Corporate environmental governance
The Executive Committee and the Sustainability Committee ensure that the Firm's environmental goals are set and that they are met.
Environment
We are particularly sensitive to the environmental impact of our activities.
Index of contents
Back to A Responsible Firm
Although the Firm's environmental impact is very limited, there is a special sensitivity to this issue, highlighting initiatives related to reducing the impact of the Firm's activities on the environment (including the commitment to achieve carbon neutrality by 2030), sponsorship of conferences and participation in activities related to environmental protection.
Index of contents
Carbon neutral by 2030
Our commitment is to achieve carbon neutrality by 2030, reducing greenhouse gas (GHG) emissions and offsetting those that cannot be eliminated.
Adherence to the TCFD
Management Solutions adhered to TCFD recommendations in May 2021 to make its commitment to the environment transparent.
Our carbon footprint
Our carbon footprint calculation is certified by AENOR ISO 14064.
The Management Solutions Forest in Amazonia
We created our own forest in the Amazon, which helps us reduce our emissions, raise awareness among our professionals, and support local communities.
Research, outreach and awareness-raising initiatives
We continuously develop actions on different fronts, such as training, participation in seminars, publication of specialized reports, etc.
Consuming responsibly
Although our type of business has a very limited environmental impact, we monitor our consumption levels and are committed to all recycling and waste optimization activities.
Corporate environmental governance
Ultimate responsibility for the assessment and management of climate change risks and opportunities affecting Management Solutions lies with the Executive Committee, the highest decision-making body within the Firm. This committee is informed of the climate risk and opportunities assessment findings, as well as the evolution of the Firm's CO₂ footprint, approves the Sustainability Policy and the carbon reduction and offset commitments (such as the declaration to be CO₂ neutral by 2030), as well as the main mitigation measures to be undertaken.
In addition, Management Solutions' Environmental Sustainability Committee meets every two months, chaired by the Firm's Global Head of Sustainability, with the involvement of a Managing Partner, the Head of Internal Departments, the partner responsible for the Energy Industry, the Head of Global Quality Assurance, the Head of Finance and the Head of Social Sustainability. This committee reviews the status of the risks and opportunities identified in relation to climate change and other environmental impacts, establishes the modifications to be made to the Sustainability Policy, approves the Good Environmental Practices Manual and designs, plans and monitors actions to reduce and offset the Firm's CO₂ footprint.
Finally, the Firm's President, the partner responsible for Global Sustainability and the Sustainability core competence partners for the different industries, countries and major clients, set the strategic direction on services to meet clients' sustainability needs and monitor on a monthly basis the development and results of such services, in order to provide our clients with cutting-edge value propositions to encourage their transition to a low greenhouse gas emissions economy and to adequately measure and manage the risks arising from climate change.
Management Solutions' commitment to an environmentally-friendly activity and, in particular, to climate change mitigation, is reflected in its Sustainability Policy approved in 2021, in which sustainable growth is a top priority. This policy was revised annually to include the Firm’s preference for using the most environmentally-friendly transport alternative for business travel.
In addition, Management Solutions is committed to raising awareness and involving professionals in environmental issues in line with their level of responsibility and providing them with the knowledge they need to implement good environmental practices.
To this end, the Firm has a Manual of Good Environmental Practices providing a set of practical, useful and educational recommendations aimed at modifying or improving environmentally-related behavior within the office to reduce the environmental impact caused by its overall activity and, more specifically, by each individual professional.
Guidelines are provided with the following main objectives:
• Improve energy efficiency and optimize the consumption of natural resources: water, energy, raw materials, etc.
• Preserve natural resources.
• Reduce the production of polluting substances: gas emissions into the atmosphere, soil or groundwater contamination, etc.
• Minimize and properly manage waste, reducing its generation and promoting its reuse and recycling.
• Raise awareness and educate all our stakeholders.
• Contribute to a sustainable development model where the current consumption of resources does not compromise the social and environmental development of future generations.
Carbon neutral by 2030
The unprecedented mobilization of the public and private sectors to reduce the impact of human activity on the planet highlights the critical importance of addressing environmental issues and reducing the impact of climate change on our society. Management Solutions aims to drive this change by contributing the talents and skills of its professionals and demonstrating its commitment to the Sustainable Development Goals and the Paris Agreement.
Both through internal initiatives and projects developed for its clients, the Firm promotes responsible activity to bring the temperature rise below 2°C, helping clients in numerous geographies to mitigate climate risks and adapt to the changes resulting from the transition to a low-emissions economy, as well as to clearly convey this work to an increasingly aware society.
In line with this ambitious goal, although the environmental impact of our activity is very limited, Management Solutions announced in February 2021 its commitment to achieve carbon neutrality by 2030, reducing greenhouse gas (GHG) emissions and offsetting those that cannot be eliminated through the constant evolution of its activity and the most innovative solutions to achieve sustainable growth in line with international agreements.
To monitor this objective, Management Solutions annually calculates its carbon footprint, a calculation that is subject to review by AENOR, an organization that independently verifies that the statement made by the Firm is complete, i.e. accurate, consistent, transparent and without notable discrepancies (ISO14064 certification).
Related links
Management Solutions commits to achieving carbon neutrality by 2030
Yearly Meeting 2023 to be emission neutral
Adherence to the Task Force on Climate-Related Financial Disclosures (TCFD)
To make this commitment transparent to our clients and other external stakeholders, in May 2021 Management Solutions adhered to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), responding to the growing demand for environmental reporting aligned with market best practices.
Information on the management of climate change risks and opportunities under the TCFD principles
The Financial Stability Board (FSB), aware of the need for companies to disclose information to help investors and insurers assess and price the climate change risks that companies faced, made the decision in 2015 to form the TCFD.
In 2017, the TCFD published its recommendations, which constitute an internationally recognized framework for disclosing the impacts of risks and opportunities arising from climate change and their management within companies.
In accordance with the principles of transparency contained in this framework, each of the four areas covered by the TCFD are outlined below, describing how Management Solutions assesses the risks and opportunities related to climate change and incorporates climate and environmental factors in its governance, strategy and risk management, and in its monitoring through metrics.
Strategy: identification and evaluation of risks and opportunities under different temperature increase scenarios
The TCFD establishes within its principles the need to assess and disclose the potential financial impact of the risks associated with climate change under different temperature scenarios.
In assessing these risks, Management Solutions has taken into consideration the scenarios published by the Network for Greening the Financial System (NGFS), a group composed of 127 central banks and supervisors and 20 observers, which contributes to the development of climate-related risk management in the financial sector and to mobilizing mainstream finance to support the transition to a sustainable economy.
Specifically, Management Solutions has performed its risk assessment according to the following scenarios:
• Net Zero 2050 scenario: this is an ambitious scenario that limits global warming to 1.5°C through stringent climate policies and innovation, reaching the goal of net zero CO₂ emissions around 2050 in line with the Paris agreement. This scenario assumes that ambitious climate policies are introduced immediately. Techniques to remove CO₂ from the atmosphere are used to accelerate decarbonization, but in a very limited way and broadly in line with sustainable levels of bioenergy production. Net CO₂ emissions reach zero around 2050, giving at least a 50% chance of limiting global warming to below 1.5 °C by the end of the century, with no or low (< 0,1 °C) exceedance above 1.5 °C in the preceding years. The physical risks are relatively low, but the transition risks are high.
• Current Policy” scenario: this scenario assumes that only current policies are maintained, leading to high physical risks. Emissions increase until 2080, leading to warming of about 3°C and severe physical risks. This includes irreversible changes such as sea level rise. This scenario can help to consider the long-term physical risks to the economy and the financial system if we continue on the current path to a "hot world”.
A. Net Zero 2050 Scenario
a) Risks inherent to this scenario
The risks under this scenario arise mainly from the impacts generated by the transition to a decarbonized economic and production model. Those identified as most relevant after the assessment process carried out by Management Solutions are as follows:
• Business: loss of business for the Firm resulting from the contraction or even lack of viability of those clients who are unable to meet the challenges posed by the transition to a decarbonized economic model. These risks affect all economic sectors, although they have a greater potential impact on those that are more intensive in greenhouse gas emissions.
• Regulatory compliance: potential delays in identifying or complying with regulatory requirements on sustainability in some of the geographies in which the Firm operates. At present, governments in the different countries are rapidly enacting legislation to promote the sustainable transformation of companies. A significant portion of this legislation is related to transparency in the management of environmental and climate change impacts by companies.
• Profitability: although the characteristics of Management Solutions' activity mean that greenhouse gas emission intensity is low, there is a potential impact of increased costs derived from the increase in the price of CO₂ credits used for offsetting greenhouse gas emissions.
b) Opportunities inherent in this scenario
• Business: increase in the Firm's revenues derived from accompanying clients in their needs to adapt their strategy, business and processes to a new environment of transition to a low-emission economy.
• Corporate reputation: positive impact on the Firm's image (with clients, employees and society in general) resulting from the generation of a cutting-edge value proposition and ambitious internal commitments in the area of sustainability, which may result in greater client loyalty and increased talent attraction and retention.
B. Current Policy Scenario
The main risks under this scenario arise from increases in the frequency and/or severity of climatic phenomena that are either acute or extreme (such as heat waves, floods, cyclones or hurricanes) or chronic (increased temperatures, droughts, etc.).
a) Risks inherent to this scenario
• Acute physical risks to the Firm: extreme weather phenomena that may result in a disruption of the Firm's activities, damage to assets or affect the safety of employees.
• Physical risks to clients: loss of value, revenue and even viability issues for those clients affected by extreme weather events that directly affect their business or infrastructure.
b) Opportunities inherent in this scenario
• Business: increase in the Firm's revenues as a result of supporting clients in their needs to identify, measure and manage these risks, or to increase the resilience of their business or processes to these climatic phenomena.estos fenómenos climáticos.
C. Management Solutions' resilience to both scenarios
Management Solutions' resilience to face emerging risks under both scenarios is high. Revenues from consulting services offered by Management Solutions to accompany its clients in the face of climate change challenges are likely to offset potential revenue losses from cutbacks in professional services by those who do not adequately address these challenges.
To this end, Management Solutions has developed and continues to invest in the development of a cutting-edge value proposition in the field of sustainability, both in terms of research and the dissemination of knowledge, as well as the development of measurement and management methodologies and the technological solutions that support them.
Management Solutions also invests significantly in training programs for its professionals to ensure that it has the best capabilities to support its clients in these challenges.
All this allows the Firm to be well positioned to attract and retain talent in this area, while at the same time improving its reputation.
With respect to regulatory risks, our R&D Area, together with our Regulatory Compliance Area, closely monitors (as discussed in the Risk Management section) all regulatory initiatives that could affect both the Firm (in all the geographies in which it operates) and our clients in this area, thereby transforming this risk into an opportunity.
With regard to the potential increase in costs that could be incurred, given the small size of the Firm's CO₂ footprint, even in scenarios of maximum carbon offset price increases, such increases would not have a significant impact on our profitability.
Finally, with respect to the potential impact on the Firm's assets or continuity of operations, it should be noted that the Firm has Continuity and Recovery Plans in place (certified by AENOR via ISO 22301) that are periodically evaluated to ensure the resilience of the Firm's activity to these phenomena (such resilience was, for instance, demonstrated during the COVID-19 pandemic). Also worth mentioning is the fact that our office buildings in the different geographies in which we operate are leased - which significantly reduces the risk of asset loss - and that all owned assets are duly insured.
Our carbon footprint
Management Solutions calculates annually and monitors quarterly the Firm's greenhouse gas emissions at a global level and by GHG scope, geography and source, as well as the intensity of emissions per employee. This calculation is certified by an external verification company (AENOR).
With regard to the setting of specific targets for the reduction of the greenhouse gas emissions footprint, the firm is using fiscal 2019 as the base year for setting these targets. Given the impact of the COVID-19 pandemic on the main source of emissions (employee travel), specific periodic targets will be set from the next fiscal year onwards, once the new normality in terms of travel has been fully achieved, in order to align the Firm with the goal of climate neutrality in 2030.
In FY2023, total emissions per employee decreased by 48.6% compared to the base year before the COVID-19 pandemic (FY2019), and by 56.8% if net emissions are considered. The increase in total emissions in FY2023 compared to the previous year is mainly due to the increase in the firm's average number of employees and the increase in the number of business trips resulting from the return to face-to-face work (but the emissions per employee resulting from such travel have decreased by 23.7% compared to the pre-pandemic base year).
In addition, a number of CO2 offsetting activities were carried out during the year (mainly related to emissions from business travel), offsetting 479 tonnes of CO2 eq.
Related links
AENOR awards the ISO 14064 carbon footprint certificate to Management Solutions
The Management Solutions Forest in Amazonia
In 2021, on the occasion of World Environment Day and European Waste Reduction Week, and to raise awareness of the need to offset our carbon footprint, Management Solutions launched two initiatives encouraging its professionals to share with the Firm their actions to protect the environment as well as to reduce and sustainably manage waste. In exchange for each action received, Management Solutions would plant a tree in the Colombian Amazon in collaboration with the NGO Saving the Amazon.
Thus was born the Management Solutions Forest, which has grown to 745 trees thanks to activities such as "Kilometers of Solidarity", a sports competition for a good cause in which nearly 200 of the firm's professionals managed to walk 5,500 kilometers, which were transformed into 550 trees, or the reforestation day organized in Colombia, in which more than 50 of the firm's professionals participated. This project has a double impact on the environment by providing a means of work for the indigenous communities in charge of planting in their reserves, thus contributing to improving their quality of life.
Related links
Solidarity Kilometers adds 550 trees to the MS forest in the Colombian Amazon
Reforestation Day with Saving the Amazon
Research, outreach and awareness-raising initiatives
As a sign of Management Solutions' awareness of the impacts of climate change and environmental sustainability, the Firm continuously develops actions on different fronts:
• Participation by the Firm in the Spanish Energy Club (ENERCLUB), an important platform for dialogue and a meeting point for companies and professionals dedicated to energy, which advocates sustainable development and the preservation of the environment.
• Organizing campaigns and participating in solidarity activities aimed at protecting the environment, such as Solidarity Kilometers, various collaborations with the NGO Saving the Amazon to contribute to the growth of the "Bosque MS" (which currently has 745 trees in the Colombian Amazon), or the Bogotá Green Race, organized by the Natura Foundation with the aim of restoring local Colombian forests.
• Neutralizing the carbon footprint of the firm's annual meeting, working to minimize emissions and offset those that cannot be avoided through emissions avoidance programs implemented in the Americas by the airlines used for the event's travel, with which we have cooperation agreements, and through the planting of trees in Caminomorisco, in Cáceres, which will remove the remaining emissions from the atmosphere. This planting (recognized by the Spanish Climate Change Office) was carried out with the Repsol Foundation's Green Engine on land affected by a fire in 2012, using local labor from disadvantaged groups, contributing to the recovery of biodiversity and to social impact.
• Participating in the activities carried out by the Chair for Hydrogen Studies at Comillas Pontifical University in collaboration with Acerinox, BBVA, Carburos Metálicos, Cepsa Foundation, Enagás, Redeia (formerly Red Eléctrica de España) and Toyota, with the aim of studying the role of hydrogen as a new energy vector in the transition towards a decarbonized economy and contributing to its development. The Firm is also involved with the Social Impact Chair at Comillas Pontifical University, which is supported by the Open Value Foundation, the Repsol Foundation, Mapfre Sustainable Finance Observatory and Management Solutions, and aims to promote knowledge, research and innovation around impact investment, linking companies’ sustainable growth with the social and environmental impact of their operations and investments.
• Participating in industry seminars and developing and delivering seminars and courses that address the issues related to climate change and the actions that organizations should take in light of the current regulatory framework, for example:
• Preparation of specialized publications related to environmental issues.
• Beyond our research work and participation in seminars, we are supporting our clients in multiple projects for the improvement of physical and transition risk measurement methodologies and their impact on Stress Testing, the measurement of their CO₂ footprint and the definition of a reduction strategy and targets through SBTi (Science Based Targets initiative), the adaptation to the new regulation and supervisory expectations or the incorporation of ESG factors in risk management, governance and reporting processes, among others. In addition, several events have been organized to raise awareness of the firm's credentials in relation to the application of Artificial Intelligence in the field of Sustainability.
Related links
Insights on sustainability
Technical Note on Regulations about Sustainability
Latest Events on Sustainability
Consuming responsibly
Our type of activity and intensive use of technology mean that our environmental impact is very limited, and we do not generate any waste of a hazardous nature. Despite this low environmental impact, we monitor our consumption levels of the most voluminous resources (electricity and water) and are committed to any initiative to recycle and optimize them.
Paper
Due to the nature of our activity, paper consumption is one of the Firm's most significant environmental impacts. However, the increase in remote work by our professionals, together with the implementation of initiatives such as the default configuration of double-sided document printing of documents and the growing awareness of professionals to use of information in electronic format (such as training courses, whose agendas are available online through the Intranet and the e-learning portal) have led to a gradual reduction in paper consumption in our offices.
This reduction in paper consumption achieved by the Firm in recent years has also been made possible by the reduction in the number of printed publications and other items that use paper, such as brochures, cards, invitations to events, etc., which in recent years have been replaced by digital versions (for example, in recent years the paper used in tickets for corporate events has been eliminated and the volume of brochures used in job fairs has been reduced, having been replaced by digital versions through the use of QR codes).
Plastics
In line with the increasing restrictions on the use of single-use plastics, the Firm has initiated a process to replace all items made from this type of material.
In this respect, since 2022, the firm has, for example, eliminated the use of plastic bags, replacing them with non-woven bags (TST), or disposable plastic cups in the offices, providing each professional with a personal thermos bottle or using cardboard cups as an alternative.
Energy
The rational management of energy from electricity in daily activities is a key factor in reducing the Firm's energy impact. Management Solutions not only relies on the awareness of all its professionals, but also pays special attention to the location of its offices.
For this reason, the buildings housing Management Solutions' offices are equipped with various energy saving systems, such as thermostats, advanced thermal insulation systems, presence detectors, low consumption lighting, automatic opening and closing faucets, etc.
Torre Picasso – the Firm's headquarters in Madrid – has the AENOR Environmental Management certificate, which attests to our commitment to the environment and ensures our good environmental practices. Both Torre Picasso and Bilma Business Center – the Firm's other headquarters in the Spanish capital – has BREEAM Excellent certification, which evaluates impacts in 10 different categories (Management, Health and Wellbeing, Energy, Transport, Water, Materials, Waste, Ecological Land Use, Pollution and Innovation). For its part, the Firm's headquarters in Bilbao has the Platinum Category of the LEED CS 2.0 Certification awarded by the USGBC (US Green Building Council). In the following years we intend to continue reducing our consumption of these resources promoting a responsible use among our professionals as well as other measures.
On the other hand, the Firm's long-standing commitment to the implementation of technologies such as videoconferencing, telepresence, live video streaming or VPN connection, has allowed their intensive use by professionals during the implementation of measures such as flexible work. This has led to a significant reduction in the number of trips made by our professionals, enabling more efficient energy management and contributing to the fight against global warming by reducing the corporate carbon footprint in line with the goal of achieving carbon neutrality by 2030. In addition, city (and in many cases intercity) journeys made by Management Solutions professionals take place using a transport platform that since 2019 has been emissions-neutral. The platform achieved this by investing in projects that combat deforestation in parts of the Amazon rainforest to offset the carbon footprint caused by their cars.
Furthermore, in October 2022, the Good Environmental Practices Manual and the Travel Policy were modified to include a preference for the use of the most environmentally friendly alternative means of transportation for business travel. In addition, during 2023 the Firm has expanded its mobility ticket program, which encourages the use of public transportation for commuting, reducing its environmental impact.
Waste management
Fluorescent lights and toner cartridges
For fluorescent lights and toner cartridges found in all of our offices, once depleted, they are deposited in special purpose containers in the buildings housing our offices, or they are returned to the supplier for proper reuse or recycling.
Paper and packaging
Paper and packaging that can be recycled are separated appropriately so that management companies can properly recycle them. In addition, our Madrid, Bilbao and Barcelona offices have special containers for placing confidential documents that must be destroyed. An external company is responsible for collecting these containers on a weekly basis as well as destroying and recycling these documents.
Computers and cell phones
As explained in the section on Social Action, the Firm’s global policy on computer equipment and mobile phones involves donating devices that are still in good working condition to various NGOs. Equipment in worse condition is sold for parts that are reused, or if the model is no longer current, it is sent to a company for recycling.