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PRICE SMART'S ESG JOURNEY

 Ronald Sinanan
Associate Director Regional Facilities and Maintenance Manager,  PriceSmart

​LINKAGE Q4 (2024) - HUMAN FACTORS

W hy did you decide to embark on your ESG journey?
ESG has always been part of PriceSmart's culture, and has been in PriceSmart's DNA since the business was founded, however, we decided to embark on a more formal ESG journey in response to several factors. 


As a publicly traded company with operations in environmentally and socially sensitive regions, we chose to focus on improving the Member experience and demonstrating responsible business practices within local communities to enhance our reputation and stakeholder trust.


For environmental concerns, with the ongoing changes in regulatory framework both international and regional, we wanted to comply and exceed expectations when possible, with compliance to environmental regulations, labour standards, and corporate governance requirements for operational continuity and risk management. We are also looking at long-term sustainability, as we recognise the potential risk associated with environmental degradation, social unrest, and governance failures. 

 What are 5 key steps you took along this journey?
1. Begin with initiatives that are readily achievable and/or have already been successfully implemented over the years.
2. Engage with our stakeholders to identify their key concerns. 
3. Start working on our ESG strategy aligned to the Sustainable Development Goals.
4. Measure and report our progress.
5. Communicate our current initiatives both internally and externally.

 What have been some challenges you have encountered?
Some of the challenges we have faced have been the collection of environmental data and the development of technology that will allow us to be more efficient. On the other hand, the preparation of the ESR report has been governed by the Global Reporting Initiative (GRI) standards. 


We are now working internally on an ESG strategy that will help integrate the efforts of the different departments. We are gaining maturity and we are getting better at these issues.


What has worked well to overcome these challenges?
Starting with our Senior Executives and VPs who support our ESG efforts, we continued with our teams who collaborate closely to improve understanding of ESG programmes and strategies to build the journey together. 


We are now building our internal capacity and leveraging technology to facilitate data collection and reporting. We seek continuous improvement and, over the long-term, emphasize the importance of sustainability goals and performance.

 What are some lessons you would give others from the Boardroom and C-Suite about ESG?
Some of the recommendations our Executive Leadership Team has given us along the way have been:
- to define specific objectives for our material topics and measure our progress
- to measure the impact of our programmes, which ensures that our data is reliable and compliant with internal and audit controls. 


We continue to work every day to implement these recommendations and learn along the way.

How can we as a collective drive progress through ESG? 
Collaboration is key across industries. By collaboration and networking, we can establish knowledge and experience sharing, and develop best practices for ESG reporting. This exchange allows organisations to learn from others’ successes and challenges, accelerating collective progress. 


Collaborating also allows for joint research, where applicable, and innovation. We can develop best practices in areas such as renewable energy and waste management. Working together also assists in advocating for policies and regulations that promote ESG practices and sustainable standards across industries. Also, collaborative efforts within the local communities allow us to understand their needs and aspirations regarding ESG initiatives. 


Overall, by fostering collaboration across industries, stakeholders can harness collective expertise, resources, and influence to drive meaningful progress toward sustainable development and responsible business practices. Collaboration enhances resilience, innovation, and the ability to address global challenges effectively.

 

ABOUT THE AUTHOR

​Ronald Sinanan is the Associate Director Regional Facilities and Maintenance Manager at PriceSmart