In a business environment shaped by climate risks, new regulations, and growing demands for transparency from investors, customers, and communities, Latin American companies are making progress in incorporating sustainability into their business models. However, they still face significant challenges in integrating these strategies across their organizations and turning them into a long-term competitive advantage.
The main findings of the study “Integrated Corporate Sustainability Strategies in Latin America” were presented during a panel organized by Siemens Mexico, EGADE Business School at Tecnológico de Monterrey, and the American Chamber of Commerce of Mexico (AmCham), with the participation of experts from academia, the financial sector, industry, and business organizations. The study analyzed 355 companies operating in 11 Latin American countries, with the aim of understanding how organizations are incorporating sustainability into their business strategies.
Among the study’s key findings is that sustainability is no longer an isolated initiative and has become an increasingly relevant factor for competitiveness. In addition, 70% of companies address sustainability at the board level, while most already have formal policies and dedicated budgets in place. Nevertheless, significant gaps remain: 23% of organizations still lack formal governance structures, limiting their ability to drive deep and far-reaching transformations over the long term.
During the discussion, the experts agreed that the results accurately reflect the reality across the region. Although significant progress has been made, sustainability integration has yet to fully permeate all organizational levels, particularly in strategic decision-making and value chain management.
Gerardo Pérez Lechuga, Director of Innovation, Digitalization and New Technologies at Siemens Mexico, Central America and the Caribbean, explained: “The report confirms something we consistently observe among the most innovative organizations: when sustainability is part of the business strategy and is connected to technological transformation, it generates real competitive advantages. Digitalization, data and innovation are fundamental enablers for accelerating this process.”
The study identifies four organizational profiles based on their level of sustainability integration: Regulatory (44%), Strategic (31%), Prudent (15%), and Tactical (10%). The results show that companies classified as Strategic combine strong institutionalization of sustainability with a high level of openness toward their stakeholders and achieve the strongest performance in both sustainability and financial results.
According to Esteban Koberg, Director of the Master’s Program in Sustainable Business at EGADE Business School and co-author of the study, the data show that sustainability should no longer be understood solely as a corporate obligation. “Organizations that align governance, corporate culture and dialogue with their stakeholders demonstrate higher levels of resilience, innovation and financial performance. It is not only about managing risks, but also about capturing growth opportunities.”
The study was conducted by Esteban Koberg, Magdalena Aninat and Ana María Abarca, academics from Universidad Adolfo Ibáñez, in collaboration with the Association of American Chambers of Commerce in Latin America and the Caribbean (AACCLA) of the U.S. Chamber of Commerce. The study identifies areas for improvement in transparency and accountability. Although 73% of companies publish sustainability reports, only half of them submit this information to external verification processes. In addition, many organizations continue to focus their reporting on positive and visible indicators without sufficiently incorporating the challenges, negative impacts, or mitigation plans associated with their operations.
In this context, Mariuz Calvet, Chief Sustainability Officer at Santander Mexico and President of the Sustainability Commission of the Mexican Banking Association, highlighted the importance of having objective and verifiable information to mobilize capital toward sustainable initiatives.
“Investors and financial institutions need solid, comparable and auditable information to make decisions. Governance represents the foundation that enables environmental and social strategies to generate measurable results. Data is becoming increasingly relevant for channeling resources toward projects that create economic value while contributing to sustainable development.”
Another challenge identified is related to supply chain management. While companies show high levels of engagement with their employees, the study indicates that engagement with suppliers and communities remains limited, reducing their ability to manage sustainability risks and opportunities in an integrated manner.
According to Mauricio Alvarado, Country Manager at Dow and Vice President of AmCham’s Sustainability and Social Responsibility Committee, this challenge represents one of the main opportunities for the private sector in the coming years.
“Companies have made significant progress within their organizations, but the next step is to extend that commitment throughout the entire value chain. Collaboration among companies, suppliers, communities and governments will be essential to building more resilient and competitive ecosystems for Latin America.”
The panel included opening remarks from Bárbara Durán Magnère, Regional Director for Mexico City and Querétaro at EGADE Business School, and was moderated by Christiane Molina, Associate Professor in the Department of Strategy and Leadership at EGADE Business School.
The panelists agreed that sustainability is at an inflection point for the region. Rather than being limited to compliance, it needs to be integrated into business strategy as a driver of competitiveness. Organizations moving toward more integrated management models can not only reduce environmental impacts and strengthen relationships with their stakeholders, but also identify opportunities to improve their economic performance and their ability to respond to an increasingly demanding and dynamic market.