The sustainability and the environment have become a determining variable for the economy and the center of strategic plans of companies. Sustainable transformation is, together with digital, the main driver of change in business models.
The conviction that extolling sustainability issues is synonymous with good management is widespread in the business community. Without clear sustainability strategies, there is no bank financing or public aid funds or business plans to support risk investment firms. Consumers sometimes seem to be slipping away from this ‘economic mainframe’ given the feeling that behind sustainability there is more marketing than reality. But it’s not like that. The progress is palpable. “In 2022, as has happened in recent times, we will see a significant increase in the number of Spanish companies that make promises of climate neutrality. And an increasing number of them will make public their transition plans, describing the changes in their models of business and management that will occur as a result of these climate promises”, explains Ramón Pueyo, partner responsible for Sustainability and Good Governance at KPMG in Spain in a recent report. From Mercadona a Almond, the port of Barcelona or the air sector, textile firms such as Mangothe Barcelona Free Trade Zone Consortium or the real estate Colonial they have announced advances in their green policy or will do so this week.
Car
The automotive sector is one of the most battered by environmental demands and electrification is rapidly transforming the product offering at the pace set by regulations. The distribution sector, agriculture or livestock, fashion, transport, logistics and even the real estate sector apply new environmental requirements. The green tide spreads.
supermarkets
All supermarket chains have been making enormous efforts for years to reduce the use of plastics, introduce recycled cardboard and even better regulate lighting. Mercadona, the largest distribution chain in Spain, has focused with millionaire investments in logistics efficiency, energy efficiency, waste management and commitments with suppliers. The company baptized its strategic plan as 6.25, with planned investments of around 140 million euros. The goal is to reduce plastic in packaging by 25% and maximize recycling.
The field and distribution
Environmental protection measures are applied by all distribution firms. A special case is that of Almond Origin, which also stars in ambitious strategies, with the aim of being a neutral company in CO2 emissions before 2027, 23 years before the objectives approved in the Paris SDG agreement. The plan foresees that this does not reduce the resources of the company, which is an example of vertical integration of food production and distribution. The transition to sustainable agriculture with the application of innovative techniques to save water and fertilizers, the proper management of pests and the preservation of biodiversity on farms is key.
Alimentation and drinks
Among the food firms, the beverage producers are immersed in changes. Mahou San Miguel has announced that it will allocate close to 40 million euros to promoting sustainability throughout its value chain in 2022, the year in which it begins to implement, both in Spain and in its main markets, a strategic plan that will be in force throughout the decade. This roadmap will involve a total investment of more than 220 million euros until 2030.
Textiles
The textile sector is another of those decisively involved in this green revolution. The big Spanish chains like Inditex, Mango or Desigual They are clearly committed to environmental commitments. This February, Mango announced that it is advancing its sustainable goals following having achieved that 80% of all its garments have the ‘sustainable’ label. Mango forecasts that 100% of the polyester used will be recycled by 2025, doubling the initial target set for the same year. In the same way, the firm also contemplates that in 2025 100% of the cellulosic fibers used will be of controlled and traceable origin, which means reaching the commitment five years ahead of schedule. In addition, the company maintains its goal that 100% of the cotton used is of sustainable origin before 2025. These efforts are doubly remarkable for a sector traditionally accused of being one of the most polluting in the world.
Port
But the environmental commitment does not only extend between product manufacturers. In transport and logistics, for example, efforts are also reflected in strategic plans. Like that of the port of Barcelona, conjured up in the objective of reducing emissions, it has made its innovation plan the epicenter of its future development. The head of environmental sustainability Barcelona’s port, Hèctor Calls, recently explained to his colleagues from the Balearic Islands the plans to improve air quality and many other measures within the framework of the plan for the transition to electricity generation in port spaces and the implementation of clean fuels for ships, terminal and vehicles operating in the port facilities. It is estimated that the generating potential in renewable energies -mainly photovoltaic- of the port area of Barcelona is greater than 100 MW of peak power, a value that might meet the demand for electricity from the ships that stop at the Port of Barcelona. The budget for the electrification of the docks is around 90 million euros of investment and will make it possible for the ships moored at the docks to connect to the electricity grid using clean energy with certification of renewable origin. This year there will be a tender for two pilot projects to supply electricity to ships through OPS (onshore power supply) connections. The first of these pilot projects, to be carried out at the BEST terminal, began last January and is currently in the pipeline. The second pilot electrification project will be implemented at the Barcelona Ferry Terminal and its tender will begin next March. Finally, the Energy Transition Manager has highlighted the importance of starting the administrative process for the request for access and connection to the new Ronda Litoral Substation of REE (Red Eléctrica Española), a key piece for the global development of the Dock Electrification Plan .
airlines
Aviation is committed to the ‘Destination 2050’ agreement (by Airlines for Europe) or the Toulouse declaration signed on February 4, 2022 by 35 European countries and 146 companies in the sector, with the aim of ensuring that aviation reaches emissions clean in CO2 in 2050. Decarbonisation in the sector goes through the use of hydrogen and solar energy. The middle way is the so-called SAF (sustainable aviation fuels) as the first real alternative to fossil fuel. SAF is understood as a group of biofuels for aircraft, consisting of a mixture of organic substances that are used as fuel, reducing CO2 emissions between 20% and 98%. Currently its use is very residual, only 0.05% of the total fuel consumed in Europe, but the goal is to reach 10% in 2030. Repsol has announced that next year it will start up its first biofuel plant in Cartagena .
Hydrogen
In transport, the promotion of public entities is fundamental. The first certified green hydrogen plant for public use in Spain, promoted by the Barcelona Free Trade Zone Consortium (CZFB) and Barcelona Metropolitan Transport (TMB) and built and operated by Iberdrola in the Polígono de la Zona Franca de Barcelona, is already in operation. The main objective of the facility, which has been operating since January 2022, is to supply green hydrogen to TMB buses and other fleets of hydrogen fuel cell electric vehicles for the transport of passengers and goods in the Barcelona area.
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Financing
But green is also relevant from a financial point of view, as a way of facilitating the financing of investments. An example is found in the real estate sector. Colonial and its French subsidiary Lyonnaise Land Company (SFL) have made official the conversion of all of the Group’s outstanding bonds, which represent a total amount of 4,602 million euros in green bonds. This status is achieved following guaranteeing the possession of a portfolio of environmentally sustainable investments with a value equal to or greater than that of its financing. With this operation, Colonial becomes the first Ibex 35 company to have all of its bonds classified as “green”, an alternative to company financing in an environment in which companies’ awareness of sustainability takes increasing relevance. This type of debt is intended to finance “green assets” which are those that have a positive impact on the environment. The Group’s intention is that any bonds it proposes to issue in the future will be issued under the Green Financing Framework as “green bonds” (subject to the availability of green assets at the time of any issuance). . New demands of the times.
