Sustainability

Sustainability is a form of development that meets the needs of the present without compromising the capacity of future generations, guaranteeing a balance between economic growth, care for the environment, and social welfare.

Source: Informe Brundtland

Sustainable Trade is the commercial exchange of goods and services in agreement with the principles of sustainable development. It is the creation of economic value through transparent and ethical behavior to ensure long-term viability, considering the decisions and activities that can have an impact on society and the environment.

Sustainable entrepreneurial activity implies that a triple bottom line must be applied to every decision and activity, taking into account economic, social and environmental considerations.

The commercialization of the goods and services that incorporate sustainable criteria in their production has risen. This is especially true in more demanding markets with greater levels of development, which often demand more environmentally and socially responsible products.

ProChile has a department in charge of supporting SMBs in their path towards differentiation. The department publicizes and promotes the importance of incorporating sustainable attributes in productive processes.

Sustainable Development Goals (SDGs) also known as Global Goals were adopted by all UN Member States in 2015 as part of a universal call to put an end to poverty, protect the planet, and guarantee that everyone enjoys peace and prosperity by the year 2030.

There are 17 integrated SDGs, which recognize that intervention in one area will affect results in another and that development must balance environmental, economic, and social stability.

Check out the progress of the SDGs with this link.

Source: United Nations Development Program.

Responsible Business Conduct (RBC) is the behavior expected of companies throughout the world, through which they address and avoid the negative side-effects of their operations, while at the same time contributing to sustainable and ethical development in the countries in which they operate. This standard can be applied independent of a company’s legal form, size, sector, or property and includes its supply chain and other commercial relations.

The idea of Responsible Business Conduct is established by internationally recognized norms, such as the UN Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises (and its subsequent Due Diligence Guidance), and the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy.

Check out more at this link.

The Subdepartment of Sustainability encourages companies to start and become part of voluntary sustainability certification systems, through which productive triple bottom line management can be communicated in a robust and verifiable manner. These certifications apply to attributes of a company that are audited and validated by a legitimate external actor.

In response to the wide variety of certifications available to companies, it is recommended that a profound analysis of the costs, benefits, and opportunities of each is carried out and that the relevance of the different certifications for clients and recipient countries is assessed.

There are many sustainable company attributes that are generally recognized in international markets. The relevance of each certification will depend on the characteristics of the company and its priority markets.

Some of the certifications present in the destination markets of Chile’s export supply are:

Fair Trade

Fair trade is a trade association based on dialogue, transparency, and respect, which seeks greater equality in international trade. Fair Trade contributes to sustainable development by offering better conditions for trade between parties and assuring the rights of the most vulnerable producers and workers. Some of the recognized certifications are: Fair Trade Certified, Fairtrade International and WFTO-LA.

Carbon Footprint

Climate change is one of the greatest challenges currently facing humanity. The generation of low-carbon products, processes, and services (corporate footprint) has become a deciding characteristic for globally conscious consumers. Providing information about a product’s carbon footprint gives it a competitive advantage in international markets, while neutralizing or mitigating this footprint provides a greater advantage still. Some of the certifications include: the Chile Footprint Programme.

Organic

Organic products are generated with the goal to maintain the health of people and the environment. Natural resources, land, water, flora, and fauna are maintained throughout the production chain and during a product’s creation, packaging, and distribution process. Some of the certifications include: USDA Organic and the SAG Organic Products Certificate.

Sustainable Fishery

The purpose of sustainable fishery is to increase the availability of fish, shellfish, and well-managed marine resources in the market. Among other things, it has arisen because of the growing demand among seafood consumers that resources are harvested in a responsible way. This movement rewards and promotes practices and standards that ensure the sustainability and traceability of seafood products. Among the certifications with greater international recognition is the  Marine Stewardship Council.

Sustainable Forestry

Sustainable forestry ensures the responsible management of forests and the products obtained from them, such as wood, cork, resins, and paper pulp, guaranteeing resource protection for present and future generations. International consumers look for sustainability guarantees in the forestry products that they buy and consume, both in their extraction and chain of custody. Some of the most relevant sectoral standards that apply in Chile are PEFC and FSC.

Corporate Social Responsibility or Responsible Business Conduct

Shareholders, investors, and/or consumers look for patterns of ethical behavior in companies. In this sense, sustainability reports have become a highly-valued tool in which human rights-related themes, such as child labor, labor rights, and environmental aspects, are communicated to members of society.

Energetic efficiency

Energy efficiency is achieved when goods or services are produced using less energy, while their quality and availability are maintained. This can be achieved through technological change or reducing inefficient and unnecessary energy use. Some of the recognized certifications are the Seal of energetic excellence and Energy Star.

Miscellaneous

Some certifications embrace a wide range of characteristics related to companies and the life-cycle of the goods and services they produce. These can include many of the attributes mentioned above as well as others, such as good management of natural resources and the use or non-use of certain products. Some of the certifications that demonstrate a company’s commitment to sustainable management are B Corps, Global Gap and Rainforest Alliance.