Financial management for sustainable development in Mexico

For some, sustainable development is associated with the environment. For others, it means investing in projects or technology that will reap long-term benefits and have no tangible effects today. This couldn’t be further from the truth. As defined by the UK Commission for Sustainable Development, “Sustainable development is development that meets the needs of the present, without compromising the ability of future generations to meet their own needs.

The business and industrial sector has traditionally been driven by a single factor, such as profit or efficiency, to the detriment of other vital components on which society depends, such as local communities, the environment, science and technology or the welfare. The negative impact on society of this one-dimensional approach has been reflected in large-scale financial crises caused by irresponsible banking, or even in sharp changes in weather patterns. However, the growing influence of established and socially responsible corporations, such as HSBC, combined with the emergence of new players, such as Google or Facebook, has contributed to changing the rules of engagement and putting more pressure on their docks to adopt corporate practices that are more in line with sustainable development.

Good financial management is defined by the efficient and effective management of the company’s funds in such a way that the objectives of the organization are met. This is accomplished by planning, monitoring, organizing, and controlling the monetary resources of an organization. If the objectives are focused on the ability to balance different, and often competitive, needs with an awareness of the environmental, social and economic constraints facing society, then the sustainable development component will be part of the driving force of the company. , rather than being perceived as an additional cost or labeled “the price of doing business.” Ensuring that you have the right financial management framework, whether internal or external, is the key to achieving successful sustainable development.

Over the years, Mexico has consistently contributed to sustainable development globally and has been leading by example in Latin America. Mexico’s progress in policy planning and institutional development in recent years has been remarkable, including the adoption in April 2012 of the General Law on Climate Change (LGCC), one of the world’s first climate laws and the first in a developing country. Under this law, Mexico aims to reduce its emissions by 50% from 2000 levels by 2050. The NDC proposal is consistent with this objective. Mexico has significantly reduced its CO2 emissions without hampering its economic development and, in fact, has experienced considerable growth. Several ministries now offer broad support to companies that want to grow the economy while at the same time having a positive impact on the local community involved, and the inflow of foreign direct investment in these types of projects is a testament to the fact that Mexico is leading the field. .

Through efficient financial management, you can build a solid foundation for your business, as well as provide bright opportunities for future generations.