SDGs in Spanish companies: Tension between competitiveness and sustainability?

In the last decade, sustainability has gone from being an aspirational concept to a critical dimension for the business model of many companies. In Spain, the evolution has been visible, but not linear. Regulatory pressure, social expectations and geopolitical changes have redrawn the rules of the game. At the same time, the recent relaxation of these rules has generated some uncertainty among those who had advanced in this direction.  

Where are Spanish companies today in terms of the Sustainable Development Goals (SDGs)? What progress have they consolidated and what barriers still condition their performance? The eighth report prepared by Esade and Fundació "la Caixa" analyzes how Spanish companies are contributing to the SDGs, what obstacles they encounter and what future scenarios may affect their competitiveness.  

Sustainability in Spanish companies  

The international context is not encouraging: less than 20% of the SDGs are on track to be met. Spain, however, is among the 15 countries with the highest degree of compliance in the world, with a score of 80.7 out of 100. Even so, the report reveals a persistent gap between institutional discourse and effective action.  

Spanish companies have focused their efforts on those SDGs that offer visible returns in the short term. This is confirmed by the analysis of the dual materiality approach: more progress is being made on issues of direct financial impact than on environmental or social commitments perceived as unrelated to the core business.  

In addition, there is a clear asymmetry between large companies - which are more professionalized and aligned with ESG frameworks - and SMEs, which continue to face significant structural limitations, especially the lack of technical, financial or human resources needed to deploy sustainability strategies.  

This diagnosis is framed in a global context of setbacks to the 2030 Agenda framed in polycrisis, uncertainty and deglobalization that requires recalibrating the strategic coordinates to maintain competitiveness without renouncing sustainability.  

Uneven performance  

The report assesses the current state of corporate engagement based on four dimensions:  

• Dual materiality: already present in 63% of the reports analyzed. This approach makes it possible to report both internal financial impacts and external social and environmental impacts. The most frequently reported topics are on the rise: employees, good governance, human rights, value chain, innovation and technology. 
• Governance: companies show significant progress in anti-corruption policies, female presence on boards and adoption of codes of ethics. However, there are still shortcomings in the homogeneity and quality of ESG indicators, making comparison between sectors difficult. 
• Planet: progress in environmental sustainability is uneven. Large companies lead in energy efficiency and emissions reduction. SMEs show difficulties in measuring impact, less presence of climate objectives, scarce digitalization and difficulties of adaptation in the value chain.  
• People: the social dimension shows dissonance. Commitments to diversity, inclusion and well-being are improving. However, little progress has been made in terms of equal pay, sustainability training or social traceability in the supply chain. Efforts tend to focus more on visible than structural initiatives.  

This uneven performance is not necessarily due to a lack of will. In many cases, the barriers have to do with the scale of the company, the availability of resources or the clarity of incentives.  

The competitiveness challenge: cost or value?  

One of the critical points of the report is the narrative conflict between sustainability as a burden and sustainability as an advantage.  

On the one hand, some companies - especially smaller ones - perceive ESG requirements as a regulatory burden that increases operational complexity without ensuring clear benefits, especially due to the cascading effect from large companies that pass on requirements to their suppliers, who do not have sufficient resources. 

However, the report is clear: there is no evidence that reducing sustainability requirements improves competitiveness. On the contrary, companies that integrate sustainability as a strategic part consolidate advantages in resilience, differentiation and access to financing.  

The challenge for SMEs is twofold. On the one hand, they face financing and know-how barriers to improve professionalization and ESG reporting. On the other hand, they need to achieve greater participation in decision-making bodies. It is essential to recover the "think small first" principle with regulatory frameworks that take into account their situation, contemplate their reality, give them more room for maneuver and avoid dissuasive effects.  

The new European strategy - the Omnibus Law, the Draghi Plan and the Competitiveness Compass - has sharpened the dilemma: should we continue to focus on sustainability as a competitive factor or should we adopt a more reactive stance? Faced with this dilemma, the report warns of the risk of the "free rider": if requirements are relaxed too much, many companies will opt for minimum compliance, weakening the strategic approach with which to build their future competitiveness on the basis of sustainability.  

The value proposition must give way to a systemic narrative that allows for a reorientation of the economic model. It is a matter of moving from maximizing immediate profit - which favors the exploitation of resources and externalizes negative impacts - to aligning market incentives with sustainable objectives. 

Sustainability at different speeds  

The report identifies four possible global scenarios of geopolitical and economic evolution towards 2027, with direct implications for the Spanish business community. 

From a scenario of self-sufficiency driven by nationalist withdrawal, with less international trade and less climate cooperation, to a second cold war of polarized blocs, with a retreat from multilateralism. Or a friendshoring scenario of selective alliances between like-minded countries. Even a lighter globalization of sectoral and more moderate collaboration.  

Each scenario poses different risks and opportunities. For Spain, the impact would be especially sensitive in export sectors, companies with an international presence or SMEs integrated in European value chains. If Europe veers towards protectionism, the space for shared sustainability may be reduced.  

In this context the EU faces its own dilemma: how to balance sustainable leadership with the protection of industry and its competitiveness vis-à-vis the US or China.  

Sustainability with high beams 

There are no categorical answers, but the report does provide clues for management teams: 

• Sustainability has become a critical variable for competitiveness, market access and corporate reputation.  
• In the medium term, it will be a differentiating factor. Not only because of regulatory requirements, but also because of its growing importance in financing, customer loyalty and talent attraction.
• Thinking in terms of dual materiality helps to prioritize. It allows us to identify which areas affect the business and which have an impact on the environment, and to align more effective strategies. 
• The challenge for SMEs is one of support, not commitment. Strengthening internal capabilities is as important as avoiding the deterrent effect of excessively demanding regulations. 
• Rethinking implementation models can avoid stagnation. It is possible to flexibilize without diluting, to adapt without giving up. Sustainability can be a lever for structural and operational transformation.  

In an uncertain and fragmented environment, Spanish companies must activate the high beams. Sustainability is not just an external goal, but a strategic vector that defines the capacity for adaptation, leadership and permanence.