[Software] How a software group is supporting companies in their ESG inroads

[SliCeR]

The growing demand from investors and society at large for corporate compliance with environmental, social and governance (ESG) practices are pushing companies from different verticals to adapt their working methods and business procedures. With this in mind, Argentine software group Globant launched the Sustainable Business Studio to help customers gradually transition their businesses to the new green economy. “I decided it was a good and important challenge to twinning the digitalization and the sustainability aspects,” geologist Elena Morettini (pictured), who is head of Globant’s initiative, told BNamericas. The Sustainable Business Studio, whose LatAm neural center is located in Buenos Aires and the global operation in London, aims to provide organizations with tools to support climate action and to act with a more responsible business model. It will offer analysis of climate risks and opportunities, diagnostics and environmental, social and corporate governance reports, in addition to climate due diligence. Globant will also provide technical knowledge, digital tools and fundamental changes to support customers on the path to carbon neutral certification. Finally, there is also consultancy and training for senior executives and training programs across the organization. According to Morettini, a former geoscience advisor to Argentina’s state-owned oil and gas firm YPF, the initiative is directed not only to energy firms, which tend to be the most obvious and immediate focus of the "green IT" discussions, but to companies from other segments as well. Launched in December, the Sustainable Business Studio has not yet booked any specific projects but initial talks have started, Morettini said. “Budget matters, but it’s above all about changing culture. We’re entering the so-called decade of action to deal urgently with climate change, which means that we need to readjust and rethink mentalities and practices in favor of business legitimacy,” said the executive, to whom major corporates in the region are increasingly in tune with the ESG agenda. Practical sustainable examples that Globant promotes internally range from unnecessary email responses (such as “thank you” replies) to the adoption of carbon neutral certified partners and suppliers, said Morettini. Prior to YPF, where she spent 12 years, Morettini was president of energy transition at the Argentine oil and gas institute (IAPG). Her past roles also include reservoir geologist at Shell. In 2018, Morettini also led the B20 Argentina task force on energy, resource efficiency, and sustainability. B20, or Business 20, is the G20’s private sector initiative. Morettini left YPF last year to found a consultancy called: because energy matterS. And in November she was hired by Globant to lead the Sustainable Business Studio.The COVID-19 pandemic did not have an incremental impact on Globant's Q4 performance, according to CFO Juan Urthiague. In Q4, the group reported revenues of US$233mn, with an increase of 26.2% year-over-year. For the full year, revenues amounted to US$814mn, up 23.5%. Around 66% of Q4 revenues came from North America, 24% from Latin America and “others" and 9.8% from Europe, Urthiague told an earnings call. Latin America showed continued strength, growing at 54% year-over-year and 22.4% sequentially. “We are seeing very good traction there [in Latin America]. The operation in Brazil and Mexico also keeps improving. Brazil was a challenge for a while and we were able to make it happen and we keep on growing there and Mexico,” said Urthiague. “Then, all the other countries more or less stayed the same. All of them grew in absolute numbers. Argentina decreased a little bit, as a percentage of the total headcount, but also grew in an absolute number," he said. Globant’s top three industry verticals by revenue contribution are banks, financial services and insurance; media and entertainment; and consumer retail and manufacturing. One of the major clients in Latin America is AB InBev, the world's largest consumer beverage company. Globant has been working on their digital transformation in parts of the region, applying AI to help with revenue management, sales and operations. In December, Globant teamed up with Argentine e-commerce giant MercadoLibre on a joint program known as Certified Tech Developer, a training program designed to achieve rapid job placement for young Latin American developers in the tech industry. The program will be carried out together with Digital House. Globant and MercadoLibre aim to provide 2,500 scholarships and train more than 15,000 people throughout the region.