The different roles in sustainability transition: Insights from our Latin America conference
A conversation with Martin Mariscal Lahusen; Volkswagen Head of GRC and Sustainability for Mexico, Bettina Cassegrain; HLB Global Director of Professional Standards and Sustainability Assurance, and Pablo Maldonado, HLB México Chair
Puebla, Volkswagen's hub for operations in Mexico and home to one of its largest plants worldwide, was host to our most recent Latin America conference, where the carmaker's Head of GRC and Sustainability for Mexico, Martin Mariscal Lahusen, offered a unique perspective on corporate sustainability.
Here are key takeaways from the session, highlighting lessons for organisations striving to embrace sustainability as a core strategy.
Sustainability and Volkswagen Mexico
"We have a clear vision to be the driver of sustainability towards the future," Martin explained as he introduced Regenerate Plus, Volkswagen's comprehensive corporate sustainability strategy, emphasising the need to drive sustainability while balancing profitability, reputation, and social impact.
The strategy is built on four key pillars: Planet, People, Nature, and Company. In his conversation with Bettina Cassegrain, HLB's Global Director of Professional Standards and Sustainability Assurance, Martin detailed the strategy's scope: "Within these pillars, we've crafted projects that address everything from reforestation and biodiversity projects to corporate social responsibility and diversity initiatives."
Reflecting the company's dedication to long-term, impactful change, Volkswagen's ambitious roadmap targets milestones for 2030, 2040, and 2050, aiming to bring change not just within the company but across the industry. "Sustainability isn't just about compliance; it's about transforming for the future," he noted.
While many still associate sustainability with environmental protection initiatives, Martin stressed its broader scope. "Sustainability isn't just about the environment. It's about social and governance aspects, too," he explained. Since 2015, Volkswagen has gone through a corporate evolution to integrate these aspects, moving from compliance as a necessity to compliance as a value. "We comply not because we have to, but because it's the right thing to do," he stated. This evolution shows how businesses are now aiming to integrate sustainability into their operations instead of treating it as a stand-alone concept.
Early lessons from Volkswagen: Sustainability and profitability
The debate over sustainability's impact on business goals was inevitable, yet it also redefined the essence of corporate objectives in today’s evolving business landscape.
As corporate sustainability shifted from a regulatory necessity to a source of competitive advantage, it challenged the once-common concern that these efforts could hinder profitability. As a result, businesses now take a fresh perspective on the matter. Today's markets witness a paradigm shift as customers increasingly demand ethical business practices, moving traditional profitability metrics towards sustainable value creation.
This change applies to any brand, not only smaller ones, which were once thought to embrace sustainability as a way to differentiate themselves from more established competitors. While sustainability initiatives might seem at odds with the traditional profit motives of corporate giants like Volkswagen, Martin argues otherwise. "Sustainability is a huge driver of sales and reputation. Customers today are seeking something meaningful and profound. They want companies that are not trying to get water to the world, but more to share the water," he added, emphasising the need to share, not hoard, resources.
This approach, he concluded, aligns with a global shift in consumer expectations, reinforcing that sustainability is no longer a cost but an investment in future growth and brand loyalty. "Sustainability is a clear and mixed driver for sales, but more than sales, it's about better reputation, well-being, and being a better company."
The role of accountants and auditors in sustainability transition
The conversation was an opportunity to discuss the practical challenges of implementing such a strategy within a multinational global player such as Volkswagen. Transparency was essential, especially when mitigating the risk of greenwashing.
“Communication is key, but it needs to be the right communication”, Martin stressed, emphasising that Volkswagen ensures that its messaging is both impactful and trustworthy by coordinating sustainability disclosures with risk management while covering the legal, reputational, international, and environmental aspects of the communication.
With increasing concerns about greenwashing and the overwhelming flood of information, Martin highlighted the critical role of auditors and accountants in ensuring accurate, impactful communication of sustainability efforts. “It is crucial to identify risks and opportunities before sharing information and to ensure that what businesses communicate aligns with reality.”
The role of auditors and accountants, both internally and externally, is essential in this process. As sustainability is growing from a box-ticking regulatory exercise to a source of competitive advantage and one of the key growth drivers, the role of accountants and auditors is also evolving from traditional oversight to becoming strategic partners and advisors. Already experienced with the rigour of financial reporting and well-equipped with a deep understanding of processes, materiality, risks, and controls, they are increasingly asked to guide businesses in their efforts to align sustainability goals with financial realities.
This is an opportunity for auditors and accountants not only to help businesses, large and small, navigate regulatory complexities but also to uncover opportunities for growth and innovation.
Key takeaways for businesses
The message is clear: regardless of size, every business needs to embrace sustainability transition to stay relevant. It does not make a difference if it is a global corporation or a small business–the value chain connects all players, bringing the universal impact of sustainable practices that spread smoothly throughout the whole supply network.
Embracing this shift is not just about staying compliant or competitive—it is about a collective effort to create a better, more inclusive future for all. Every business, regardless of its size, has a responsibility to contribute. Indeed, it is an organisation’s willingness to contribute which will be a prerequisite for guaranteeing long-term value creation.
Key takeaways for accountants and auditors
The discussion offered a powerful call to action for HLB and its global network of auditors and accountants. Not only are these professionals increasingly seen as "business partners, agile coaches, and drivers of transformation," but it is a role that applies to firms of all sizes—not just the larger ones serving major clients.
Embracing the sustainability journey could be a challenging path, but it is also one that promises profound rewards. "Let's be part of the sustainability journey and make the world a better place for all of us," Bettina urged.
Guidance from HLB Global
HLB's expertise in fostering sustainable business practices is a valuable resource for companies seeking to navigate this journey. Whether through robust risk assessments, innovative strategies, or transparent reporting, HLB is well-positioned to guide businesses in integrating sustainability into their operations.
For more insights on how HLB can support your sustainability goals, visit HLB Global or explore their accounting and compliance services.
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