Argentine companies lagging in use of sustainability software

A report sponsored by SAP indicates that Argentine companies are investing in sustainability issues but are still behind in the region in using management software to measure and report their ESG practices.

The survey results, presented at a press conference in Buenos Aires, show that of 100 companies consulted in Argentina, only 26% are using technology for ESG management, 58% are consulting with specialists on how to implement this technology and 45% are considering acquiring it.

Asked by BNamericas why Argentina is lagging behind in the adoption of ESG software and technology, Damián Rabinovich, SAP's sustainability lead for the South Region, said that "technology requires investment, which is why we have to look at the investment against the results,” adding that the company is seeing great demand.

In addition to management software, use of technology also involves installing sensors to measure carbon emissions from industrial processes and the acquisition of necessary devices, among other things.

“We're talking about the need for investment, dedication, time and effort,” said Rabinovich.

One of the motivations for companies to acquire ESG software is that they prefer not to depend on third parties to measure the impact of their sustainability actions. "Companies are now already beginning to develop their internal area [for sustainability]," he said.

The executive explained that using technology can make it much easier to gather information that companies already have on their operations. 

“Technology can reduce times and not just measure once a year – when the ESG report is published – but also allow them to carry out a sequential analysis month by month, measuring the evolution of an indicator,” he added.

Rabinovich also said that most companies that prepare sustainability reports in Argentina still do so using manual processes, taking an average of four to six months to collect the required information.

SUSTAINABILITY IN ARGENTINA

The SAP survey also revealed that 74% of Argentine companies have a sustainability strategy.

Some 34% of the executives consulted stated that they plan to increase investment in sustainability compared with 2022. Meanwhile, 59% plan to maintain these investments and only 7% think they will be reduced.

The reasons Argentine companies give to adopt a sustainable strategy differ somewhat from those in other Latin American countries. The main factor in Argentina is the commitment of CEOS (71%, or 9 percentage points more than in the rest of the region). In second place is the company's reputation, which is mentioned by 67%, in line with the average for the region.

Since Argentina does not currently have regulations on sustainability issues, adoption of sustainability due to regulatory compliance is below the regional average, but SAP hopes that the recent incorporation of sustainability criteria into the IFRS global standard will boost ESG investments in the country.