Sustainability has become a major concern for many companies, but the path to sustainability can vary widely from one company to another, depending on a number of factors such as:
1. The industry to which the company belongs, as some industries are more susceptible to negative environmental or social impacts than others. For example, energy companies typically have higher greenhouse gas emissions than financial services companies, so they may face unique challenges on their path to sustainability.
2. The size of the company, as larger companies may have more resources and capacity to implement large-scale sustainable initiatives, while smaller companies may need to focus on smaller-scale solutions and different sustainability strategies.
3. Corporate culture, because some companies may have a culture that prioritizes sustainability and social responsibility, while others may have a culture that focuses more on financial profit.
4. Geographical location, as the environment and social and environmental regulations can vary widely between countries and regions, which can affect companies' ability to implement sustainable initiatives.
Taking these factors into account, each company starts from a different point on its path to sustainability and the European Banking Federation has asked the European authorities for a common regulatory framework, although taking into account the implications of being in one situation or another.
One of the issues that arises is the number of sustainability indices that exist. These indices are tools used to assess and measure companies' performance in terms of sustainability, but the fact that there are so many different indices can create confusion and make it difficult for companies to know where to start.
In addition, some of these indices may have different evaluation criteria, which can make it difficult to compare the ratings of different indices. Not to mention some black boxes, which make it impossible to know what is behind the calculation that gives rise to the indicators.
Another problem is that so many indices related to sustainability can lead to 'cosmetic sustainability', which is when companies focus on meeting the specific criteria of an index that may be more convenient for them, instead of adopting a comprehensive and strategic approach to sustainability.
To address this problem, it is important for companies to understand which indices are most relevant to them and their sustainability goals. To do this, working with experts in the field (data companies like Raven), familiarizing themselves with the indices approved by Europe, and always keeping in mind that not all companies are comparable nor can they be measured by the same standard, although they can be measured with the same indices.