Sustainable Business Strategies

Introduction

Sustainability has ceased to be an option and has become a strategic axis that drives competitiveness in critical sectors such as oil, gas, water, energy and mining. These sectors face significant challenges related to climate change, resource scarcity and growing social and regulatory demands. Incorporating sustainable practices not only meets these requirements, but also generates tangible competitive advantages.

Benefits of sustainability as a driver of competitiveness

· Reduced operating costs: Adopting clean technologies and more efficient processes allows companies to lower their energy and operating costs. For example, in mining, improving energy efficiency by 5% in processes such as shredding can save millions of tons of CO2 per year, in addition to reducing significant costs (BBVA Communications, 2024).

· Regulatory compliance and access to finance: Environmental regulations are becoming stricter. Companies that integrate ESG (environmental, social and governance) criteria in their strategies not only comply with these regulations, but also access sustainable sources of financing, such as the €7 trillion earmarked for ESG investment in Europe (Drafting, 2024).

· Attractive to investors and consumers: Sustainability improves business reputation and attracts investors who are aware of the environmental and social impact. In addition, consumers prefer brands committed to responsible practices (Garcia, 2023).

· Technological innovation: The transition to renewable energy and clean technologies encourages innovation. In mining, for example, advanced technologies are being developed to extract lithium more efficiently and with a lower environmental impact (López, 2023).

· Crisis resilience: Sustainable companies tend to be more resilient to economic or environmental shocks due to their long-term approach and strategic diversification (Drafting, 2024).

Current context

Sustainability in the business context refers to an organization's ability to operate in a way that not only generates economic benefits, but also takes into account its social and environmental impact. This involves a holistic approach that seeks to balance economic growth with social responsibility and the preservation of the environment. In this sense, sustainability is not simply regulatory compliance, but rather a strategic opportunity to innovate and create long-term value (Pucker, 2024), (Cool & et al, 2024).

Companies must integrate sustainability into their business model, including the adoption of practices that minimize environmental impact, promote social justice and are economically viable. This requires a change in the way in which costs and benefits are perceived, where investments in sustainability are seen as an opportunity to improve operational efficiency and brand reputation (Cool & et al, 2024), (Chatterji & et al, 2024).

Global pressure for sustainable practices.

Global pressure toward sustainable practices is driven by a series of interrelated factors that seek to balance economic development with environmental protection and social welfare.

· The Paris Agreement, signed in 2015, has had a significant impact on the adoption of sustainable practices, such as the promotion of innovation in technology-enabled processes, the responsible management of resources and the commitment to reducing emissions. These actions not only help mitigate climate change, but they also position companies to be more competitive and responsible in a world that increasingly demands commitments to the environment (CAMPETROL, 2022), (Vela-Almeida & et al, 2021), (Jay, Isaacs, & Lihn-Nguyen, 2025).

· Sustainability has become a fundamental principle for companies, since any productive activity must consider social and environmental costs, ensuring that these do not exceed economic benefits (Vela-Almeida & et al, 2021). This implies that companies must adopt responsible practices that respect the limits of ecosystems and contribute to human development, in line with the Sustainable Development Goals (SDGs) proposed by the UN (CAMPETROL, 2022).

· In addition, there is a growing institutional and regulatory framework that promotes the conservation of biodiversity and the protection of the environment. Organizations such as the IPBES (Intergovernmental Scientific-Regulatory Platform on Biological Diversity) are evaluating the state of biodiversity and promoting practices that contribute to its conservation (Vela-Almeida & et al, 2021). This means that companies must be more proactive in their approach to sustainability, integrating environmental criteria into their operating processes.

The pressure also comes from the need to reduce the carbon footprint and greenhouse gas (GHG) emissions. EPC companies are being encouraged to implement measures to estimate, mitigate and reduce these emissions, as well as to promote the recovery, reuse and recycling of waste (CAMPETROL, 2022). This has become essential not only to comply with regulations, but also to improve corporate image and social acceptance.

Sustainability statistics in the sectors

Oil and Gas

· Emissions and energy transition: Pemex is committed to reducing greenhouse gas (GHG) emissions as part of its 2023-2027 Sustainability Plan. However, achieving net zero emissions by 2050 remains a significant challenge (Government of Mexico, 2024).

· Digitalization and automation: The industry is adopting advanced technologies to improve sustainability and operational efficiency. An annual growth of 9.5% is projected in digital transformation through 2028 (Market Intelligence/Advisory, 2024).

· Hydrocarbon dependence: Although Mexico seeks to diversify its energy matrix, hydrocarbons still represent a significant part of national energy production (Government of Mexico, 2021).

Mining

· Investments in sustainability: In 2019, the mining sector invested more than 7,450 million pesos in environmental actions such as water recycling and reforestation. Approximately 14% of the energy used in the sector comes from renewable sources (Editor, 2021), (Romero, 2025).

· Key projects for 2025: Initiatives are being developed that prioritize clean technologies and innovative processes, such as the use of solar and wind energy, thus reducing the carbon footprint (Editorial, 2024), (Romero, 2025).

· Reduction in investments: By 2025, mining investments are expected to decrease to 3.8 billion dollars due to government restrictions on exploration and concessions (EFE, 2024).

Energy

· Renewable energy: In 2021, Mexico generated 26.7% of its electricity from renewable sources, with targets set to reach 35% by 2024 and 43% by 2030 (Mexico Energy Partners LLC, 2025).

· Installed capacities:

o Photovoltaic solar energy: More than 7 GW.

or Wind energy: 7.7 GW.

o Geothermal energy: 976 MW3.

o Renewable potential: Mexico has an estimated technical potential to generate up to 32,307 GW from renewable energy, mainly solar (Iberdrola Mexico, 2023).

Water

• Water Management: The National Water Plan 2024-2030 seeks to guarantee equitable access to water, mitigate environmental impacts and improve water infrastructure with an investment of 20 billion pesos in 2025 alone (Government of Mexico, 2024), (Government of Mexico, 2024), (Editorial Office, 2024).
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• Water pressure: Mexico is facing a crisis due to water scarcity and pollution. It is estimated that per capita availability will fall to less than 3,000 m³ annually by 2030 (IMCO Staff, 2023).
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• Strategic projects: Among the initiatives, technical irrigation systems and desalination plants stand out to address water stress (Government of Mexico, 2024), (Editorial Office, 2024).

Differentiation between environmental, social and economic sustainability.

Business sustainability is based on three interrelated pillars:

Environmental sustainability

Preserve natural resources, reduce environmental impact and minimize polluting emissions.

It promotes sustainable practices in waste management and energy use (Brundtland, 1987).

‍Social sustainability

Ensure the well-being of communities and employees. Promotion of inclusion, safe working conditions, and social development in operational, tactical and strategic areas. (Elkington, 1997).

Occupational health and safety management platforms, technologies for digital community participation, and including training applications.

Economic sustainability

Ensure financial viability through operational efficiency and resource optimization. Balancing profitability with responsible long-term investments (McKinsey & Company, 2022).
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Adoption of IIoT and telemetry technologies for the automation of indicators and automated process control.

Benefits of Integrating Sustainability

Companies that integrate sustainability into strategies enjoy their numerous benefits:

· Cost reduction: Optimizing processes using automation and telemetry systems reduces the consumption of resources such as energy and water (IEA, 2023).

· Access to new markets: More and more customers and partners are prioritizing working with companies that demonstrate a strong commitment to sustainability (McKinsey & Company, 2022).

· Regulatory compliance: Adopting sustainable practices helps to comply with environmental and social regulations, avoiding penalties and legal costs (Elkington, 1997).

· Reputation and trust: Sustainable companies are often perceived as responsible and reliable, which improves customer loyalty and talent attraction (Brundtland, 1987).

According to a McKinsey study (2022), 70% of executives say that sustainable initiatives have improved their financial results in the last five years.

Sustainable Business Strategies

Sustainable business strategies for companies in the oil and gas, mining and water sectors focus on adopting practices that minimize environmental impact, promote social responsibility and ensure economic viability. Here are some key strategies:

· Adoption of ESG criteria: Integrating environmental, social and governance (ESG) criteria into business decision-making can improve a company's reputation and ensure greater long-term profitability. Investors and consumers increasingly value meeting these criteria, which can provide a competitive advantage in the market (Vogler, 2024), (Pagés, 2024).

· Decarbonization: Implementing decarbonization strategies is essential to reduce greenhouse gas emissions. This includes investments in clean and practical technologies that minimize environmental impact, as well as the promotion of a low-carbon economy (Pagés, 2024), (Vogler, 2024).

· Use of industrial automation technology: Incorporating innovative technologies, such as autonomous vehicles in mining and contaminated water treatment systems using IIoT devices, can increase operational efficiency and reduce occupational risks. Smart mining and the extraction of green metals are examples of how technology can help achieve sustainability objectives (Vogler, 2024) (Pagés, 2024).

· Collaboration with local communities: Establishing a constant and collaborative dialogue with communities affected by operations can improve relationships and mitigate the negative impact of extractive activities. This includes carrying out periodic water, soil and air quality analyses (Vogler, 2024), (Pagés, 2024).

· Rehabilitation of degraded areas: Implementing programs for the rehabilitation and restoration of affected ecosystems is crucial to minimize environmental impact and meet social expectations. Not only does this help restore biodiversity, but it also improves public perception of the company (Vogler, 2024).

· Research and Development: Invest in research and development applied to new extraction and processing techniques, with the objective of minimizing invasion of the environment and more sustainable. This includes research in technosoils and water treatment methods (Vogler, 2024).

· Transparency and Accountability: Maintaining clear and transparent communication about sustainable practices and the impacts of operations can strengthen public and investor confidence. Reporting on the progress made in sustainability and the challenges faced is essential (Vogler, 2024).

Sustainability indicators for technology companies

To measure and monitor sustainable performance, companies can use specific indicators adapted to their operations:

· Business carbon footprint: This indicator measures the total greenhouse gas emissions generated by the company. Technologies such as IoT sensors and control systems can monitor and reduce these emissions by optimizing industrial processes (IEA, 2023).

· Energy consumption per unit of production: Evaluate the energy efficiency of operations. Solutions such as advanced automation and SCADA systems can reduce energy consumption in real time (McKinsey & Company, 2022).

· Community Satisfaction Index: It measures the social impact of operations on local communities. This includes surveys on the perception of economic, social and environmental benefits derived from projects (Elkington, 1997).

· Percentage of recycled and reused water: Particularly relevant in the mining and water treatment sectors, this indicator reflects the company's commitment to the sustainable management of water resources (Brundtland, 1987).

Challenges and opportunities

Challenge: Strict and Changing Regulations

Environmental and social regulations vary between countries and regions, forcing companies to constantly adapt. Complying with these regulations can be costly and complex (IEA, 2023).

Opportunity: Technological Innovation

Sustainability drives the development and adoption of advanced technologies, such as IoT sensors for remote monitoring, real-time analysis and process automation, which improves operational efficiency and reduces costs (IEA, 2023).

Challenge: High initial investment costs

Implementing sustainable technologies such as SCADA systems, IoT or cybersecurity platforms requires significant initial investments. This can be a challenge for companies with limited financial resources (McKinsey & Company, 2022).

Opportunity: Reputation and Market Differentiation

Companies that adopt sustainable practices can position themselves as responsible leaders in their sectors, earning the trust of customers, investors and communities (McKinsey & Company, 2022).

Challenge: Resistance to organizational change

Integrating sustainable practices requires cultural and operational changes, which is often met with resistance from employees or leaders who prioritize short-term financial goals (McKinsey & Company, 2022).

Opportunity: Regulatory Compliance as a Competitive Advantage

Exceeding regulatory standards allows access to government incentives, sustainable financing and new market opportunities (McKinsey & Company, 2022).

Challenge: Supply Chain Management

Ensuring sustainability throughout the value chain can be complex due to dependence on suppliers who do not always adopt sustainable practices (Elkington, 1997).

Opportunity: Reduction of long-term operating costs

Technologies such as telemetry and automated control optimize the use of resources, reducing expenses in energy, water and waste management (CAMPETROL, 2022).

Challenge: Access to Viable Technology

In some markets, advanced technological solutions for sustainability, such as environmental monitoring systems or automation technologies, may not be available or be costly. (CAMPETROL, 2022).

Opportunity: Attracting Talent and Strengthening Organizational Culture

Employees, especially new generations, prefer to work in companies that demonstrate a real commitment to sustainability (CAMPETROL, 2022).

Opportunity: Access to sustainable capital markets

The growing trend towards investment in green and sustainable projects provides companies with access to financing on preferential terms (McKinsey & Company, 2022).

Opportunity: Mitigation of operational and reputational risks

The adoption of sustainable criteria reduces the risk of interruptions due to environmental disasters, social conflicts or regulatory sanctions (Brundtland, 1987).

Conclusions

Incorporating sustainability initiatives into business strategies not only meets growing expanding regulatory and social needs, but also serves as a crucial catalyst for innovation and competitiveness in vital industries such as oil and gas, mining, water and energy. Companies that adopt sustainable practices can lower their operating expenses and regulatory risks, secure new funds, improve their reputations, and attract investors and skilled workers.

A holistic approach that considers environmental, social and economic factors plays a crucial role in addressing business sustainability. The objective is to use cutting-edge technologies such as IoT, SCADA systems and telemetry to optimize processes, reduce emissions and effectively manage resources. Building trust and achieving long-term success requires promoting collaboration with local communities and promoting transparency

Companies can take the initiative to implement a more responsible economic model at a time of global disruption, energy transition, climate change and resource scarcity. Sustainability is not just a duty, but a strategic advantage that can transform challenges into opportunities, ensuring resilience and relevance in a constantly expanding market.

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