environmental, social, and economic risks and opportunities that suppliers face to optimize their processes.
Delta Increase offers advice for the sustainable management of the value chain from suppliers to clients.
The Circular Economy approach aligns the operational Business Model with a continuous positive development cycle that preserves and enhances natural capital:- Optimises resource yields, and- Minimises system risks- By managing finite stocks and renewable flows.
The Circular Economy is a journey to achieve the following:Material FlowsBiological material flows go through a three steps process: make, consume and enrich to start the cycle again. Non-biological material flows go through a three steps process: make, use and return to start the cycle again.
Energy Flows are based on renewable energy sources.
Delta Increase has developed a roadmap for companies embarking on the Circular Economy journey that allows for setting the Business Model shift in incremental scenarios with different paces and objectives according to needs and context.
Sustainable Waste Management is complementary to the Circular Economy as deals with the wastes that the Circular Economy in its current status cannot avoid. When Circular Economy is fully implemented there will be no need for Sustainable Waste Management but until then, it is required that the environmental and social risks those wastes may pose are properly addressed.
Sustainable Waste Management involves planning, collecting, sorting, and treating which entails either recycling, or reuse, or producing energy, or landfilling in the worst case. Delta Increase team has the experience of designing or reviewing Waste Management systems worldwide to include sustainable practices in their design and implementation.
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