Family businesses not only see investing in sustainability and operating responsibly as “doing the right thing”, they also believe it to be an important driver of their growth. 43% of family companiesres ensures that sustainability and digitalization are gaining relevance on the corporate agenda and have become a fundamental component of its business model, according to a report by KPMG Private Enterprise and the STEP Project Global Consortium. The One Step Ahead on the Sustainability Path study reveals how this type of company is an excellent ambassador of commitment to sustainability by demonstrating how to integrate best practices, create shared value, gain competitive advantage and achieve long-term growth. Jobs compiled data gathered from a survey of 2,439 family businesses from 70 countries, including Spain.

Despite the fact that the path to sustainability was started on many occasions with plans limited to compliance with current regulations to reduce its carbon footprint or minimize its waste, now a major shift is taking place towards a more strategic, long-term integrated approach. sustainability goals in business. It is not only about generating economic, environmental or social value, but also about creating family value for present and future generations.

multigenerational

The analysis alludes to a multigenerational commitment to creating value for all stakeholders as one of the characteristics that has enabled many family businesses to stand out as leaders in sustainability. As such, it represents a significant shift in mentality towards considering ESG aspects as an important investment for the future and not as a business expense.

Based on experiences and strategies shared by family entrepreneurs from the UK, Italy and Spain, among other markets, KPMG and the STEP Project Global Consortium identified eight factors that define sustainability performance. By promoting these keys, the authors argue, family business leaders not only guarantee better financial results, but also contribute to building stronger organizations for the next generation, as well as a more just society.

Among these factors, good corporate governance stands out. In this sense, they point out that choosing the right governance practices in family businesses is a crucial issue for long-term sustainability and add that companies with the right governance structures and practices usually show greater progress when it comes to setting their goals. into their strategy.

They also say that diversity makes a significant contribution to sustainability results, especially in relation to the number of female directors. Family businesses that participated in the survey and had at least three female directors recorded positive economic, environmental and social results.

family owned

Another key highlight is dispersed family ownership. The group whose ownership is concentrated in the family (between 76% and 100% of capital) scores low in the sustainability index, but the level of digitization is higher compared to the group whose ownership is less than 25% in the family. share. Keeping all the property in the family, they say, may not be the best option in terms of sustainability measures.

Digital transformation is also a key tool for increasing family business sustainability, as it streamlines and modernizes operations to respond to climate change. For these organizations, sustainability and digitalization remain interconnected and technology is a lever for sustainability. Companies must integrate digitization into their sustainability strategy, increase efficiency, reduce costs and promote innovative solutions.