July 12, 2024. “How to create an action plan based on my business strategies and my potential impact” was the opening slogan of a special demonstration of the Propel digital tool, Business Impact Strategy Tool. VIVA Idea held this event for special guests to showcase the capabilities of this digital product, designed to guide business strategies towards sustainability.

At the demonstration, VIVA Idea presented how this innovative tool can transform the way companies manage their social and environmental impact. The presentation was given by Urs Jäger, VIVA Idea’s Research Coordinator, and Arturo Rodriguez, VIVA Idea’s Tools and Methodologies Coordinator.

Propel has been developed by VIVA Idea after several years of research and experience with companies and organizations in the region. This tool aims to help companies identify and maximize their positive impact while minimizing negative effects, aligning with the Sustainable Development Goals (SDGs), the Social Progress Index (SPI) and complying with emerging regulatory standards on sustainability.

Urs Jäger highlighted the importance for companies to understand their impacts in order to manage them effectively: “The ability to measure and report impact is essential not only to comply with regulations, but also to improve transparency and trust with stakeholders”.

Arturo Rodríguez explained how the Propel tool uses a series of trigger questions and a self-diagnosis to help companies assess their current situation and define a clear and actionable impact strategy.

The tool contextualizes the reality of the region or country where the company that uses it operates to evaluate its initiatives against the reality as measured by the Social Progress Index. This index, developed by the Social Progress Imperative, measures the social and environmental well-being of countries independently of their economic performance.

The index is organized into three main dimensions: Basic Human Needs, Foundations of Well-Being and Opportunities. These, in turn, are divided into specific components such as nutrition and basic health care, water and sanitation, access to basic knowledge, and access to information and communications, among others. Propel uses these indicators to provide a more complete and contextualized assessment of company impact.

Propel also aligns with the Sustainable Development Goals (SDGs), adopted by the United Nations in 2015 as a universal call to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.

Each component and indicator of the Social Progress Index supports specific SDGs, such as health and well-being (SDG 3), quality education (SDG 4), and gender equality (SDG 5), among others.

The tool requests information from users about the company and its initiatives, and then contrasts them with the GPI and the SDGs, in addition to assessing the alignment of the various actors involved, as well as with its stakeholders.

INCAE Business School professor and VIVA Idea researcher Urs Jäger summarized the process in which the tool helps companies with a series of questions that can be answered. “These questions help to assess how companies create impact and to define clear objectives for their impact strategy,” he explained.

The steps include identifying the reasons why it is important to measure and report impact, such as meeting legal requirements, satisfying customer expectations or complying with export standards. In addition, the company’s actions should be analyzed to determine whether its impacts are positive or negative and whether they are intentional or unintentional.

Another crucial aspect is to decide on which specific areas, such as the Social Progress Index (SPI), the impact reports should focus on. It is also critical to define the specific objectives that the company wants to achieve in terms of impact and to identify the key initiatives that will be implemented to achieve these objectives.

Establishing the methods and metrics to measure impact effectively and deciding how the results will be communicated to stakeholders are the final steps in this impact management process.

Ecoprint, a fictitious example

To illustrate how the Propel tool works, let’s consider the fictitious example of Ecoprint, a company that manufactures eco-friendly printers and seeks to improve its social and environmental impact strategy. Ecoprint needs impact reporting to comply with environmental regulations, satisfy environmentally conscious customers, and ensure the sustainability of its export operations. The company creates a positive impact by reducing the use of plastics and using recyclable materials in its products, although some suppliers may have unintended negative impacts on the environment.

Ecoprint’s impact reports focus on the use of sustainable materials, the energy efficiency of its products and fair labor practices in its supply chain. Impact goals include reducing its carbon footprint by 20% over the next three years, ensuring that 100% of its suppliers meet environmental and social standards, and educating its customers about sustainable printing practices.

Key initiatives include the adoption of energy-efficient printing technology, an ink cartridge recycling program and the creation of partnerships with green suppliers.

Ecoprint will measure its impact through annual environmental audits, supplier surveys and life-cycle analysis of its products, reporting on its impact through annual sustainability reports, press releases and its website. This process of reflection and evaluation, guided by the Propel tool, will help Ecoprint develop a more effective impact strategy aligned with its sustainability values and objectives.

A customized report

During the demonstration, it was pointed out how the tool generates a detailed report that includes personalized recommendations to improve performance in various areas such as economic, environmental and social impact. In addition, Propel facilitates feedback from other stakeholders, which enriches the analysis and helps companies make more informed decisions.

Rodriguez stressed that “Propel not only provides a comprehensive impact analysis, but also offers a concrete action plan so that companies can effectively implement improvements.” The tool is designed to be flexible and adaptable to the specific needs of each organization, offering solutions in course, consulting and self-diagnosis formats.

This VIVA Idea initiative seeks to empower companies towards a more sustainable future, combining actionable knowledge with practical tools that facilitate the integration of sustainability into business strategy.