Best practices insustainability by
Peruvian MSMEs

This publication was produced by GRI. Represented by:
Ximena González Fernández, Competitive Business Program Coordinator in Peru
Daniel Vargas Fernández, Head of Country Desk Peru
With support from the Swiss Confederation State Secretariat for Economic Affairs(SECO) in Peru. Represented by:
Patricia Tord, Swiss Cooperation SECO National Program Officer
In partnership with the following organizations and their representatives:
CENTRUM PUCP Business School
Luciano Barcellos de Paula, Innovation and Sustainability Observatory Director
Ernst & Young
Nadia Malpartida, Climate Change and Sustainability Services Manager
Grupo RPP
Jorge Abarca Málaga, Operations and Technology Manager
Libélula
Javier Perla Alvarez, Partner and Sustainable Business Manager
Municipalidad Metropolitana de Lima
Patricia Lay Ferrato, Process Management Specialist
Perú 2021
Inés Ciancaglini, Perú 2021 Consultant
PromperúMaría del Pilar Alarcón Tarazona, Sustainable Trade Department Coordinator
Disclaimer
This publication has been financed by the Swiss Confederation State Secretariat for
Economic Affairs (SECO). Responsibility for the content lies entirely with the creator.
SECO does not necessarily share the expressed views and interpretations.
This publication does not represent the opinion of SECO but is the result of indepedent
research.
Acknowledgement
GRI would like to thank the Swiss Government for their financial support to thispublication.
April, 2021. Lima, Peru.
With support from

In partnership with

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Contents
Prologue..................................................................................................................................... 4
1. The context of Peruvian MSMEs.......................................................................................... 6
The economic and social phenomenon of MSMEs................................................................ 6
Retrospectives and progress regarding MSMEs in Latin America and Peru.......................... 8
The future of sustainability for MSMEs in Peru: scopes and challenges................................ 10
The impact of COVID-19 on Peruvian MSMEs....................................................................... 12
2. Sustainability as a competitive advantage......................................................................... 14
Sustainability in MSMEs......................................................................................................... 14
The sustainability report.......................................................................................................... 16
Benefits of the GRI Sustainability Reporting Standards for MSMEs...................................... 16
The GRI Competitive Business Program................................................................................ 18
Cycle of improvement............................................................................................................. 19
3. Best practices in sustainability in MSMEs as a result of the reportand its development.................................................................................................................. 21
Focus...................................................................................................................................... 22
Measurement.......................................................................................................................... 26
Management........................................................................................................................... 29
Communication....................................................................................................................... 32
GRI 205: Anti-corruption 2016................................................................................................ 36
Response to COVID-19.......................................................................................................... 39
GRI 301: Materials 2016......................................................................................................... 42
GRI 302: Energy 2016............................................................................................................ 45
GRI 306: Waste 2020............................................................................................................. 48
GRI 403: Occupational Health and Safety 2018..................................................................... 52
GRI 404: Training and Education 2016................................................................................... 57
GRI 405: Diversity and Equal Opportunity 2016..................................................................... 60
GRI 413: Local Communities 2016......................................................................................... 63
4. About this publication........................................................................................................... 68
GRI and its work in Peru......................................................................................................... 68
The Swiss Confederation State Secretariat for Economic Affairs (SECO)
and its work with Peruvian MSMEs........................................................................................ 69
Partner Organizations ............................................................................................................ 69
5. Datasheet............................................................................................................................... 74

4

small and medium-sized enterprises (MSMEs) play a
Prologue Micro,
fundamental role in generating employment throughout

Latin America. In countries such as Argentina, Chile, Colombia,
Ecuador, Mexico, Uruguay and Peru, it is not surprising thatapproximately 99.5% of enterprises are MSMEs, and that almost
nine out of every 10 are classified as micro-enterprises.
MSMEs face challenges that can put at risk not only the stabilityof their business, but also their very existence. These range fromthe shortage of qualified personnel and technological difficulties,
to limited space for innovation and the lack of financial capital.
However, it is also true that they have a wide range of opportunities
that, if taken advantage of will differentiate them from their maincompetitors.
How can MSMEs stay competitive in the challenging national
and international markets? The answer lies in shifting towards
a business model that raises more awareness of economic,
social and environmental impacts, and integrating sustainability
as a source of competitive advantage. This strategic vision ofsustainability will allow MSMEs to minimize risks throughout
their value chain and enhance their strengths. For this, efficientmanagement - both internal and external to the organization - will
be required.
The sustainability report is a management and communication
tool that allows organizations to manage their impacts, identify
strengths and points for improvement, increase credibility within
and outside the organization, motivate workers and createa dynamic decision-making process. The preparation of asustainability report is a transparency exercise in which MSMEs
have the opportunity to publicly share their efforts in becoming
better enterprises. The report also allows MSMEs to have apositive impact on their respective stakeholders.
GRI (Global Reporting Initiative) is the independent, internationalorganization that helps businesses and other organizations takeresponsibility for their impacts, by providing them with the global
common language to communicate those impacts. GRI provides
the world’s most widely used standards for sustainability reporting– the GRI Standards.

5
In Peru, GRI has been implementing theCompetitive Business Program aimed at
MSMEs since 2017. This program aims tostrengthen the competitiveness of MSMEs
through the identification, measurement,
management and communication of theireconomic, social and environmental impacts.
To date, more than 1,200 MSMEs have been
trained how to create a sustainability reportusing the GRI Standards. In addition, 568
SMEs from 16 departments published morethan 800 sustainability reports during thefour years of the program’s implementation.
As of December 2020, the GRI Competitive
Business Program in Peru has obtained
important results. It will remain committed
to supporting MSMEs in their development
and in the use of sustainability reports as
management and communication tools.
The experience of the Competitive Business
Program has led participating companies tofeature their implemented improvements intheir sustainability reports. In this publication,
more than 30 MSMEs share their businesscase studies. These relate to improvements inmeasurement, organizational management andcommunication of results. In addition, results
have been achieved in different sustainability
aspects, such as anti-corruption, materials,
waste, health and safety, diversity and equalityof opportunity, and local communities.
MSMEs shared how they focused their efforts
on key strategic activities and generated
more impact; how they used non-financial
performance indicators to measure thesuccess of their management and monitor
results; and how they communicatedtheir impacts to respective stakeholders,strengthening relationships with workers andclients.
As part of results management, companies did
not just carry out recycling or worker welfare
campaigns, they also implemented policies
that evidenced a greater commitment of theenterprise to continuous improvements at alllevels.

This publication has been prepared incollaboration with several partners whoshared the same vision and perspectives
on sustainability, among them the Swiss
Cooperation in Peru (SECO) that made theimplementation of the Competitive Business
Program in Peru possible; Perú 2021,
Promperú, EY, CENTRUM PUCP Business
School, the Metropolitan Municipality ofLima, Libélula and Grupo RPP.

Daniel Vargas Fernández
Head of Country Desk Peru, GRI

61

The context of Peruvian
MSMEs
The economic and social phenomenon of
MSMEs
To speak of MSMEs is to speak of one of the most importanteconomic players in Latin American societies. The concept of
MSMEs refers to three types of companies that, regardless of theirsize, are key contributors to the development of countries: micro,
small and medium-sized enterprises.
In Latin America, MSMEs represent a high percentage of theregion’s business structure. In some countries they constitute
more than 90% of companies1. The positive effects generated by
MSMEs are varied and benefit not only owners and shareholders,
but also improve the living conditions of workers, suppliers, clientsand civil society in general.
We know that these companies make significant contributions to
the region when it comes to generating employment and income,
eradicating poverty, and stimulating the productive activity of local
economies2. On average, it is estimated that they represent 20% of
Latin American countries’ GDP, in some they represent up to 50%.3
In Peru, Law No. 30056 establishes the parameters that determine
the business size of each type of MSME. According to this law, thesize of each company depends on the value of its sales. Microenterprises are companies whose annual sales are not greaterthan 150 Peruvian Tax Units (UITs); small companies have annual
sales in the range of 150 and 1,700 UITs; and medium-sizedcompanies have annual sales greater than 1,700 but less than
2,300 UITs.4
1. Micro, Small and Medium Sized-Enterprise Manual. A contribution to the improvementof information systems and the development of public policies, published by Deutsche
Gesellschaft für Technische Zusammenarbeit. Page 5. Available at: https://repositorio.cepal.
org/bitstream/handle/11362/2022/1/Manual_Micro_Pequenha_Mediana_Empresa_es.pdf
2. Ibid.
3. Ibid.
4. Law No. 30056

7
At the time of writing, one UIT equaled S/ 4,3005 (Peruvian Nuevos
Soles-PEN), or USD 1,185 (US Dollars).
In Peru, 99.6% of formal businesses are MSMEs.6 This segment
brings together economic agents that stimulate and contribute to
the economic development of the country. MSMEs contributed
30.7% of the domestic added value and generated 89.1% of private
sector employment in 2018.7 Their impact on the economic andsocial spheres turns them into main players that guarantee greatercommercial productivity and a new development dynamic. They
have greatly contributed to the economic growth experienced inPeru.

5. Supreme Decree No. 380-2019-EF.
6. MSMEs in figures in 2018, Ministry of Production. Page 7. Available from: http://ogeiee.
produce.gob.pe/index.php/shortcode/oee-documentos-publicaciones/publicaciones-anuales/
item/898-las-mipyme-en-cifras-2018
7. Ibid.

8

Retrospectives and progress
regarding MSMEs in Latin
America and Peru
Latin America
MSMEs represent 20% of Latin America’sGDP. However, compared to other regionswith similar levels of development, MSMEs in
Latin America tend to have fewer employees.
Furthermore, compared to micro and small
enterprises in other regions, they are
rather short-lived. In fact, only 45% of Latin
American MSMEs survive for more than two
years, compared to 80% of their European
counterparts.8
Even though each country’s legislation has
different criteria to classifying a company as
micro, small or medium, countries reported tohaving a greater number of MSMEs are Mexico(99.6%), Brazil (99.7%) and Peru (99.6%).9
Globally, MSMEs are the most common
types of companies. In its analysis of 10 Latin
American and European countries, ADEX’s
Global Business and Economy ResearchCenter showed that, on average, 92.1% ofcompanies were micro, 7% were small, 1.1%
were medium and only 0.4% were large.10
Peru
According to El Peruano11 newspaper, microand small enterprises play a central role in thedevelopment of the Peruvian economy. Many
Peruvian MSMEs operate in sectors suchas agriculture and livestock, fishing, mining
and hydrocarbons, manufacturing, energy
and water, construction, and commerce andservices, among others.

The importance of MSMEs for the Peruvian
economy lies mainly in their job creation
potential and the added value through theirbusiness model. As illustrated in Table 1,
in 2018 MSMEs in Peru employed 59.2%of the employed EAP, a situation similar tothe previous year. It is important to highlightthat micro-enterprises concentrated nearly
half of the employment (47.6%), while small
and medium-sized enterprises had a lower
participation (9.7% and 1.8%, respectively).12
In Peru, MSMEs face great and common
challenges, such as the lack of measurement
and management systems - their empiricalfunctionality being focused on daily necessities- and a few differentiating characteristics tocompete against, among others. Ultimately,
these challenges become the main barriers
to their growth in national and international
markets.
However, MSMEs are not simply passive
agents. In fact, they are key players that
innovate and use technology as a tool to
optimize their processes, generate savingsin operations, or incorporate it as part of thevalue offer of their products or services. In
addition, there is a digitalization trend in theoperations of MSMEs.
Regarding export dynamics, most of thecompanies are MSMEs, but their export
volumes continue to be small compared
to large companies. According to the book
‘MSMEs in Figures in 2018’ published by the
Ministry of Production, 69.5% of companies
that do non-traditional exports and 45.8%of those that export traditional products are
MSMEs. However, the volume of MSMEs nontraditional exports is only 9.7%, and just 3% of
the traditional ones.

8. “MSMEs generate 28% of GDP in Latin America, but still lack the necessary drive”, Spanish Confederation of Business
Organizations. Available at: https://www.ceoe.es/es/contenido/actualidad/noticias/las-mipymes-generan-el-28-del-pib-enlatinoamerica-pero-carecen-aun-del-impulso-necesario
9. International Comparison of the Contribution of MSMEs to the Economy, CIEN-ADEX Global Business and Economy ResearchCenter. Page 5. Available at: http://www.cien.adexperu.org.pe/wp-content/uploads/2019/09/Comparacion-Internacional-del-aporte-delas-MIPYMES-a-la-Economia-DT-2019-03.pdf
10. Ibid.
11. “Reinforcement of MSMEs”, El Peruano. Available at: https://elperuano.pe/noticia/95072-apuntalando-a-las-mypes
12. MSMEs in figures in 2018. Page 29

9Furthermore, the FOB value of MSMEs exports
constituted 3.9% of total exports. A figure thatis 1.7% lower than in 2017.13
It is worth noting that there are ‘sustainable’
MSMEs - their business strategy is based onsustainable development. These comprise bothtraditional and non-traditional products.
Considering the importance of MSMEs for
the Peruvian economy, their potential and thechallenges they face, it is important that we ask
ourselves the following question: what pathshould they follow to improve, develop, andbe successful at what they do?

Table 1- Estimate number of jobs in the private sector according to company size, 2018
(percentages)14
Estimate number of jobs in the private sector according to company
size, 2018 (Percentages)
Company Size

Company Size
No of people%% of EAP
employed

Micro-enterprise

7 988 759

71,6

47,6

Small company
Medium-sized company

1 633 702
309 094

14,6
2,8

9,7
1,8

MSME Total

9 931 554

89,1

59,2

Large company

1 220 058

10,9

17,38

Total employment on theprivate sector

11 151 613

100,0

66,5

Note: Company size is based on the number of employees. Micro-enterprise has up to 10 employees; a small company
ranges from 11 to 100 employees; a medium-sized company from 101 to 250 employees; a large company has more than
251 employees.
Note: The private sector includes interns, unpaid family members and independent workers that employ unpaid family
members.
Source: INEI-ENAHO 2018
Produced by: PRODUCE-OGEIEE

13. MSMEs in figures in 2018. Page 32
14. Ibid.

10

The future of sustainability for
MSMEs in Peru: scopes andchallenges
Despite their contribution to Peru’s economy,
MSMEs are facing many challenges that put
their very survival at risk. It is increasingly
difficult to remain competitive and relevant intoday’s market.
Therefore, sustainability management
becomes essential for any MSME that wants
to stand the test of time. According to theBrundtland Report, sustainable development- or sustainability - is the ‘development thatmeets the needs of the present generation
without compromising the ability of future
generations to meet their own needs withrespect to economic, social and environmental
development’.15
Indeed, longevity is one of the main
challenges all MSMEs face, as many risk
going out of business in the first two years.
As outlined in ‘Business Demographics in
Peru’, a report by the National Institute of
Statistics and Informatics (INEI), the numberof active companies in the country includedin the Central Directory of Companies andEstablishments was 2,699,130 as of the third
quarter of 2019. This figure represents 11%
growth compared to the same period in 2018.16
Based on INEI figures, we can say thatduring the third quarter of 2019, the death
rate of companies was almost 50% of thebirth rate.17 It is evident how difficult it is formany companies to survive over time.

In the current context, given that micro, small
and medium-sized companies are playing
an important role in the economic growth ofPeru, the market requirements keep growing.
As such, the competitiveness and success of
MSMEs will depend on how agile and pertinent
their management is in order to satisfy theirclients, and meet their respective businessgrowth and development objectives.
All this leads us to two other important points
that can help us understand why there has
not been greater progress in Peru in terms of
MSMEs competitiveness:a. Lack of management tools applicationand scarce strategic planning processes:
as we know, Peruvian MSMEs tend to focus
on their day-to-day operations, not having
enough room for planning ahead. Planning,
however, can help identify what has beenachieved so far and set short, medium andlong-term goals. In addition, the lack ofmeasurement and evaluation processes
requires the use of specific tools to close themanagement gaps. All this in compliancewith minimum law requirements.
b. Weak management that lacks theability to strengthen and capitalize
on relationships with their respective
stakeholders: to achieve their short,medium and long-term objectives, it isimperative that MSMEs establish trusted andtransparent partnerships with stakeholders,and implement the same approach to theiroperations. This will allow them to generatevalue more consistently when faced withchallenges and opportunities that arise
during the development of their activities.

The fundamental factor for MSMEs’ survivaland growth is competitiveness. However, it isdifficult to find a differentiating factor in terms of
their products or services - there are only a few
that can be used as competitive advantages by
MSMEs in general.

15. From sustainable development according to Brundtland to sustainability as biomimicry, Roberto Bermejo Gómez de Segura. Page
16. Available at: https://www.upv.es/contenidos/CAMUNISO/info/U0686956.pdf
16. Entrepreneurial Democracy in Peru, INEI. Page 2. Available at: http://m.inei.gob.pe/media/MenuRecursivo/boletines/boletin_
demografia_empresarial_nov2019.pdf
17. Ibid.

11
Finally, the lack of access to finance should
be considered as another barrier that prevents
MSMEs from being more competitive.
According to an Asia Pacific study, more thanhalf of the surveyed Peruvian MSMEs said
that access to finance is a real challenge for
their companies, with one third saying that it
represents a ‘high barrier’ to their business.18
As we have seen so far, there are different
obstacles that affect the competitiveness of
MSMEs. However, these should also be seenas opportunities for improvement. Thesebarriers should make us think about concrete
actions and alternatives that can help boost thegrowth of MSMEs and make the most of theirpotential.

In this scenario, the competitiveness andsuccess of MSMEs will depend on how
agile and pertinent their management isin order to satisfy their clients and meettheir respective business growth anddevelopment objobjectives

Table 2-BarriersBarriers
to MSME’s
growth 19
to MSME’s
growth¹⁹
Question 9.1: What are the barriers to your company’s overall success?
Financing

30%

Domestic government

28%

21%
10%

Marketing9%

Human capital

8%

Access to inputs

7%

22%

Technology

7%

23%

Physical infrastructure

6%

22%

Gender discrimination

5%

Bias

4%

8%

Intellectual property 3%

12%Linguistic

2%0%High barrier

3%

35%

38%

Government support

Technical infrastructure 3%

30%

6%

62%

17%

11%

27%
24%

56%

8%

62%

6%
8%

62%
62%

8%

64%

11%

8%

75%

9%

79%

9%

78%

7%

70%

20%

7%

74%

14%

20%
Barrier

40%

10%

60%
Not a barrier

80%

100%

Not applicable

18. The issue of financing was constantly mentioned by entrepreneurs in the training workshops and events organized by APF
Canada in Lima, mid-2019. At the time of thesurvey, about half (43%) of the respondents said they were seeking financing for their MSMEs.
19. “Lessons in Survival and Success from Peru’s Entrepreneurial Landscape”, Phebe Ferrer. Available at: https://www.asiapacific.ca/
publication/lessons-survival-and-success-perus-entrepreneurial-landscape12

The impact of COVID-19 on
Peruvian MSMEs
Currently, the COVID-19 pandemic is directly
and irreparably affecting many MSMEs thatare having to pause or completely cease theiractivities. Many have been forced to close due
to lack of sales and liquidity.
According to INEI, in Peru the industrial
production fell by 21.4% in the first fourmonths of 2020 and the manufactureof capital goods decreased by 47.9%,
affecting four in 10 Peruvians who lost theirjobs during the crisis. Some of the largest
companies have been severely affected, andin many cases MSMEs have gone financiallybankrupt and could not contribute to thecountry’s economy.
The Institute of Economics and Business
Development of the Lima Chamber ofCommerce (IEDEP-CCL, 2020)20 estimatesthat the GDP will fall by 3.7% in 2020 due
to the effect of COVID-19. The basis for thisestimate is the decline in private domestic
demand. Micro and small companies are and will be - affected the most. The various
measures taken during the state of emergency
due to COVID-19 caused the demand for theirproducts to drop considerably. This, added
to the lack of income, has resulted in forced
job layoffs and diverse disruptions in many
sectors, such as tourism.
On the other hand, as part of a study carriedout at the end of May 2020 by the United
Nations Development Program (UNDP) and
GRI, the survey on the impact of COVID-19
on Peruvian companies was undertaken. The
results of this survey were extrapolated to theentire MSME sector in order to identify the
economic and financial impacts of the healthcrisis on companies and the consequenteffects on the priorities and challenges in the2030 Agenda.21

In the case of MSMEs, the impact
translated into a greater number ofclosures and job losses, as well as
disruption in production chains and inpayment flows.22
The findings from the survey identified threemost serious problems for MSMEs in the wakeof the crisis:
1. On the workers’ front: high levels of stress,
difficulties in getting paid and a reduction of
productivity due to teleworking.
2. On the clients’ front: decrease in sales anddifficulties in collecting payments.
3. On the suppliers’ front: difficulties withpayments.
Additional findings suggest that companies
in Lima have experienced a greater dropin sales than companies from outside
the capital, despite taking greater action
against the crisis. In addition, while someof the largest companies have been able toredesign and digitize their processes, microenterprises remain the ones that are helping
their communities the most. In this regard,companies that sell to end customers havetaken more measures in the face of the crisis,
for they have adapted their sales channels anddiversified their products and services.
Finally, the study highlights that sustainability
presents a great opportunity to overcome theexisting difficulties imposed by the COVID-19
pandemic, since six out of 10 companies
believe that including sustainability into theirbusiness strategy has helped them beat thecrisis.

20. Proposals against covid-19, Lima Chamber of Commerce. Page 15. Available at: https://www.camaralima.org.pe/
repositorioaps/0/0/par/edicion922/la_camara%20922_final.pdf
21. The results have allowed two things: 1) to build the baseline to monitor the how the crisis has impacted the development and 2)
to propose a way in which companies can build resilience in the face of shocks caused by the crisis, and contribute to the recovery of
progress lost in the achievement of the Sustainable Development Goals.
22. Beyond Recovery: A Look at 2030 from the Peruvian Business Conduct, United Nations Development Program (UNDP). Available
at: https://www.undp.org/content/undp/es/home/librarypage/hiv-aids/beyond-recovery--towards-2030.html

13

Going forward, the role of businesses inrestarting activities will be crucial, regardlessof whether they are micro, small, medium orlarge. According to the document ‘What will the
new normal be after the COVID-19 crisis?’23
prepared by Ernst & Young (EY), there are
five main areas that saw important changes
and that will continue to evolve with restrictive
measures. According to EY, we will see atransformation in our way of living together
and socializing, in taking care of our health, inworking, in our movement and consumption
habits. Some of the examples of thistransformation include the increase in remote
working and the redesign of transportation.
Key to achieving sustainability is adapting tothese changes and staying relevant in thecurrent market.

In these challenging times - not only
economically and socially but also
environmentally - it is essential that MSME
entrepreneurs and their teams are resilient
enough to overcome all kinds of adverse
circumstances caused by the COVID-19
pandemic and, at the same time, identify
the inevitable opportunities that the current
situation presents. Therefore, it is necessary to
opt for a more responsible behavior, consciousof its impacts in facing what is to come in thenext years: an economic recovery that implies
a more sustainable business model, taking into
account both the well-being of society and thatof the planet.

23. “What will the new normal be after the Covid-19 crisis?”, Gilberto Lozano. Available at:https://www.ey.com/es_cr/covid-19/cual-sera-la-nueva-normalidad-a-partir-de-la-crisis-del-covid-19

142

Sustainability as acompetitive advantage
Being competitive is, perhaps, one of the main challenges that
Peruvian MSMEs face. Several of the previously mentioned
difficulties in the Peruvian MSME ecosystem are the barriers thatprevent these companies from ‘distinguishing themselves’ fromtheir main competitors. Why is it important to be competitive?
Because ultimately, it is what allows you to remain current in
the market, offering products and services that are relevant tocustomers and that satisfy their needs in a creative and efficientway, while minimizing risks.
There is a significant opportunity in managing sustainability andcapitalizing on it as a competitive advantage. When MSMEs
manage sustainability strategically, they become more attractive
because they position themselves as responsible organizations,aware of their economic, social and environmental impacts.
They become companies that minimize risks throughout theirvalue chains and enhance their strengths through an efficientmanagement of their organization, both internally and externally.

Sustainability in MSMEs
As we have seen in the previous chapter, the challenges faced
by MSMEs are very diverse. Some of these challenges havebecome even more persistent. Some of the biggest barriers tocompetitiveness are inefficient management and little differentiationin the face of stakeholders.
With existing difficulties for MSMEs to prosper over time, the added
struggles with adequate and efficient management of operations
and the lack of financial capital in a context of informality make thesituation even more critical. MSMEs must seek ways to change
towards a more sustainable model, which can allow them to better
understand their economic, social, and environmental impacts.

15This can be done through the implementationof internal processes that minimize risks fortheir stakeholders, promote cleaner production,enhance the development of their workers andcommunities, and communicate their impacts
and efforts strategically.
When talking about sustainability incompanies, people tend to turn their gaze
towards big enterprises. Perhaps it is because
we are used to seeing them take the lead on
the topic, and communicate their wins more
effectively. However, regardless of their size,
MSMEs generate short, medium and longterm economic, social and environmental
impacts that create shared value for theirrespective stakeholders. The problem isthat many do not carry out their activities
within a framework of sustainability; that is,they embrace a traditional vision for theirbusinesses without being aware of their socialand environmental impacts, and they lose thebenefits that sustainability management could
bring to their organizations.
One component of sustainability is the ability
to sustain oneself over time. Therefore, for
MSMEs to last, they must see sustainability
management as a strategic factor that involves
their entire value chain. This will allow them to
be much more competitive, with direct effects
and concrete benefits both internally andexternally.
Internally, the implementation of a sustainability
strategy can reduce operating costs andgenerate narrow profit margins for MSMEs.
Sustainability management practices range
from increasing the efficiency of lighting
installations to complying with occupational
health and safety laws to striving to eliminate
salary gaps. Even more so, demanding
and supporting strategic partners to do thesame. Such practices might also involveother changes, such as measuring carbon
and water footprint as well as productionwaste, implementing a health and safety
management system at work, and promoting
and implementing programs with local
communities.

Externally, MSMEs can obtain great benefits
from the way they communicate and position
themselves - that is, as companies thatgenerate value while making a positive
impact on society. This, in turn, will help themdifferentiate themselves within the field they
operate. To be successful at this point, it isessential to develop trust and to listen carefully
to what stakeholders have to say.
As we have previously mentioned, one of thegreatest challenges faced by MSMEs in theirsustainability management is limited strategicplanning (including the use of measuringand management tools), which should help
them promote the integration of sustainable
practices for further growth. Within the
Peruvian MSME ecosystem there, too, areseveral barriers to accessing information andsustainability management training, in addition
to low interactions with organizations that could
help promote partnerships and enhance areasof common interest.
Being aware of our positive as well as
negative impacts on economic, social andenvironmental levels, we can take the firststep to turn sustainability into a competitive
advantage. How can MSME demonstrate that
it is sustainable? The answer is simple: with asustainability report.

73% of the world’s largest 250
companies (the G250) use the
GRI Standards/GRI Sustainability
Reporting Standards and 168 policies
in 63 countries and regions reference
or require the GRI Standards.

16

The sustainability report
The sustainability report is a document
addressed to an organization’s stakeholders
that contains, in a very timely and objective
manner, information on the specific actions
and economic, social and environmental
performance of the organization in a calendar
year. In that sense, the GRI Standards havebeen designed for organizations to present
information on their economic, social andenvironmental impacts.
The GRI Standards represent a global
practice to report sustainability management
and performance, which facilitates thecomparability and quality of the information
reported. The Standards are structured in amodular way, divided according to universal
and thematic indicators (economic, social andenvironmental), and are interrelated. By using
the GRI Standards, a complete and balanced
image is projected of the priority issues for an
organization and the related impacts, as wellas the management of these impacts.
Thanks to this, the GRI Standards havebecome the common language used bycompanies in sharing their sustainability
impacts in a transparent manner. For example,
73% of the world’s largest 250 companies(the G250) use the GRI Standards/GRI
Sustainability Reporting Standards and, 168
policies in 63 countries and regions reference
or require the GRI Standards for theirregulations. In the case of Peruvian MSMEs,
more than 1,200 have been trained on the
GRI Standards, resulting in over 800 reports
published. It is also important to mention that,in addition to the final document, the process of
preparing the report leaves a series of lessons
to companies, both external and internal. The
lessons and learnings related to stakeholders
are of great value when designing strategies
and activities for them.
In conclusion, the sustainability report is atool that enables a process of continuous
improvement towards a more sustainablebusiness, responsible for its impacts.

Benefits of the GRI
Sustainability ReportingStandards for MSMEs
Throughout the four years of GRI’s work with
Peruvian MSMEs, the benefits of developing
a sustainability report and its process havebeen segmented into two levels: internal andexternal.
Internal benefits are related to management,
among them we have:•

Vision and strategy definition: many
MSMEs are constantly “putting out fires”
on a day-to-day basis and have a few
opportunities to pause and reflect on the
progress made and where they want to go.

•

Identify strengths and weaknesses:
the results of the report can be easily
evaluated and even compared to thoseof other companies in various sectors or
countries. Thus, they allow us to identify
what is advancing and what aspects
require a change in strategy.

•

Implementation of management
systems: this is due to the fact thatreported issues must be accompanied byStandard 103: Management Approach. This
makes MSMEs analyze the importance of
the issue, its coverage, management andevaluation. The integrated management
system stimulates results as a response
from the management, not luck.

•

Reduction of gaps: company decisionmakers can take the results obtained as abaseline, analyze where they currently are,where they would like to be and what they
have to do to get there.

•

Employee motivation: this is importantbecause people are increasingly looking
to work in companies that focus on morethan just generating profit. Implementing
the sustainability report helps strengthen
the company’s purpose and mission in
the eyes of workers and employees andincrease their motivation.

17•

Strengthening stakeholder relationships:
both internal and external stakeholders need
information from the enterprise in order todevelop strategic relationships based on trust.
Access to information allows for informed
decision-making.

•Communicate what they are already working
on: many companies are already working
on different fronts such as human resources,
marketing or finance. The report allows them toposition everything they are already doing withina sustainability framework and communicate it
to stakeholders.

•Communicate improvements: companies
will have the opportunity to report annuallyand they can communicate year after year
their implemented improvements. This showsrobustness, trust and often resilience, which
improves the relationship with stakeholders.

•Develop a competitive advantage: currently
many MSMEs offer the same price, quality anddelivery time, which makes it very difficult toachieve differentiation. Sustainability may be
the variable that makes them stand out from the
rest.

•

Reach more demanding markets: whether an
MSME wants to reach international markets or
be a big company supplier, sustainability makes
them more attractive and makes them meet highstandards demanded by clients.

•

A common language with large companies:
for MSMEs that are suppliers, the GRI
Sustainability Report helps speak the samelanguage with their client companies. Thisfacilitates the impact evaluation of large
companies and therefore makes MSMEs that
produce the report more attractive to them.

•

Better reputation and greater trust:companies with reports portray an image oftransparency that favors their reputation andgenerates trust among stakeholders.

•Capital attraction: impact management
generates efficiencies which, in turn, reducerisks. Interest rates on loans are related to risk.
The higher the risk, the higher the interest rate.
In addition to this, there are more investors whoare increasingly seeking returns that are not justeconomic they also seek well-managed socialand environmental impacts which the reportaccounts for.

18

The GRI Competitive
Business Program
GRI has been implementing the Competitive
Business Program aimed at MSMEs in
Peru since 2017. The program is designed
to increase the competitiveness of MSMEs
through the identification of their economic,
social and environmental impacts. The
Competitive Business Program is supported
and financed by the Swiss Confederation State
Secretariat for Economic Affairs (SECO) in
five countries: Colombia, Indonesia, Vietnam,
South Africa and Peru.
The implementation of the program in Peru
has taken sustainability reporting from a niche
practice among big companies to a criticaland essential one adopted by companiesof different sizes and sectors around thecountry. Indeed, the number of reports fromMSMEs has strengthened the importance ofreporting and transparency among relevant
representatives of Peruvian society, including
government agencies, corporations ,international organizations and citizens.
During the program’s four years, threefundamental pillars have been developed.
The first was training MSMEs to preparea sustainability report. More than 800
sustainability reports have been published by
568 SMEs from 16 regions. In 2020 alone,
Peru experienced a 25% growth with 408
published reports, despite more than 100
days of mandatory quarantine in the midst of a
global pandemic. Since 2018, more than 1,100
MSMEs have been made aware and trained on
how to write a sustainability report.
The success of the program relied on its
constant adaptation to the needs of the
stakeholders involved and of the beneficiarycompanies. This resulted in the design ofthe “Continuous Improvement Cycle” - aprocess that begins with the measurementof impacts and continues with the publicationof the sustainability report. Subsequently, allcompanies that meet the requirements join
the community of ‘graduates’ of the program,where management and communication of
results are carried out together with partnerorganizations. All this takes place over a year
and is repeated every year. The Continuous
Improvement Cycle will be discussed later inthis chapter.

The community of graduates of theCompetitive Business Program played an
important role in achieving these results,
evidenced by the fact that some of theProgram’s graduates have now been
publishing sustainability reports for the second
and third consecutive year.

More than 800 sustainability reports
have been published by 568 SMEs
from 16 regions. In 2020 alone, Peru
experienced a 25% growth with 408
published reports despite more than
100 days of mandatory quarantine in
the midst of a global pandemic.
During the quarantine, the GRI team, together
with its implementing partners, quickly
migrated to digital training and hosted several
webinars on how to respond to the challenging
health situation we were facing. At the endof the fourth year, a new approach has beentested to help anchor companies capitalize on
their supplier transparency by working closelywith purchasing or logistics teams in a Buyers
Program.
The second pillar focuses on involving the key
players in society to establish private or public
policies that encourage the use of sustainability
report. In this sense, the data collected in thesustainability reports of MSMEs began to besystematized in the fourth year to provide forthe design of public and corporate policies.
This work, in association with UNDP in Peru,
had several valuable contributions. These
include an annex in the Voluntary National
Report to show how big companies and
SMEs are contributing to the Sustainable
Development Goals (SDGs), as well as apublication on the impact of COVID-19 on the
sector and how to ‘build back better’ from it.
The most promising result is an online platform
to measure corporate contributions to the 2050
National Plan and the SDGs. The platform,
called the SDG Corporate Tracker, is currently
open to businesses.

19Finally, the third pillar is based on promoting
the use of the sustainability reports in decisionmaking by key players in society. The two mainusers targeted by the program were university
students and journalists. The initiatives focusedon creating knowledge about the steps tobe taken to involve relevant stakeholders indecision-making using the sustainability reportas the main tool.
Significant efforts have been made in thisregard to raise awareness of university
students and journalists. This was achieved
with the help of program partners, such as theInternational Finance Corporation (IFC) and
CENTRUM PUCP Business School.
Partnerships like these are, and will continue
to be, crucial in driving greater demand forsustainability data.
All in all, in these four years, the GRI
Competitive Business Program in Peru has
obtained important results and will remaincommitted to sharing knowledge andenhancing the growth of Peruvian MSMEs.

Cycle of improvement
One of the success factors of theCompetitive Business Program in Peru
is the implementation of the Continuous
Improvement Cycle. The cyclical executionof the Program managed to organize theactivities and group them by stages, creating a
fluid process for all participants.
The division into stages makes for a morelogical and a simpler process for MSMEs.
Thanks to this cycle it becomes simple, forexample, to designate those responsible for
implementing the Program within the MSME.
In addition, the months that are designatedto each stage make it easier to incorporate
the Program’s activities into daily tasks of any
given organization. In other words, companies
can better organize who and what departments
are responsible for leading the implementationof the Program at each stage. Likewise, theexecution by stages provides flexibility toadjusting to unpredictable circumstances, justas it happened in 2020 with the COVID-19
pandemic.
The following are the stages of theContinuous Improvement Cycle of theCompetitive Business Program:•

Call: with support from implementing
partners and anchor companies of theProgram, GRI launches a call in the firstmonths of the calendar year, inviting
MSMEs to be part of the GRI Competitive
Business Program. Thus, participatingcompanies can be invited as they are
strategic suppliers to large companies,
as can companies who join the program
proactively.

20

Tra
in
in
g
I

The Continuous
Improvement
Cycle

on
gniti
con
Re remonyceentacion
plem
im
t
en

Call

ng
ni

Imp
rov
em

Learning reinforcement based on
results: this stage begins with the
Recognition Ceremony, which is designed
as a space to recognize all the agents thatmade it possible for MSMEs to conclude
their sustainability report. Thus, thereis participation from CEOs of MSMEs,
implementing partners representatives,trainers, and logistics and sustainability
departments of anchor companies. In
some cases, CEOs of anchor companies
also participate. This event also welcomes
MSMEs to the Community of Responsible
Suppliers of the Competitive Business
Program. Then GRI, with support fromlearning partners such as EY Peru and
CENTRUM PUCP, design courses for
implementation improvements focused on
the most reported content by participatingcompanies that year. This is done in orderto delve into practical ways to implement
improvements appropriate for MSMEs.
Participants conclude this stage with aplanning workshop with support from other
GRI expert partners, where they apply what
they have learned from the workshops andpropose new objectives and strategies
for sustainability management within theirorganizations.

Improvement implementation: uponreaching this last stage, companies havealready been empowered in the most
relevant sustainability issues for theirorganizations and will have about fourmonths to focus on their management andimplement improvements with respect totheir next cycle of continuous improvement.
At this stage, GRI and implementing
partners support companies during theprocess. Webinars, virtual courses,
contests and events take place to continue
promoting the use of the GRI reporting
methodology as the main tool for managing
and communicating sustainability impacts.

ort
Rep
on
licati
pub

•

•

Le
ar

Information gathering: the information
gathering stage begins with the trainingof MSMEs and ends with the publicationof the report. GRI trains the implementing
partners so that they can carry out thetraining for MSMEs. Enterprises will have
between a month and a half to two months
to collect the necessary information andwrite their sustainability report. Oncecompleted, companies are invited to
publish their report through their networks
or the GRI Database. In this way, they
contribute to the exercise of transparency
of information. Enterprises are also invited
to strategically communicate their impacts
to their respective stakeholders.

tionmaor erinnf athg•

Each year, the GRI team in Peru evaluates the execution and results of the continuous improvement cycle,
meets with implementing partners, collects suggestions from participants and makes improvements in its
own continuous improvement cycle.

21

3Best practices insustainability in MSMEs as
a result of the report and its
development
This chapter seeks to share the best practices of MSMEs
participating in the GRI Competitive Business Program with respect
to their sustainability management. Each case is related to a GRI
Standard and to at least one of the Sustainable Development
Goals.
The main objective is to present the best practices in an
educational way by identifying the problem that was meant to besolved in terms of sustainability, the implemented strategy, theresults obtained and even specific recommendations from Peruvian
MSMEs.
This chapter is a practical guide that can inspire MSMEs toapproach sustainability as part of organizational strategic
management and a cycle of continuous improvement.

22

Focus
One of the most tangible benefits of writinga sustainability report is that reporting allows
organizations to focus on the most important
aspects, priorities, and material topics for theorganization.
Many of the companies that participate in theCompetitive Businesses Program start theirpath towards sustainability by implementing atool that requires them to identify the crucial
themes to which their organization must direct
their efforts to improve and grow. It is worthhighlighting that focus is useful for companies
at any level of growth (micro, small, medium,or large). Moreover, it responds to a particular
context, meaning that the focus in one
particular year will not necessarily be the samein the next.
It is important for organizations to view thereport as a tool for focus, which reflects their
managerial priorities in terms of economic,
social and environmental impacts, and torealize that these priorities have a substantial
influence on the perceptions and decisions of
their main stakeholders.
Companies that participate in the Program
perceive a clear ‘before’ and ‘after’ in theorganization thanks to the report’s ability toidentify improvement areas and focus theirefforts on aspects that allow them to achieve
positive short and medium-term results.
In what follows, we will share someexamples of Peruvian MSMEs that use
the report as a tool for focus in theirorganizations.

23
BRYSAC
Company Region: Ancash
Company Industry: Maintenance of
hydraulic oil equipment
Number of employees: 20
Contact email:gerencia@brycsac.com
Sustainability Reports: 2018 and 2019
Size: Small
www.brycsac.com.pe

Focus administrative processes
Activity
We are a family-run company with 15 years ofexperience. We are dedicated to naval metal
mechanics services and specialize in the design,
manufacturing, installation and maintenance of
hydraulic oil equipment. We provide the best products
and services to our clients. As part of the commitment to
our work and the quality of our service, we are focusedon continuously improving our internal processes andhuman capital.

Improvement strategy
We implemented a manual of administrative
processes for the whole organization and identified aflow diagram for each process, mapping out our route
procedure from when the client first contacts us. We
do not only work in our workshop, but we also perform
services directly at our client’s location.

The identified problem
or challenge
Our processes were centered on our operations andwe were very efficient, but we lacked an administrative
focus. We relied on a single person to manage all theadministrative processes. We considered this tobe a risk for the organization as this could create
bottlenecks in administrative processes that shouldbe aligned to our operational objectives.

Results
Focusing on the administrative aspect has given us
fluidity in our processes and reduced our invoicing
time by 30%.

The report made us realize the urgency of putting
our administrative processes in order.

Yngrid Chunga
Head of Finance

It is recommended to have a detailed description of every process to not depend solely on one person.

24
MUJERES ECOSOLIDARIAS
Company Region: Arequipa
Company Industry: Recycling
Number of employees: 25
Contact email:informes@mujeresecosolidarias.com
Sustainability Reports: 2017, 2018 and2019
Size: Microwww.mujeresecosolidarias.com

Positioning as strategic partners
Activity
We are an association of female recyclers who
recover waste in the city of Arequipa to reintegrate it
back into industries as raw materials and products,
giving it a second life. We are a team of 25 partners
and entrepreneurs who generate our own income,
improve our own quality of life and that of our families,
and contribute to protecting the planet through theservices we offer.

Improvement strategy
Motivated by our client Caja Arequipa, our organization
started its Sustainability Report with GRI. Our objective
was to meet their expectation of providing socialand environmental indicators and becoming asustainable supplier.
We wrote our own report, enhanced our reach within thereport and invited our own supplier to participate in theCompetitive Businesses Program. Afterwards, we used
the report to consolidate our position as a sustainablesupplier.
We participated in a campaign organized by
HumanizaRSE association to recover a massive volume
of waste. With support from the local press, we convened
the community and were able to clean the whole area of
Mercado Avelino Caceres, collecting one ton of waste
and proving the valuable role of recyclers.

The identified problem
or challenge

The lack of vision of large and iconic companies inconsidering the associations of recyclers as trusted
partners. We wanted to position ourselves as strategic
partners and responsible suppliers for these companies.
A disadvantage in the recycling industry is that there is no
certification (excluding the ISO, which is very expensive)and our organization was looking for an opportunity todifferentiate itself.

Results
Writing the GRI report allowed us to strengthen ourpartnerships with iconic companies like Caja Arequipa
and Scotiabank.
We used the indicators from our corporate collection
route to objectively quantify the socio-environmental
impact of our partnership with Caja Arequipa. The factthat we belong to GRI’s Community of Responsible
Suppliers was a key one during negotiations withthe the Corporate Social Responsibility (CSR)
department. As a result, our organization received adonation of 20 tons of paper in 2019 and 2020, worth
approximately 16,000 Soles.

The report allowed us to enhance our capacity toanalyze, quantify and communicate the impact.

Sergio Olivares
Advisor of Mujeres Ecosolidarias

Identify a strategic company that has developed a CSR policy. Verify that the company prepares a sustainability report andthat there is a partnership opportunity along one of the axes mentioned within their report. Improve and expand your own
report and link its contents to the partnership with the strategic company. Share the results and indicators of the partnershipwith the CSR department so they are aware of them. This was how we were able to build a connection between managerial
operations and the strategic company’s CSR policy.

25
SUBMARINOS ROMÁN ORDOÑEZ
Company Region: Lima
Company Industry: Fishing
Number of employees: 13
Contact email:rsubmarinos@gmail.com
Sustainability Reports: 2018 and 2019
Size: Microwww.romanordonez.com

Comprehensive security, occupational health and environmental policy
The identified problem
or challenge

Activity
Since 1990, we have been developing the field ofsubmarine services by offering our clients a wide array ofservices along the national coastline.
We are a working community trained in technical,
quality, security, health and environmental issues,
and because of this, we can fulfill our objectives inevery project.

Improvement strategy
We reorganized the company structure. To start, we
did a self-evaluation to verify the current percentage ofprocess compliance we had. Once we had identified
which processes had to be standardized, we trained our
employees based on their job profiles.
We focused on quality in every process and hired
specialized personnel to improve the management of
the organization.

We lacked an appropriate distribution of tasks andprocesses among our employees. In previous years ourcompany worked empirically, but thanks to the report
we have begun to organize ourselves.

Results
We were able to optimize the company processes
and have now trained personnel for every process.
We have more control over our work and a quicker
response time in our service. In this way we are able
to fulfill all legal and client requirements.
Furthermore, in October 2020 we published ourIntegrated Occupational Health, Safety and Environment
Policy. In this policy we commit to offering a safe
workspace, and to meet and exceed our clients’
expectations with a focus on quality, while ensuring theprotection of the environment. In this policy we also
commit to abiding by all provisions required by law.

We have to grow together with our employees. If
the company grows, we all grow.

Roman Ordoñez Espinoza
CEO

Creating management tools with advice from specialist partners helps us avoid employee turnover and systematizes the hiring andevaluation processes.

26

Measurement
One of the most important characteristics ofthe sustainability report is that each of theStandards allows the company to measurespecific content about their economic, socialand environmental impacts.
The sustainability report with the GRI
methodology responds to the 10 Principles
of Report Writing. These principles help
companies define what content to include in
their report and how to do so.
Some of these Principles respond directly tomeasurements which the report allows for:•

Completeness: There should be sufficient
information in the report to reflect the
key economic, social and environmental
impacts and allow any interested parties toevaluate the performance of the company
during a set period of time.

•

Accuracy: The information provided
should be sufficiently precise and detailed
to allow interested parties to evaluate theperformance of the organization.

•

Balance: The information must reflect
the negative and positive aspects of theorganization’s performance to allow for an
overall performance evaluation.

Many of the companies participating in
the Competitive Businesses Program,
especially the micro-enterprises, consider
the sustainability report to be an impartial
and objective starting tool when measuring
the company in economic, social, andenvironmental terms.
For these companies, the report represents
a starting point for creating a management
and implementation system of company-wide
improvements.
In what follows, we will share someexamples of Peruvian MSMEs that use
the report as a measurement tool in theirorganizations.

27
MANNA
Company Region: Lima
Company Industry: Fishing
Number of employees: 8
Contact email:mannasac@hotmail.com
Size: Small

How to measure the quality of the company processes?
Activity
We have more than 10 years of experience in theindustrial sector. We provide cleaning services to thefishing industry, sandblasting, and painting of ships
and metallic structures. One of our main commitments
is client satisfaction. Our mission is to provide surface
treatment and protection of surfaces through the highest
quality sandblasting and paiting, compliying with safety
regulations and taking care of the enviroment.

Improvement strategy
The first action we took was to assign personnel to leadon the measurement of procedures and quality. We also
wrote the organization’s quality policy and set goals
that reflected the overall direction and strategy of theorganization.
We were also more aware of the clients’ expectations
regarding legal requirements and relevant regulations.
We focused on assigning relevant roles andresponsibilities to employees within the organization,
empowering them to manage quality. Finally, we
implemented quality awareness programs at every
level of the organization.

The identified problem
or challenge
We did not have a proper task distribution among our
employees. In previous years the company had anempirical approach, thanks to the report we were
better off with our internal organization.

Results
We identified risks and opportunities that could haveaffected the conformity of the products and services theorganization offers.
We were able to increase our clients’ satisfaction,
optimizing processes and costs along the way.
Moreover, we now actively promote, supported by certain
processes, a culture of continuous improvement.

The quality of the service we strive to provide willbe the biggest gift our clients receive, as we havehighly knowledgeable personnel to offer clients theresults they expect.

Omar Nishijima
COO

By implementing quality management, the personnel feels more involved in guaranteeing it. Also, the improvement of processes
results in higher client satisfaction.

28
COOP. FRUTOS DEL ANDE
Company Region: Ayacucho
Company Industry: Agriculture
Number of employees: 10
Contact email:e.almeyda@furtosdelande.com
Sustainability Reports: 2018 and 2019
Size: Microwww.frutosdelande.com

Measurement tool for recruiting, selecting and managing personnel
Activity
We are 130 partners located in the inter-Andean
valleys of three regions: Ayacucho, Apurimac and
Huancavelica. We grow, process and commercializeorganically certified Andean grains, beans and fruits.
In our processing plant, we add value to the products ofAndean biodiversity. Thanks to the short supply chains,
we can connect with consumers in produce fairs andorganic shops. Our exports abide by fair trade regulations
and promote a delicious and healthy diet.

Improvement strategy
Apart from increasing the minimum wage, we
decided to implement efficient measurement tools forhiring personnel.
In partnership with the consulting company Meridiano,
we created a measurement tool for the selection process.
We defined the candidate profiles based on our needs
and wrote evaluation forms for each candidate. These
forms allow us to make a comparative analysis, which
optimizes our selection process.

The creation of measurement tools for personnel
management gives the ability to identify personnel withexpectations more aligned with that of the organization
and reduces turnover. It also allows for a better
distribution of responsibilities and personnel evaluationon the basis of impartial criteria.

Constant Piscart
Partner and advisor on capacity building

The identified problem
or challenge
Our Cooperative is growing in sales and we havethe challenge of consolidating our team. We saw
experienced employees leave because of higher wage
expectations. We understand the need to start byincreasing the minimum wage, but we also wanted tohave an ideal tool to strengthen our personnel policy.

Results
This new tool gives us the ability to precisely define
the profile we are looking for, and is the baseline for
evaluating if our personnel’s performance aligns with
the Cooperative’s mission based on impartial andquantifiable indicators. Our team consists of eight
employees and four interns. The eight employees
include the CEO, three productive technicians, threeplant operators, and an administrative and accounting
assistant. We have recently hired two more employees.
We used our new forms and profiles to fill these
positions. We have distributed the interns in specificareas based on the profiles used in the selection
process. The goal of this tool is for us to not generate
an additional load of documents. It is a multifunctional
measurement and management tool. It is used forthe hiring and evaluation of candidates. The tool has
quantifiable indicators which are useful for eliminatingbias. The profiles are used as management tools when
designing contracts. They are based on what the workentails and are a type of organizational memoir. Overall,this measurement and management tool makes all of ourpersonnel management processes more impartial.

By implementing quality management, the personnel feels more involved in guaranteeing it. Also, the improvement of processes
results in higher client satisfaction.

29

Management
One of the most evident benefits of writinga sustainability report is that it serves asa management tool for organizations. The
majority of companies participating in GRI’s
Competitive Businesses Program use thereport as a tool for:••

Closing managerial gaps: Withmeasurement in place, they can use thereport’s results as a baseline for making
better decisions for improving the content
of the report.
Identifying their strengths: Somecompanies have been implementing goodsustainability practices before writing thereport. However, they had not previously
identified these practices as ‘sustainable’.
The report showcases their positive
contributions in terms of economic, socialand environmental impacts.

•

Building a culture of transparency
and trust: The simple fact of writinga sustainability report enhances thetrust of employees in the company. The
report should not be used as a tool to
only showcase the ‘good’ aspects ofthe company. It should be a transparent
document that shows the strengths of theorganization but also the areas in whichit commits to improve. Many of the cases
presented in this study state that writing asustainability report increases employee
productivity, as they now feel happier,heard by the company and motivated tosee their company commit to continuous
improvement.

•

Speeding up internal communication for
decision-making: Writing a report requires
constant participation and communication
between company areas. For many areas,
this is the first time they have worked
together on a joint project. After writing thereport, new communication channels andworking relationships are formed between
areas and communication is improved.
Internal communication channels promotetrust and can speed up decision-making,benefiting everyone in the organization.

GRI’s methodology has a specific Standard
called 103: Management Approach thatallows organizations to delve deeper into
the management of each content theme andinform as to why the content is important forthe organization, its scope and coverage, how
it is tangible for the management, and how it
is evaluated. 103: Management Approach is arequired standard that must be covered every
time a material topic is reported on. For GRI, it
is imperative to manage the measured results.
Consider the report a tool for building a cultureof continuous improvement in the organization.
A culture where areas for improvement are
seen as opportunities to build a better future
for all of the organization’s members andrespective stakeholders.
In what follows, we will share someexamples of Peruvian MSMEs that use
the report as a management tool in theirorganizations.

30
ESTTILO DIGITAL
Company Region: Lima
Company Industry: Printing
Number of employees: 16
Contact email:cmoranted@esttilodigitalsa.com
Sustainability Reports: 2017, 2018 and2019
Size: Small
www.esttilodigitalsa.com/

Managing a culture of quality and teamwork
The identified problem
or challenge

Activity
Our operations focus on printing a variety of graphic
material for financial sector institutions and theiragencies. We perform printing services for all typesof paper, formats, envelopes, folders and advertisingmaterial.

Improvement strategy

Working with different financial entities means we mustdeliver nationally, accounting for each agency’s individual
requests. Our job consists of efficiently fulfilling eachrequest, yet there are peaks of high demand that are
stressful for our employees. We identified issues inrelation to attention to detail in our programmeddeliveries. We even received a formal complaint froman agency. Resending any deliveries due to an error
means we incur additional freight costs that often exceed
the product’s value. We agreed that no other complaints
should occur ever again.

Results

We suggested implementing productivity bonuses
for each successful delivery and for exceeding thedaily production batches. The personnel took the
initiative well and were given a rechargeable food card.
Each month this card was recharged based on the
results achieved.

We lowered complaints to under 1%. We improved
our productivity levels by reducing the time taken toattend requests (during some weeks, we even gained
half a day of productivity). Moreover, we generated
an average benefit of an 8% increase in salaries of
employees who participated in the initiative. Now
we have an error tracing system we use before every
delivery. If employees identify an error before delivery,
they note it and resolve it as a team. This process
promotes teamwork to solve difficulties and avoids client
complaints.

Teamwork is the key to improvement. Cashincentives can be a starting point to improve processes
and/or products, but afterward, it depends on the teamand their motivation to improve.

Carlos MoranteCEO

By implementing quality management, the personnel feels more involved in guaranteeing it. Also, the improvement of processes
results in higher client satisfaction.

31
MATRIXCONSULTING
Company Region: Lima
Company Industry: Professional
services
Number of employees: 18
Contact email:Daniela.oscorima@matrixinventarios.com

Sustainability Reports: 2017, 2018 and2019
Size: Medium
www.matrixinventarios.com

Seeking recognition
Activity
Since 2012, we offer stock ledger, fixed asset
inventory, appraisals, outsourcing and consulting
services. We perform each activity with precision,
efficiency, and have experience in different economic
sectors, both public and private.

Improvement strategy
Our main goal was to build trust with our
stakeholders. Our first step was to strengthen thecompany’s internal management, implementing
improvements resulting from our sustainability report.
Afterwards, we invested in an audit of our process
management and underwent the Triple ISO Certification.
Given our improvement in internal management, we
decided to apply for the best workplace or sustainability
practice award recognition, such as the renowned
Distinction in Social Responsibility of Peru 2021. We also
applied for other awards, such as the best workplace
practices for employee training, external consultancies,
and local supplier hiring.

The identified problem
or challenge

We understood that there was a gap in being publicly
recognized or awarded for our work and brand. We
realized that our competitors were getting recognition,
which brought them more clients and helped establish abigger brand presence. We decided to take action using
the tools at our disposal.

Results
As a result of our internal management, we minimized
the costs and time of our processes, raised theawareness of our employees, acquired more customers,
strengthened corporate trust, and generated more
employment opportunities with local suppliers.
In 2019, we were awarded the Socially Responsible
Company of Peru Distinction 2021 in the SME
category.

As a result of our award recognitions, we haveacquired new clients and maintained the loyalty of our
professional service suppliers that allow us to increase
our sales.

Daniela Oscorima
Human Capital Specialist SIG CSR and Compliance

We recommend integrating stakeholders and contributing to generating employment opportunities that allow a sustainable
development of the communities where you work

32

Communication
One of the biggest benefits of sustainability
reporting is the ability to communicate therelevant economic, social, and environmental
impacts to stakeholders.
In the Competitive Businesses Program, wealways highlight two important components:
By utilizing the GRI methodology, we
implement a common reporting language,used in over 160 countries globally.
For this reason, it is an importantpresentation card for organizations,particularly for large companies that havebeen implementing the GRI Standards formany years.
A key recommendation for companies is to
be strategic when communicating the report’s
results and findings to stakeholders. In otherwords:•Have the full report published on a digitalplatform, be it the company website or GRI
Database.

•

Identify the proper communication
channels to share the report’s findings witheach stakeholder. Not all stakeholders
share the same communication channels.

•

If possible, send ad hoc information toeach stakeholder. This ensures that thepertinent information for each stakeholder
is internalized.

•

Generate intentional spaces to share thereport’s information with every stakeholder.
Despite it being public on a digital platform,
it is important to provide the necessary
space to officially share it and encourage
people to learn about its findings.

•

Share the next steps: the report’s
communication must emphasize that this is
only the first step for improvement and, if
possible, share an action plan of how thisreport’s valuable information will be utilized.

In the Competitive Businesses Program, we
have concrete examples of how being strategic
when communicating the report’s information
has allowed many organizations to be
regarded by their stakeholders as responsible
companies in terms of their impact. This has
resulted in some companies expanding theirportfolio and increasing economic growth.
In what follows are examples of
Peruvian MSMEs that use the report as acommunication tool.

33
MUJERES ECOSOLIDARIAS
Company Region: Arequipa
Company Industry: Recycling
Number of employees: 25
Contact email:informes@mujeresecosolidarias.com
Sustainability Reports: 2017, 2018 and2019
Size: Microwww.mujeresecosolidarias.com

Communication for building partnerships
Activity
We are an association of female recyclers who
recover waste in the city of Arequipa to reintegrate it
back into industries as raw materials and products,
giving it a second life. We are a team of 25 partners
and entrepreneurs who generate our own income,
improve our own quality of life and that of our families,
and contribute to protecting the planet through theservices we offer.

Improvement strategy
In the second semester of 2017, we decided to write oursustainability report as a tool and presentation card forpotential clients.
We identified established companies with a corporatesocial responsibility team and organized four trips to
Lima with the association’s directors in 2018 and 2019.
Our sustainability report helped differentiate us during
meetings with the corporate social responsibility officers,
and the GRI internationally recognized methodology gave
us credibility.
At the end of 2019, we had implemented recycling
programs with 22 companies (not taking their various
agencies into account), out of which eight are large
companies: Caja Arequipa, Scotiabank, Sodimac,
Maestro, La Positiva, Metro, Hotel La Cuesta de
Cayma y Conauto.

The identified problem
or challenge

In 2017, we launched our solid waste collection
service for companies. Initially, we focused on
implementing the collection logistics and met with
operations executives in companies to offer them ourcollection services. Despite having made interesting
contacts, we could not maintain the service due to alack of interest and company support. The executives
viewed our service as more work for themselves andnot as a strategic service. Faced with huge amounts
of solid waste that companies produce and do nottake advantage of in Arequipa, we knew there was anopportunity to be grasped.

Results
Strengthening partnerships with eight large companies
played a decisive role in increasing the number ofcompanies interested in our services. In 2019, Mujeres
Ecosolidarias collected 588 tons of waste – 88 tons morethan the previous year – which re-entered the productive
chain as raw materials to manufacture new products,
avoiding more natural resource extraction.
Iconic companies like Scotiabank, Caja Arequipa,
and La Positiva included our organization’s workin their own sustainability reports. This exposure
valued the role of recyclers and positioned Mujeres
Ecosolidarias’ work at a corporate level.
The report allowed us to identify growth
opportunities, breaking through entry barriers. We used
the report as a ‘presentation card’ to directly connect
with leaders in corporate social responsibility areas.

Sergio Olivares
Advisor to Mujeres Ecosolidarias

Start writing a sustainability policy through the sustainability report. Use the report as a differentiator when looking forcontacts and meetings with corporate social responsibility areas. Disseminate the sustainability report’s impact, but also
connect it with your partner companies’ reports.

34
SIAGRO EXPORT
Company Region: Lima
Company Industry: Food & Beverage
Number of employees: 26
Contact email:tradedep@siagroexport.com
Sustainability Reports: 2018 and 2019
Size: Small
www.siagroexport.com

Managing internal communication to better attend our clients
Activity
We are a Peruvian company that, since 2009, hasbeen dedicated to adding value to products fromthe Peruvian mountains and jungles by growing,transforming and improving them. From our wide
variety of products, camu camu, lucuma, cacao, purple
corn and aguaymanto are the ones that stand out.

Improvement strategy
With roundtable discussions and motivational
speeches, we raised awareness and involved theofficers and managers of each company area so that,with transparency and total openness to opinions andsuggestions, they could facilitate and incentivize thecommunication amongst the company personnel.

The identified problem
or challenge
At the start of 2020, there was an increase ininternational demand for our products and services.
The increase in our production volume started to create
bottlenecks that prolonged the processing time anddelayed our deliveries. Some of the issues identified
were the limited storage capacity in our plant, out-ofdate scheduling, and a lack of communication between
company areas.
We coordinated a series of meetings among all the areas
involved to solve the issues we had identified. A common
agenda was created for this: 1) inform and explain
the current situation, 2) identify problems and suggest
solutions, 3) apply and monitor changes, 4) evaluate theperformance after making improvements.
Since poor internal communication was one of the maincauses detected, we suggested different improvement
strategies.

Results
The results were positive. There is a tangible
improvement in the work environment, commitment,
motivation, and productivity of the personnel. One of theindicators of this gradual change are improvements in
product shipping: the delivery time shortened from an
initial 45 days to 30 days, with up-to-date information andtools to communicate the order’s state to our clients. By
taking these actions, we completed our main goal:
our client’s satisfaction and loyalty.

Our success is based on our experience,
knowledge and commitment to our clients and toourselves.

Peter Marcelo Romero
CEOIn order to improve management processes, first, you must identify problems that affect them, acknowledge the work of employees,
and listen to their opinions.

35
SOLDADURAS Y REPARACIONESVICTOR
Company Region: Callao
Company Industry: Fishing
Number of employees: 50
Contact email:ligia_acosta@solrevisac.com
Sustainability Reports: 2018 and 2019
Size: Small

Communicating the sustainability report’s results
Activity
We are a company dedicated to the manufacturing,
maintenance, and repair of naval ships andspeedboats. We have qualified personnel to givehigh-quality services in metal mechanic pieces andequipment.

Improvement strategy
After writing our sustainability report, we decided touse it as a communication tool. We created a company
brochure and designed promotional material. We gave it
a new look and used content from the sustainability
report. We booked meetings with fishing companies
to introduce our company and show them our work,
including the sustainability report.

The identified problem
or challenge
Despite having 10 years in the industry and two importantclients (the two largest fishing companies in the country),
we generally had few clients. We needed more exposurein the fishing industry to attract new clients. We wanted
to build a good corporate image and be seen as acompany that fulfills commitments with suppliers as wellas internally.

Results
We used the sustainability report as a communication
tool, and that helped us reinvent and strenghten ourimage and reputation. Thanks to the report, we were alsoable to book meetings with fishing companies as initiallyplanned.

The report made it easier for us to identify things
we were failing at.

Carlos Panana
CEO

Taking advantage of the sustainability report’s valuable information and not hesitating to share it with stakeholders is important. It is
more effective to create promotional material using the report as the base.

36

GRI 205: Anti-corruption 2016•

Reviewing their processes and activities
and identifying production risks

The GRI 205: Anti-corruption Standard is oneof the most referenced in the Competitive
Business Program. It was created to manage
and communicate issues and impacts related
to anti-corruption. This Standard presents three
topic-specific disclosures:•

Creating and publishing their anticorruption policies.

•

Creating a notification channel aroundincidents and/or alleged corruption cases in
the company.

•

Disclosure 205-1: Operations assessed
for risks related to corruption.

•

Training their personnel on how to reduce
corruption risks.

•Disclosure 205-2: Communication andtraining about anti-corruption policies andprocedures.

•

Communicating the company’s anticorruption policy with their employees andstrategic partners – like their suppliers.

•

Disclosure 205-3: Confirmed incidents ofcorruption and actions taken.

103-3: How do they evaluate theperformance of anti-corruption
management? The MSMEs evaluate theiranti-corruption management performance bycommunicating their anti-corruption policy andthe reported incidents in the calendar year.
They also measure the number of trained
employees or the hours of anti-corruption
training invested.

Managing anti-corruption permits, identifying
and managing conflicts of interest of
employees as well as stakeholders in relation
to organization’s activities, services or products
is one of the remits of the Standard. It also
reflects the organization’s actions taken tobattle corruption in our country.

The Management Approach
All the themed Standards were designed to
be used jointly with the GRI 103: Management
Approach to provide exhaustive content
about organizational impacts. These contents
include:103-1: Why is it important to report aboutanti-corruption management? It is one of
the most referenced Standards in the Program
since the majority of companies identify
corruption as one of the main barriers to thecountry’s economic growth, and to their own.
103-2: How do MSMEs manage anticorruption? The companies in the Program
tend to make their efforts tangible in thefollowing way:

In what follows, we will share someexamples of Peruvian MSMEs managing
anti-corruption in their organizations.

37
DAYRO CONRATISTASCompany Region: La Libertad
Company Industry: Construction
Number of employees: 38
Contact email:info@dayrosrl.com
Sustainability Reports: 2017, 2018 and2019
Size: Small
www.dayrosrl.com

Generating trust through transparency
Activity
We are a construction company with 12 years ofexperience in the industry. We provide high-quality
and timely services for the planning, design, andexecution of construction projects.

Improvement strategy
As a result of the sustainability report, we created,
communicated, and raised awareness about our code of
ethics. We also adopted the best practices in corporate
governance. In this way, we were able to position
ourselves as a company that fights corruption.
In 2017, we implemented the Best Governance
Code, promoting actions to strengthen corporate
governance and our actions under the highest
transparency standards.
During the preparation and dissemination of theCode of Conduct and Ethics, and to prevent any
infringements, we provided training and wrote a newversion of the document with acceptance of the roles andresponsibilities of our employees.
We understood the importance of sharing our Code of
Ethics and decided to do so by email.

The identified problem
or challenge

Corruption is an issue that affects trust, especially inthe construction sector. In 2018, the sector was hit
hard. With our 10+ years of experience in the business,
we felt an urgency to share our best practices withothers.

Results
We have a 0% margin of fines for non-compliancewith Peruvian legislation. 75% of our associates
are familiar with and feel supported by the Code of
Ethics.

By understanding the importance of measuring andcommunicating the organization’s actions, theimprovements in the different GRI standards haveallowed us to have a work plan that considers the
economic, social, and environmental aspects.

Daysi Ponce Esquivel
CEOFirst, identify the problem (in our case, the number of sales dropped significantly). Choose a simple work methodology. Choose awork team (we recommend the leaders of each area). Set dates and assign responsibilities. Finally, compile lessons learned, andapply continuous improvements.

38
FUNDICIÓN FERROSA
Company Region: Lima
Company Industry: Metal mechanics
Number of employees: 105
Contact email:kzacarias@fundicionferrosa.com.pe
Sustainability Reports: 2018 and 2019
Size: Large
www.fundicionferrosa.com.pe

Anti-corruption management with short, medium and long-term
benefits.
Activity
We are a closed stock company with half a century ofexperience in iron and stainless steel manufacturing,refractory steels, and gray and nodular irons.
Our dynamic development is evident in the growth of ourexports. In 2015, only 3% of our sales were exported,and by 2019, this had risen to 35%.

Improvement strategy
After reviewing other companies’ reports and considering
our own risk of becoming involved in fraudulent
operations, we saw it necessary to take action to protect
our clients and ourselves. We got certified with BASC
guaranteeing the traceability of our exports, and ourquality system with ISO9001.

The identified problem
or challenge
In writing the reports, we became aware of what othercompanies in the same industry in Peru and othercountries were doing. This helped us understand theimportance of creating a specific anti-corruption
policy.

Results
We have an annual certification that entails an
exhaustive evaluation of the correct development ofour procedures. This not only guarantees that we aredoing things right but it’s also a competitive advantage fornational and international clients who constantly look formore security in the traceability of their purchases.

The transition was less complicated for us because
we were all focused on the short and long-term
benefits, which can be perceived in our employees’
optimism.

Karen Zacarías
Innovation and Entrepreneurship Coordinator

Any improvement at the company must be communicated at all levels, with awareness-raising workshops and talks to ensure
everyone values the importance of these improvements and they are not considered as extra work or expenditure.

39

Response to COVID-19
2020 was a challenging year for Peruvian
MSMEs. Many MSMEs were not able tosurvive this challenging juncture despite theemergency measures implemented by thegovernment that were focused on increasing
solvency and facilitating access to credit.
However, we were able to see the creative andbrave response of the companies participatingin GRI’s Competitive Business Program, inthe face of this challenging situation. Let us
not forget that a sustainability report is an
important tool for management that speeds up
decision-making within the organization.
After writing a sustainability report,
different areas within a company become
interconnected. The transparency of
information within the company generates
employee trust in the organization and creates
constant channels of communication that
did not exist beforehand. It is a useful tool
to respond to crises and highly uncertain
situations.
In what follows we share examples of how
the sustainability report serves as a valuable
information tool for efficient and timely
decision-making in crises and uncertainties.

40
CORP. VICTORIANO GARCÍACOLLANTES
Company Region: Lima
Company Industry: Fishing
Number of employees: 12
Contact email:mgarcia@vgcelectric.com.pe
Sustainability Reports: 2018 and 2019
Size: Small

How to care for the health of my employees and clients?
Activity
We are a family company with over 40 years ofexperience in the maintenance and optimization ofindustrial and naval electrical installations.

Improvement strategy
After analyzing a few options, we decided to havepersonnel stay in our facilities during the lockdown
months to avoid using daily transportation which could
lead to contagion. We created a security protocol
based on our report’s goal, which was thendisseminated and accepted by our personnel.
We implemented private rooms and expanded thedining hall to maintain employees in house and prevent
contagion.

The identified problem
or challenge
In mid-March of 2020, the world entered a lockdown due
to COVID-19. Luckily, during that same month, the fishingsector resumed activities with protocols and permissions
authorized by law.
We needed to have a protocol that could guarantee
our personnel’s health,but we were insure about
how to start and the actions we could take to prevent
contagion. We started with our sustainability reportgoal focused on physical protection and health of
our personnel and the commitment that we have tothem and their families.
We also knew about the great effort our clients put into
caring for the crew that would sail on the different fishingships, so we could not allow ourselves to be the cause ofcontagion of the personnel on board.

Results
Despite the serious sanitary crisis, our actions
avoided the contagion of 100% of our personnel
during the whole of the 2020 fishing season. We
preserved and cared for our personnel’s health, thepersonnel on board the clients’ vessels, and that of ourfamilies. We raised awareness among our personnel on
the need to abide by our protocol, offering favorable living
conditions in our workshop.

Our personnel felt safe doing their work thanks to
the measures taken, feeling motivated and engaged
with the company, valuing our commitment to theirhealth and safety and that of their families.

Victoriano García Collantes
CEO

Establish goals and commitments to your staff. Ensure compliance with the protocol by our workers.

41
PIXED
Company Region: Lima
Company Industry: Engineering andTechnology
Number of employees: 14
Contact email:ssaavedra@pixedcorp.com
Sustainability Reports: 2018 and 2019
Size: Micro
www.pixedcorp.com

Responding to market needs, especially in times of crisis
Activity
We are a company dedicated to the developmentof inclusive medical technologies since 2015. We
manufacture devices and prosthetics with 3D printing,making them accessible to everyone.
For us, people are the priority, which is why wemake sure to offer an integral attention to medical,
psychological, and biomechanical aspects of our product.
All of our services include psychological support for ourclients during their adaptation phase to the device.

Improvement strategy
We decided to do market research to discover the newneeds of our existing and prospective clients. This
information allowed us to refocus the organization. We
decided to design and launch biosecurity equipmentusing our experience with 3D technology. We
created a new line of products like atomizers, facial
protectors, mask hangers, and facial extensors.
As a result of the outcomes obtained through oursustainability reports, we realized that almost 90% of ourclient interactions could be done online.

The identified problem
or challenge
We were dedicated exclusively to manufacturing medical
prosthetics (biomechanical devices) for people with aphysical disability.
Due to COVID-19, a new challenge arose: theimpossibility of attending our clients as we wereaccustomed to due to the lockdown. Furthermore, ourcore service was no longer a priority for many clients.

Results
Thanks to our quick response rate during the
COVID-19 crisis, we obtained the following results:• Increased our income sixfold to S/ 460,000.
• Thanks to the sales of the new line of products wewere able to acquire new machinery for the company.
• We generated more jobs. We hired three new people
during the pandemic’s initial months, two of whichbecame permanent staff members.
• We carried out support and donation campaigns ofbiosecurity products to more than 20 hospitals ona national level. We carried out one campaign inpartnership with the organization Juguete Pendiente
and two with the company Sura.

The elaboration of our sustainability reports helped
us get to know our market and enabled us to learn
about our weaknesses and strengths in order to have a
speedy reaction to the situation brought upon by
COVID-19. We also established new partnerships dueto the trust generated by carrying out a sustainability
report.

Stephany Saavedra
General Manager at Pixed S.A.C

When facing a crisis or the unknown (such as a pandemic), it’s necessary to identify opportunities, carry out a market study, focus
and be willing to do a turn or have a quick response to minimize risk.

42

GRI 301: Materials 2016103-2: How do MSMEs manage theirmaterials?

Materials Standard 301 was designed by GRI
to manage and communicate the impactsof the management of materials used by anorganization to stakeholders, this Standard
presents three topic-specific disclosures:•

Measuring the amount of renewable andnon-renewable materials that they include
in their production.

•

Identifying the types of materials and theirquantity in their packing or packaging•

Identifying the potential for reuse or
recycling of each of these materials.

Disclosure 301-1: Materials used by weight orvolume.
Disclosure 301-2: Recycled input materials
used.
Disclosure 301-3: Reclaimed products andtheir packaging materials.
This Standard allows the organization to
include the total calculation of materials,
defined as: raw materials, necessary forthe production process; semi-manufactured
articles or pieces that are not part of the raw
materials but are part of the final product;
and packaging materials, including paper,
cardboard, and plastics. It is also important
to note that the company can report whether
these materials are obtained internally or
obtained through suppliers.

The Management Approach
Each topic-specific Standard includes
disclosures specific to that topic, and isdesigned to be used together with universal
Standard GRI 103: Management Approach, toreport the management approach for the topic.
For this Standard that includes:103-1: Why is it important to report onmaterials management? Reporting on
the materials used in production allows theorganization to objectively measure thequantity of materials, the type (renewable or
non-renewable), which ones have the potential
to be recycled or recovered and, finally,measure their negative or positive impact on
the environment.

103-3: How do you evaluate yourperformance in materials management?
MSMEs evaluate their performance on the
management of their materials by reporting theincrease or decrease in kilograms or tons ofeach material, classifying them by type, usesin the production process and / or potential forreuse or recycling.
In the following section, we share someexamples of Peruvian MSMEs that aremanaging the materials used in theirproducts.

43

CinziaTORTAS Y DETALLES CINZIA
Company Region: Lima
Company Industry: Food andbeverages
Number of employees: 18
Contact email:cmarjoriefp74@gmail.com
Sustainability Reports: 2019
Size: Micro

Be aware of what type of materials we use in our businesses
The identified problem
or challenge

Activity
We are a company dedicated to the production
and sales of traditional desserts and special cakesfrom Lima. Our commitment is to bring back to the
new generation, the flavors and customs of yesterday’s
desserts, some of which have been lost over time. We
hope to continue growing to improve the quality of life of
our workers, contributing to the cultural and gastronomic
development of the country.

We were not aware of the environmental impact wewere having through the sale of our products. We
identified that we had been using the polypropylenematerial (technopor) for a long time to deliver our
products. We also identified an excessive use ofphotocopies and printing of documents which we thengave to our clients.

Improvement strategy
When we made our first sustainability report, we
identified that we should improve some aspects
to contribute to the sustainability of our country.
We decided to implement eco-friendly packaging for
all our products, as well as the use of paper bags andbiodegradable bags. Additionally, we encourage workers
to use bicycles as transportation to get to work.
We have implemented the use of emails for document
delivery, as well as the use of electronic ballots to
reduce the use of paper. We opted to reduce energy
consumption for lighting by using energy efficient lightbulbs (LED). We encourage workers to switch off lights
and make the most of natural light. We rearranged theoffice, relocating desks and making better use of naturallight.

Results
Our stakeholders, especially our clients, have verified
the changes applied to improve our company and our
positive impact on the environment.
We are at 49% of reaching our goal and we hope
to be able to reduce the use of non-eco-friendly
materials to nearly 100%.

As a company we hope to continue improving inorder to contribute and influence the sustainable
development of our country.

Marjorie Fernández
General Manager

Identify and evaluate each of your improvements. Start with the most feasible.

44
VANECO
Company Region: Lima
Company Industry: Importations
Number of employees: 18
Contact email:daranda@vaneco.com.pe
Sustainability Reports: 2018 and 2019
Size: Medium
www.vaneco.com.pe

Material use habits to protect the environment
Activity
We are 30 year-old Peruvian company, dedicated tothe import and commercialization of valves, fittingsand industrial tubes.

Improvement strategy
We implemented a new measure for recycling and reuseof production materials. In addition, we carry out internal
communication campaigns promoting an appropriate useof resources.
Reuse of materials was applied primarily with paper,
pallets (we molded them to the size of the orders in orderto reuse them) and the containers of some cleaningproducts. We implemented a purchasing process
whereby, if possible, we would buy replacement cleaningproducts instead of new bottles.
Through communication campaigns, we promoted
the responsible use of water and electricity, raisingawareness among workers, seeking to minimize theunnecessary use. The message focused on promoting
the use of what was necessary and suggested thefollowing simple steps: before leaving the office, verify
that no electrical appliances are left on; do not take long
showers at the end of the day, among others.

The identified problem
or challenge

We identified that some direct or indirect production
materials were not being used to their maximum.
We found ourselves accumulating waste excessively.
Our workers were not aware of the potential of reuse of
production materials.

Results
We have managed to change the habits of our workers in
relation to the reuse of our indirect work materials, on top
of applying environmentally friendly practices. Water andlight usage has been reduced and staff have taken
home the acquired new practices.

We have turned these practices into environmental
policies for the company, generating new habits.

David Aranda
MarketingInternal communication campaigns result in very positive outcomes. Constant communication is necessary.

45

GRI 302: Energy 2016
Energy Standard 302 is one of the mostreported standards in the Competitive
Business Program. It was created to manage
and communicate the impacts related
to organization’s energy consumption
management to stakeholders.

•Disclosure 302-1: Energy consumption
within the organization.

When reporting about its energy consumption,an organization can show to its stakeholders
if it complies with the minimum requirements
set by Peruvian law in relation to that sector’senergy consumption.

The Management Approach
Each topic-specific Standard includes
disclosures specific to that topic, and isdesigned to be used together with universal
Standard GRI 103: Management Approach, toreport the management approach for the topic.
For this Standard that includes:103- 1 Why is it important to report onenergy consumption management? Thisis one of the most reported on environmental
parameters by MSMEs due to it being themost familiar. The greatest benefit thatcompanies identify when reporting their energy
consumption is that it brings out the mostsignificant savings opportunities, even if they
are non-manufacturing companies.
103-2: How do MSMEs manage energy
consumption? The companies in the Program
tend to focus their efforts on:•

Measuring their energy consumption on aregular basis.

•

Identifying opportunities to reduce
consumption in plants and offices.

•

Informing staff about the impacts of energy
consumption on the environment.

103-3: How do you evaluate yourperformance in managing energy
consumption? MSMEs evaluate theirperformance by monitoring and measuring
energy consumption on a monthly basis. Manyof the companies keep track of the economic
savings generated after the implementation of
improvements.
In the following section, we share examplesof Peruvian MSMEs which that managing
their energy consumption.

46
OXAMANÍA L&B BOTTGER
Company Region: Pasco
Company Industry: Food andBeverages
Number of employees: 5
Contact email:victor@oxamania.pe
Sustainability Reports: 2019
Size: Micro
www.oxamania.pe

Invest to save and take care of the environment
Activity
We are a Peruvian company that, among its main
activities, is dedicated to the processing of spicy
peppers in various forms, such as cream, chutney,
pickles and jams. In addition, we work with other fruits
from the province of Oxapampa.

Improvement strategy
We decided to make an effort and invest in
machinery to reduce production times and, at thesame time, reduce energy costs. We purchased two
gas kettles of 150 liters each. The kettles have a builtin thermometer, which allows us to ensure a faster andsafer packaging process.

The identified problem
or challenge

We experienced that our production capacity was
exceeded by the demand for our products. We had
to optimize the production process with new machinery,but, at the same time, not increase production costs too
much, especially in energy.
Furthermore, the Oxapampa area frequently experiences
power outages that make production times difficult or
longer.

Results
By using gas, we reduce our costs and also reduce
the risk brought on by the lack of reliability of energy
provision in the area. Our production capacity has
increased by more than 40%.

The savings are significant when using cooking
vats, in addition to that we were able to avoid being
affected by electrical power failures of the area.

Víctor Paz
General Manager

Try to improve your critical processes and identify opportunities to save on energy consumption.

47
SOLUCIONES TÉCNICAS HYRCompany Region: Callao
Company Industry: Equipment
maintenance
Number of employees: 10
Contact email:Soluciones_tecnicashr@hotmail.com
Sustainability Reports: 2018 and 2019
Size: Small

Giving a second life to our shrinkage
Activity
We are a family run business focused on providing
preventive and corrective maintenance of hydraulicsystems and marine, mining and industrial
refrigeration.

Improvement strategy
We monitor and check monthly energy consumption
through a format designed to focus on measuring waterand electricity consumption. The format compares
monthly consumption and electricity and/or water
bills. In this way we can see if what we pay for these
services is decreasing.
At the same time, we carry out monthly verifications andinspections of electrical equipment and tools. In addition,
we changed the lights in the workshop and those of theoffice for LED lights and gradually replaced the pipes andaccessories prone to cause water leaks.

The identified problem
or challenge
We identified that we had an excessive consumption ofwater and electricity within the company’s facilities.

Results
Even in the peak months of the fishing industry, we havemanaged to reduce electricity consumption by 15%.

It was a major change, but having the process
clearly outlined in the datasheets allowed us to see theprogress of the change brought by the LED lights.

Julio Caballero
Head of Logistics and Projects

We recommend designing and setting up office and workshop spaces in such a way that natural light can be used for as longas possible.

48

GRI 306: Waste 2020
Standard 306 was designed to manage
and inform stakeholders about the impacts
associated with an organization’s waste
management. Since 2020, this Standard has
focused significantly on circular economy. It
has five disclosures, of which the most used by
MSMEs are:•Disclosure 306-1: Waste generation andsignificant waste-related impacts•

Disclosure 306-3: Waste generated.

This Standard is based on the premise that anorganization can generate waste throughout its
value chain, not only on the production stage.
Furthermore, it requires organizations to share
the total weight metrics of all of its residues
and show the methodologies used to calculate
this.

The Management Approach
Each topic-specific Standard includes
disclosures specific to that topic, and isdesigned to be used together with universal
Standard GRI 103: Management Approach, toreport the management approach for the topic.
For this Standard that includes:103- 1 Why is it important to report on
waste management? Most of the MSMEs
reporting their impacts on this front for asecond or third consecutive year, identify waste
management as: environmentally relevant;as an opportunity to generate savings; andas a way to generate new partnerships withorganizations which promote recycling or reuseof waste.

103-2: How do MSMEs manage their waste?
The companies in the Program tend to focus
their efforts on:•

Measuring the amount of waste that they
produce throughout their value chain.

•

Identifying opportunities to reuse waste.

•

Raising awareness among their staff onreuse of materials.

•

Evaluating the design of their processes
and / or products to reduce waste.

•

Using waste as raw materials for new
products (circular economy principle).

•

Creating alliances with institutions that
promote healthy waste management or
recycling.

103-3: How do you evaluate yourperformance in waste management?
MSMEs evaluate their performance on waste
management by measuring the number ofhours of awareness raising provided to theirstaff on recycling or reuse; the amount ofwaste reduced; the number of partnerships
developed with other organizations with which
to manage their waste; and the additional
income generated by the sale of products
created from the reused waste.
In the following section, we share someexamples of Peruvian MSMEs managing
their waste and incorporating circular
economy principles in their organizations.

49
CORPORACIÓN OTTANER
Company Region: Lima
Company Industry: Fashion and textile
Number of employees: 6
Contact email:contact@ottanercorp.com
Sustainability Reports: 2018 and 2019
Size: Micro
www.ottanercorp.com
www.sophieottaner.com

Measuring for better management
Activity
We are a Peruvian company founded in 2014.
We make handmade fashion accessories withsustainable materials such as natural fibers (raffia,
chambira, toquilla straw, organic cotton, organic banana
stem fiber) and ecological fibers (wool and alpaca fiber,with which we prepare the felt)

Improvement strategy
The stored waste had a negative impact on theenvironment. Thanks to the sustainability report, in 2018
we made a quantitative evaluation of the amount ofwaste we produced. In 2019, we set out to put our waste
to use and improve those numbers.
We decided to analyze our product design process,starting with the calculation which determined
how much material we needed and the wastethat was produced. Then we designed secondary
products that could be made with this waste, in eachproduction batch. We trained our partner artisans sothat they could make these new products.

The identified problem
or challenge

The leftover material or waste from the productionof our goods wasn’t being quantified, we would
just focus on maximizing the use of our materials.
This had an environmental impact because we were
producing waste which we were not reusing. In addition,
this waste consumed useful physical space. This leftovermaterial represented a negative economic impact as it
was a cost in the production process.

Results
We were able to make these changes thanks to theevidence from the sustainability report. We elaborated
new designs, we were able to free up space in thewarehouse and include new products in our catalog forthe artisans to work on.
Quantitatively, we reduced our waste by 40% and wecommercialized the new products, increasing ourrevenues by 5%.

The consequences of climate change lead us tobelieve that the economy of the future must be circularand must have a low carbon footprint. To do this, wemust continue to work efficiently, starting with theuse of sustainable materials and addressing the endof life of our products, minimizing the environmental
impact thanks to circularity and thus building asustainable future.

Marilú Livia
General Mananger

Take some time to analyze, within your company, where waste is generated and what is done with it. Talk to workers and, together,find solutions. A habit of continuous improvement must be created in which we don’t just see a benefit for ourselves but also
contributes to keeping our larger home clean, our planet.

50
LAS ISABELAS
Company Region: Ancash
Company Industry: Food andbeverages
Number of employees: 15
Contact email:stephx279@gmail.com
Sustainability Reports: 2019
Size: Micro

Circular economy in our company
Activity
We are a company dedicated to the production
and sale of natural products. Now for two years, wehave been promoting a business model, which seeks
yo anticipate and responsibly manage occupationalrisks and sustainable development challenges, aswell as identify new opportunities that arise from goodmanagement.

Improvement strategy
We identified the opportunity to use the propertiesof coffee grinds to create a product that was in highdemand. We decided to use the fine grind of coffee
to create 13 varieties of artisan soaps. The soaps are
100% handmade and are made with coconut oil andnatural glycerin. Some additional ingredients are passion
fruit, turmeric, thyme, honey, cocoa, activated charcoal,
rice, coconut, and aloe vera.

The identified problem
or challenge

Our main product, a coffee substitute (mixture ofbarley, wheat and roasted and ground beans), leaves
residues or very fine grind. This grind was previously
discarded after processing the grains. However,grinding these cereals is useful for making soap, since,in addition to having antioxidant properties (vitamins B2
and B5), it acts as a gentle exfoliant for the skin, able toeliminate toxins (dry skin). It also has another advantage:
after experiencing the benefits of soaps made by grind,customers tend to use them more often. In addition, we
have launched an eucalyptus soap with antibacterial
properties, ideal for the COVID-19 pandemic. Our
products are primarily focus on children who are
constantly playing, throwing themselves on the floor, etc.

Results
Given the current situation brought by the COVID-19
pandemic, there is a high demand for soaps, especiallyhandmade soaps, which tend to be less harmful for theskin. Our handmade soaps have been very well received
by the public thanks to their properties. They do notcontain any type of chemical and are beneficial for theskin. We were able to sell more than S/ 4,000 in soaps.
We always receive good comments from customers, andwe get new ones thanks to recommendations.

The sustainability report provides an opportunity forthe more people to get to know us, and Las Isabelas isable to advance thanks to our efforts.

Isabel Cigarróstegui
General Mananger

Be aware of the opportunities that surround us and use tools for innovation. Identify what clients are looking for and delve into these
insights.

51
SOLUCIONES PREDIALES
Company Region: Lima
Company Industry: Construction
Number of employees: 13
Contact email:lguerrero@solucionesprediales.com
Sustainability Reports: 2018 and 2019
Size: Small
www.solucionesprediales.com

Partnerships to positively impact the environment
The identified problem
or challenge

Activity
We are dedicated to obtaining permits and accesses
for the construction, expansion or repowering of powertransmission lines in the construction sector. We design,
remodel and construct buildings at all levels andcarry out all kinds of studies on environmental
issues.

Inappropriate use of office supplies, their rapid
disposal, and lack of recycling awareness. Throughthe implementation of the Management Approach,
we identified these weaknesses. Consequently, we
decided to formalize partnerships with two NGOs
that provide support on this matter and raise
environmental awareness. These two organizations
are: Aldeas Infantiles SOS Perú and Tierra y Ser.

Improvement strategy
We have implemented properly marked containers
for recycling paper, bottles and plastic caps in theadministration’s office. In addition, we inform all of ourworkers about the importance of recycling and end-use of
office supplies. The main strategies implemented include:• Training and campaigns throughout the year
organized via email and made visible on thecompany’s bulletin board.
• New policy for double-sided reuse of paper andeventual recycling.
• Partnerships with organizations that apply circular
economy principles - able to transform waste into
beneficial products.

Results
We raised awareness on this matter with 100% of
our workers. As a result, they adopted paper reuse,and plastic and cartridges recycling. We also included
the families of the workers in this process as many of thecontainers and plastic lids brought to us by our workers
were from their homes.

Our responsibility and awareness of recycling are
carried out from our workplace to our home in anenvironmentally circular way.

Luz Guerrero Lazo

Good Communication with the organization is key to achieving the objective.

52

GRI 403: Occupational Healthand Safety 2018103-2: How do MSMEs manage the healthand safety of workers? The companies in the
Program tend to focus their efforts on:Standard 403 on Health and Safety at Workis designed to inform stakeholders about the
impacts related to the management of thehealth and safety of workers. This Standard
presents ten disclosures. Those most reported
are:•Ensuring compliance with the standards set
by law.

•

Evaluating the risks of all processes basedon potential impacts to health and safety ofworkers.

•

Implementing health and safety systems at
work.

•

Carrying out training or education programs
for workers on health and safety issues at
work.

•

Obtaining additional certifications in healthand safety at work.

•

Disclosure 403-1: Occupational healthand safety management system.

•

Disclosure 403-2: Hazard identification,risk assessment, and incident investigation.

•

Disclosure 403-8: Workers coveredby an occupational health and safety
management system.

Occupational health and safety management
systems are an effective method tocontinuously manage and eliminate hazards
and minimize risks. These systems usually
respond to a continuous improvement cycle
where the results are used to implement
improvements in the risks identified in relation
to health and safety of the organization.

The Management Approach
Each topic-specific Standard includes
disclosures specific to that topic, and isdesigned to be used together with universal
Standard GRI 103: Management Approach, toreport the management approach for the topic.
For this Standard that includes:103- 1 Why is it important to report on
health and safety at work? This is one of
the most reported contents. Most companies
identify the management of health and safety
in their organizations as fundamental.

103-3: How do you evaluate yourperformance in occupational health andsafety management? MSMEs evaluate
their performance by indicators that show adecrease or increase in incidents, accidents
and fatalities. They also do it through thenumber of training programs and awarenessraising campaigns given to workers on healthand safety issues at work.
In the following section, we share someexamples of Peruvian MSMEs managing
health and safety at work in theirorganizations.

53
IMPEMAR GROUP
Company Region: Lima
Company Industry: Distribution andstorage
Number of employees: 1197
Contact email:kchihuantito@impemargroup.pe
Sustainability Reports: 2018 and 2019
Size: Large
www.impemargroup.pe

Vive Sano Program
Activity
We are a company that stores, distributes andcommercializes ‘Arca Continental Lindley’ productsin Lima, in Norte Chico and in Norte Grande. We
have been operating for 20 years. We provide ourin compliance complying with quality, safety, andenvironmental standards.

Improvement strategy
We committed those with BMI of over 30 toparticipate in the Vive Sano program, which consistsof encouraging physical activity and healthy nutrition
among our workers. For example, before heading out
on the road, drivers and delivery assistants perform
dance choreography or exercise routines. In addition, we
facilitate talks from Oncosalud (cancer insurance) andnutrition clinics. We also invite families of the workers
to be part of this program through a WhatsApp groupin which we share nutritional information and videos of
the progress of our workers doing their physical activity
with their family members. Families also attend virtual
trainings. Every fortnight, our workers are weighted, and
we offer them a piece of fruit.

The identified problem
or challenge

Our COVID-19 prevention plan helped us identify
that the majority of our product transport workers
were vulnerable due to obesity. We identified that outof 1,197 workers, 206 had a BMI greater than 30. That
accounts for 17% of our workers as being at risk. Our
workers were not familiar with the notion of healthy living
until the pandemic hit.

Results
To date, we have managed to reduce the percentageof workers with a high BMI from 17% to 12%. In
this process, the families of the workers who began toexercise together benefited from the initiative. This way
we promote the health of our workers and also family
unity through sports and health. Our goal is to reduce thenumber of workers with a high BMI to 10% by the end of
this year.

The preparation of the sustainability report helped
the organization a lot, since it guided us in mapping theannual results and based on them, develop actionplans. It also developed the commitment of leaders andmanagers with whom this initiative was being
implemented.

Edwin Chihuantito
Author’s position: Co-Founder of Impemar

To achieve positive results the implementation of a process to follow is necessary. The following process is the one we followed:
1. Identification: staff were weighed to identify which workers were vulnerable to COVID-19. 2. Action plan: consisted of distributing
responsibilities, drawing up a schedule, and communicating the Vive Sano program at a national level. 3. Measuring and control:
every 15 days our workers are weighted, are given fruit and are in constant communication via WhatsApp with family members
which are part of this program.

54
OCA GLOBAL
Company Region: Lima
Company Industry: Inspection andcontrol
Number of employees: 486
Contact email:oscar.mora@ocaglobal.com
Sustainability Reports: 2019
Size: Large
www.ocaglobal.com/es/peru

Everyone takes care of everyone
Activity
We are OCA Calidad Medio Ambiente y Seguridaddel Perú S.A.C. Since 2017 we have been providing
assistance services for investment projects andproject operations in the sectors of power, renewableenergy, oil and gas, mining, construction andindustry.

Improvement strategy
To solve this problem, we designed the campaign#Todoscuidamosdetodos (everyone takes care ofeveryone). This awareness campaign consists of
informative conversations about the importance ofcomplying with the use of PPE.
These campaigns are accompanied with an incentives
initiative for workers who comply with the proper use ofprotective equipment.
This campaign was carried out in conjunction with ourclient Enel Peru and is still ongoing. This awarenessraising involved the managers of the company. We
made weekly visits to the crew. Managers knew theirneeds first-hand, and workers perceived the company’scommitment to their safety. We include families of theoperations workers in the training so that they also learn
about the importance of the use of safety equipment.
We record videos of the workers’ families, encouraging
them to use PPE and take care of themselves. During
the pandemic, a digital campaign was launched with theslogan ‘Now more than ever #Todoscuidamosdetodos’.
The visits carried out by the management were now done
virtually, carrying out the same activities, ranging fromsmall tests to sharing spaces.

The identified problem
or challenge

Despite the risk posed by the work we do in the
power sector, we noticed that our workers were
struggling to fulfill the requirement of obligatory use
of Personal Protective Equipment (PPE).
We identified consecutive non-compliances and ageneral lack of motivation in regards to its use. This
posed a significant risk to the health and safety of ourworkers. We realized that we had to raise awareness andensure they adopted the measures of the daily training
sessions.

Results
Thanks to our campaign, the use of PPE increased
by approximately 95% and the number of incidents
decreased by 90% in the last six months. Our workers
continue to realize that equipment can save their lives.
Thanks to these measures, we have a score of almost
100 in terms of safety with our main client, Enel.

We continue to raise awareness; we have beenencouraging them to become aware that PPE is a
resource that we have to protect their lives.

Óscar Mora
Chief SHQ

It is important to raise awareness of workers, but also to accompany them in establishing the habit, as well as recognizing theireffort, providing incentives to motivate them and achieve our goal.

55
DISTRIBUIDORA PACI
Company Region: Lima
Company Industry: Logistics anddistribution
Number of employees: 679
Contact email:informes@paci.pe
Sustainability Reports: 2018 and 2019
Size: Large
www.paci.pe

I take care of myself and my community!
Activity
We are authorized distributors of ‘Arca Continental
Lindley’, with 23 years of experience in thecommercialization and distribution of carbonatedand non-carbonated beverages in a territory thatcurrently covers 16 districts of Metropolitan Lima.
Our operations take place in the districts of SouthLima, Mala and Cañete, serving approximately 24,000
clients.

Improvement strategy
A change was implemented in the Customer Service
Protocol, modifying our distribution process. In thisway, we began to leave the product at the customer’sdoor, staying at a distance of two meters. Thismeasure was welcomed by our clients, as it signals
care towards them and towards our workers. We
explained to our clients why it was necessary to involve
them in this measure, raising awareness and working
as a team. Our dispatch staff made videos explaining
the new delivery process, sharing them with clients.
To those who did not have smartphones, information
cards were distributed. The sales area was in chargeof disseminating and making customers aware of the
new steps of safe distribution and the importanceof everyone’s safety. 100% of our sales managers
participated in this and our sales teams contributed
significantly to the deployment of this initiative. The
delivery staff informed customers in a friendly manner,
about the importance of taking care of each other so thatdeliveries could carry on safely.

The identified problem
or challenge

Due to the state of emergency brought by the
COVID-19 pandemic, it was vital to maintain a social
distancing with our customers and the public ingeneral to avoid contagion of our workers andbuyers. Our processes consisted of entering thestore, and the warehouse, collecting the bottles andleaving with the purchased products. During the stateof emergency, and despite the fact that we took all
the sanitary measures, we identified the need to raiseawareness of our clients and integrate them into oursafety processes so that they would become aware ofthem.

Results
Our clients have a better perception of our delivery
and sales service. Quantitatively, our sales continue
to meet commercial goals, meaning that they were notaffected by the state of emergency. Although we changed
the service protocol and required more customer
participation, this did not affect sales or orders.

Given the circumstances, we seek to take care of
our clients throughout our service processes and, atthe same time, take care of ourselves.

Natali Ninacondor
IMS supervisor

The affinity between our clients and our sales force was taken advantage of so that the protocol was well received under the slogan‘I take care of myself and my community!’

56
M. TEMOCHE
Company Region: Callao
Company Industry: Equipment
maintenance
Number of employees: 11
Contact email:gear2313@hotmail.com
Sustainability Reports: 2018 and 2019
Size: Micro

Our Health and Safety system at work
Activity
We are a Peruvian company with 5 years ofexperience, specialized in manufacturing, repairingand maintaining equipment, pipes and valves. We
repair tanks, fishing vessels and naval structures. We
also change plates and weld HDPE pipes.

Improvement strategy

The identified problem
or challenge
When formalizing the company, we failed to establish
an occupational health and safety management system.
Although we have not experienced any accidents,
we could have avoided certain incidents with proper
management.

Results

Thanks to the Competitive Business Program,
we identified the need to urgently implement the
Occupational Health and Safety Management System.
We have been trained in accordance with legal
requirements and have created the Occupational
Health and Safety (OHS) supervisor role.
We constantly evaluate our company’s OHS risks andhave implemented an incident and accident registration
system, as well as a record of the state of our PersonalProtective Equipment (PPE). During the COVID-19
pandemic, we applied the protocols stipulated by the
Ministry of Health.
Writing the report helped us realize what we were
missing. We are very grateful to the Competitive
Business Program. If employees are able to see thatthe company is concerned for their safety, then they
will feel more motivated. We must commit to thewell-being of our employees and ensure their safety.
We must commit to the well-being of the naturalenvironment and identify what improvements to carryout. Finally, we must commit to continually improving
the company.

Most importantly, the employees’ trust in the company
has improved. Implementing the Occupational Healthand Safety Management System not only allowed us toevaluate our operations, but it enhanced communication
between the company and its employees.
Employees now diligently report the status of their PPE.
Issues are communicated on time and new equipment isrequested as soon as it’s needed. This reduces the riskof incidents and accidents.
Thanks to this enhanced trust, the accuracy of ourstatistics on incidents and accidents has improved.
Although we have had no accidents this year, the event
reporting process is now more detailed and accurate.
Workers now provide more information and feel morecommitted to their work. Hence, their efficiency and thequality of their work has improved.

Miguel TemocheCEO

My advice is to start with the GRI Sustainability Report. It helped us evaluate our company and identify required step-by-step
improvements. I recommend evaluating the activities a company carries out, what these must legally comply with, and theobligations that are yet to be fulfilled.

57

GRI 404: Training and
Education 2016
The 404 Training and Education Standard isdesigned to inform stakeholders about the
impacts related to training of workers within
an organization. This Standard presents three
disclosures:•

Disclosure 404-1: Average hours of
training per year per employee.

•

Disclosure 404-2: Programs for upgrading
employee skills and transition assistanceprograms.

•

Disclosure 404-3: Percentage of
employees receiving regular performanceand career development reviews.

Measuring the training and skill level of theiremployees allows organizations to plan whatskills and knowledge are required for themto obtain better results within the company.
Having more qualified workers enhances theorganization’s human capital and contributes
to their satisfaction and motivation, which is
directly related to their performance.

The Management Approach
Each topic-specific Standard includes
disclosures specific to that topic, and isdesigned to be used together with universal
Standard GRI 103: Management Approach, toreport the management approach for the topic.
For this Standard that includes:103-1 Why is it important to report on
Training and Education? Most of thecompanies in the Program make great efforts
to train their personnel. The report helps themget organized and measure the impact of theirefforts.

103-2: How is it that MSMEs manage theTraining and Education of their workers?

•

Identifying new training topics relevant toworkers and their performance.

•

Scheduling structured training andeducation programs throughout the year.

103-3: How do you evaluate yourperformance in Training and Education?
MSMEs use the following indicators tomeasure their performance: 1. The numberof hours provided per worker on external andinternal training; 2. The number of programs
or workshops provided at every level of theorganization.
Here are some examples of Peruvian
MSMEs implementing training andeducation initiatives in their organizations.

58
MATRIXCONSULTING
Company Region: Lima
Company Industry: Professional
services
Number of employees: 18
Contact email:daniela.oscorima@matrixinventarios.com

Sustainability Reports: 2017, 2018 and2019
Size: Medium
www.matrixinventarios.com

Matrix School
Activity
Since 2012, we offer an efficient and precise service
in stock inventory, inventory of fixed assets,
appraisals, outsourcing and consulting. We haveexperience working with the public and private sectors.

Improvement strategy
We managed to finance workshops, diplomas, courses
and specializations for our personnel as a recognition
for their effort and commitment. We then implemented
a training program called Matrix School to cover theeducational needs of specific positions. Training hours
were considered as part of the work schedule.
To increase our staff’s time availability, the company
enabled remot work (before the pandemic) andflexible work schedules, not affecting salaries, toallow for family time or education activities.
We also obtained a Triple ISO Certification that allowed
us to better manage our processes and strategic
decisions on personnel training issues. The personnel
received specific training on quality standards, worksafety, and environmental and health issues.

The identified problem
or challenge

Our workers told us that they required more time to
devote to their studies or their family (90% of ourworkers have between one to three children).

Results
The Matrix School program trained 100% of
employees with computer skills and inventory
software. This improved the productivity of our workers
and increased their commitment to the company. Nine
workers in administrative or operational roles benefited
from flexible schedules and the possibility of working
remotely.
By adapting schedules to personal and professional
needs, we have managed to improve our work
environment and strengthen our team with better trained,
proactive and productive workers.

By concentrating on training our staff, both the
productivity of the company and the work environment
have improved.

Daniela Oscorima
Human Capitan, IMS, CSR and Compliance specialist

When the needs of our employees and their obligations to the company are not compatible, we must evaluate our financial options
and implement agreements based on trust and empathy.

59
SGP BUSINESS
Company Region: Ancash and Lima
Company Industry: Services
Number of employees: 200
Contact email:cchavez@sgp.com.pe
Sustainability Reports: 2018 and 2019
Size: Medium

Educate ourselves to appreciate and take care of the environment.
Activity
We are dedicated to providing outsourcing services
focused on product receipt, transfer, storing and dispatchof finished products for direct and indirect humanconsumption. The company operates under Law No
29245, which regulates outsourcing services.

Improvement strategy
We decided to focus on awareness raising and on
educating our staff on basic environmental topics. We
held workshops focused on the importance of caring forthe environment and the environmental commitments
undertaken by our company.
Two programs were implemented, the ‘Creationof a culture of care for the environment forour employees’ and the ‘Awareness raising on
environmental matters’. These educational programs
are necessary foundations for the fulfilment of any
other initiatives aimed at reducing our negative
impacts on the environment.

The identified problem
or challenge

The main environmental issues identified were
not related to pollution, since the impact of ourservices is minimal. We did, however, identify a lack ofknowledge and commitment of our workers on the matter.

Results
By the end of 2019, 100% of our personnel were trainedon environmental awareness. Although our workers did
not undergo evaluations, there was enough evidence for
their improvement during on-site activities.
Our workers reduced electricity and water consumption,
separated waste correctly, and in general, decreased
their use of resources and increased reuse. The
company undertook preventive measures to avoid
pollution, such as regular vehicle maintenance toreduce CO2 emissions.

Involve your staff in management to get the desired
results. Awareness lasts a lifetime.

Claudia Chávez
OHSE (Occupational Health, Safety and Environment)
Coordinator

The company will not improve if its policies and commitments are not adopted by the staff. The first step to obtaining the desired
results is to establish a continuous training schedule.

60

GRI 405: Diversity and Equal
Opportunity 2016
Standard 405, Diversity and Equal Opportunity,
is designed to inform stakeholders on
the management of diversity within theorganization. This Standard has twodisclosures:•

Disclosure 405-1: Diversity of governancebodies and employees.

•

Disclosure 405-2: Ratio of basic salaryand remuneration of women to men.

This standard allows organizations to identify
diversity indicators used in their measuringsystems that are relevant to their sustainability
reports.
The disclosures provide quantitative dataon diversity in organizations and can beused to make comparisons with industry
or regional standards. It also helps assess
important challenges on different levels of
the organization (from governing bodies toworkers).

The Management Approach
Each topic-specific Standard includes
disclosures specific to that topic, and isdesigned to be used together with universal
Standard GRI 103: Management Approach, toreport the management approach for the topic.
For this Standard that includes:103- 1 Why is it important to report on thediversity of the company? The companies in
the program state that the report helped themassess the relevance of this issue within theirorganization. They were also informed about
Peruvian laws regarding diversity and equality.

103-2: How do MSMEs manage diversity intheir organizations?

•

Developing an equal opportunities policy.

•

Reviewing the minimum legal requirements
regarding diversity in Peru.

•

Reviewing their selection or recruitment
processes to avoid bias.

•

Reviewing their salary policies.

•

Carrying out awareness programs
for workers on diversity and equal
opportunities.

103-3: How do you evaluate yourperformance in diversity and equal
opportunity? The main indicators measured
by companies to evaluate diversity and equal
opportunity are the number of workers per
gender, the number of processes reviewed
to avoid gender bias, the number of training
sessions on equal opportunities and diversity,
among others.
Here are some examples of Peruvian
MSMEs managing diversity and equal
opportunities within their organizations.

61
CONTRUREDES
Company Region: Lima
Company Industry: Engineering
Number of employees: 2200
Contact email:diana.rojas@construredes.net
Sustainability Reports: 2018 and 2019
Size: Largewww.construredes.net

Embrace diversity in all its forms.
Activity
We are a civil and mechanical engineering company
which carries out projects in the following sectors:
natural gas, power, water, fiber and communications.
In 2016, we pioneered the development of natural gas
infrastructure in Peru’s northern region. Our company
was established in 2008 and has actively contributed tothe massive growth of the natural gas sector in Peru.

Improvement strategy
Prior to writing the report, our company promoted
gender diversity. This was a challenge because of thedominance of male professionals in our sector, but wemanaged to train three female natural gas installers anddesigned their career paths within the organization. This
was a pioneering change at the time within the industry in
Peru, and we are now proud to have a female supervisor
amongst our workforce.
We also promoted hiring Venezuelan immigrants withexperience in the sector under the same conditions
as other workers. After writing the report, we realizedthat both actions were important contributions todiversity management in the company. Therefore, we
decided to proactively communicate them.
Once we presented the report, we formed a gendercommittee to promote equal opportunities. The
committee has carried out campaigns oriented at our
staff, to prevent street harassment, gender violence atwork and at home.
We also reviewed our salary ranges to verify that there
were no gender disparities.
In our Huaraz operation, we provided occupational healthand safety workshops in Quechua to promote linguistic
diversity.

The identified problem
or challenge
As a result of our sustainability report, we identified that
our staff is diverse in terms of nationality, geographic
location, age, lifestyle, language and gender. However,
we realized that we could further our staff’s
awareness regarding gender issues and equal
opportunities.

Results
100% of our job profiles were evaluated to avoid bias.
100% of our workers attended awareness raising genderequality workshops. 100% of our foreign personnel are
hired following the measures stated by Peruvian law.
Finally, 100% of our workers with Quechua as their first
language have received the occupational health andsafety workshops in Quechua.

Today we can say with great pride, that ourcompany is diverse and that this broadens our culture.
We are taking small steps that are bringing satisfying
results, such as the female employee who started hercareer with us as a Natural Gas installer and is now a
Field Supervisor.

María Claudia Donado
CEO

Apply continuous improvement processes aligned with the values of the organization. See diversity not only in gender but in age,geographic location, culture, etc.

62
FRUTOS DEL ANDE
Company Region: Ayacucho
Company Industry: Agricultural
Number of employees: 10
Contact email:e.almeyda@frutosdelande.com
Sustainability Reports: 2018 and 2019
Size: Microwww.frutosdelande.com

Equality in leadership
Activity
We are a group of 130 partners located in the Andean
valleys of Ayacucho, Apurímac and Huancavelica. We
grow, process, and sell Andean grains, vegetables
and fruits with organic produce certification. We add
value to a range of biodiverse Andean products
in our Transformation Plant. We reach consumers
at producer fairs and organic product shops. Our
exports are based on fair trade, and our products
promote a rich and healthy diet.

Improvement strategy
We decided to seek help from the contacts in the GRI
Competitive Business Alumni Network. With the helpof the Gender Lab consultancy, we created a simple
self-diagnosis tool called ‘Seven Gender Spheres’to better understand the gender gaps that existed in
our association. We learned to use the instrument
and carried out the diagnosis. Our results were rather
insufficient (12 points amongst the 22 indicators, with
11 indicators achieving scores of zero). This instrument
enabled us to define this sensitive challenge in an
objective manner and motivated us to implement the
Cooperative’s Gender Committee which is responsible
for training future candidates for the Board of Directors.

The identified problem
or challenge
Despite our advances on the gender equality front, suchas the role of women in our commercial processes, theappointment of female leaders within the communities wework in, and having a female representation within thetechnical team, we were still unable to appoint a female
representative in our Board of Directors.
This is due to the low number of women in the
agricultural sector and the biases against womenwhen proposing candidates. We had to involve
women in institutional decision-making. This was
also an opportunity to improve the reputation of ourfemale farmers amongst our network of rural partnerorganizations.

Results
Creating the gender equality diagnosis instrument inalliance with the Gender Lab helped us identify thegaps in the organization on different levels through asimple analysis.
This analysis demonstrated that gender equality is arelevant strategic challenge. The initiative, driven by thesustainability report, helped us reflect on our organizationand strengthen the Gender Committee by establishingclearer objectives.

The report propelled us to conduct an analysis ofsensitive subjects in order to become an exemplary
sustainable company - both internally and externally.

Edwin Almeyda Ochoa
Manager

Identify a partner. Elaborate practical tools that consider the different dimensions of the problem and that allow progress to bemeasured objectively. After the awareness raising phase and the self-diagnosis, it’s fundamental to align the challenges – orthe objectives identified through the application of the instrument - with the institutional priorities of the company to ensure thesupport of senior managers, as well as the assignment of the necessary resources.

63

GRI 413: Local Communities
2016
Standard 413 for Local Communities informs
stakeholders about the impacts, expectations
and interests of the organizations’ nearby
communities. This Standard has twodisclosures:•

Disclosure 413-1: Operations withlocal community engagement, impact
assessments, and development programs.

•

Disclosure 413-2: Operations withsignificant actual and potential negative
impacts on local communities.

Two key elements in managing impacts on
local communities are assessment andplanning, aimed to better understand thecurrent and potential impacts. Assessment
and planning should also involve the local
communities, to understand their expectations
and needs.
Many other elements can be incorporated into
local community engagement and development
programs as well as impact assessments.
Companies reporting on this Standard identify
which elements have been consistently applied
across the organization with regards to theircommunity. Organizations are expected to
anticipate and avoid negative impacts on local
communities.

The Management Approach
Each topic-specific Standard includes
disclosures specific to that topic, and isdesigned to be used together with universal
Standard GRI 103: Management Approach, toreport the management approach for the topic.
For this Standard that includes:103-1 Why is it important to report on
local communities? Most of the Program’s
companies emphasize the importance ofworking together with local communities tomaintain a relationship with strategic partners.
103-2: How do MSMEs manage theirrelationship with the community? The
companies in the Program present examples
such as:•Programs designed for the community toactively participate in activities of positive
impact for the locality, promoted by thecompany.

•

Capacity and skills reinforcement programs
on a specific topic of interest to thecommunity and the company.

103-3: How do you evaluate thisrelationship? Companies usually present
the results of satisfaction surveys within thecommunities or simply the number of programs
implemented in the communities as indicators.
Here are some examples of Peruvian
MSMEs managing their relationship withthe local communities surrounding theirorganizations.

64
EL CHAMPAL
Company Region: Lima
Company Industry: Hospitality andconsulting
Number of employees: 3
Contact email:informes@elchampal.com
Sustainability Reports: 2019
Size: Microwww.elchampal.com

A human, comprehensive and sustainable development program
Activity
We are mainly dedicated to providing lodging
services, but because sustainability is at the coreof our business, we also offer sustainability consulting,training, and research services.

Improvement strategy
We wanted to connect education with the local art
and culture, and with nature, to promote holistic childdevelopment. We decided to design and implement anarts and culture program, in French, for the children of
the public schools of Cocachacra.
We used art to instill values such as self-esteem
and community work. With support from the French
Embassy and Alliance Française, we have opened
two libraries with books in French in the two local
public schools.

The identified problem
or challenge

In the community in which we are located,
Cocachacra, there are large social gaps regarding
access to basic services such as public health,drinking water, food and education. Regarding
the latter, basic education does not proactively fostera connection with the local culture of Cocachacra.
Furthermore, there is a lack of opportunities for children
to develop artistic-emotional skills.

Results
More than 200 children from Cocachacra know some
French and are familiar with the French culture. Our
workshops have also unveiled the Peruvian culture
through art and history. Five children decided to continue
studying French as a third language.
Our program inspired the inclusion of French within
the curriculum of the 25 High-Performance Schools
as part of the National Agreement between thegovernment of France and the government of Peru,
signed in April 2020.

We promote human, integral and sustainable
development, and we consider education to be
essential for human development.

Yves Lequay
General Manager

A company must be aware that it is a part of society. Doing business is not enough. We all have the responsibility to share aterritory and society. We must be attentive to the needs of our community and prompt our clients to support us in building social andenvironmental programs; we don’t necessarily have to do it alone.

65
NASSF TRAVEL
Company Region: Lima
Company Industry: Sustainable
tourism
Number of employees:10
Contact email:liccet@nassftravel.com
Sustainability Reports: 2018 and 2019
Size: Micro
www.nassftravel.com

Training in eco-friendly practices for communities
Activity
We are a certified social enterprise. We offer
sustainable tourism services in Peru and Ecuador,creating purpose-driven trips to destinations
with both natural beauty and skillful and talented
indigenous and vulnerable communities. Our
experience-based services, eco-friendly practices
and fair trade encourage respect and appreciation forancestral culture.

Improvement strategy
Workshops and activities aimed at residents toencourage good practices that allow them to reduce
the negative environmental impact caused byinadequate solid waste management.
The communities participate in a 13-session workshop,
led by the Nassf Latin America Ecovolunteering Network,
aimed at promoting love and respect for nature, learning
how appropriate solid waste management can be used toestablish an eco-friendly business, and setting objectives
towards this goal. We delve into how these businesses
can provide income to improve their families’ well-being
and quality of life.

The identified problem
or challenge
We identified that communities in partnershipwith tourism service companies can improve theirenvironmental protection practices and promotesustainable tourism.

Results
We have achieved a 60% reduction in inadequate
solid waste disposal at critical points within theindigenous community.
The communities were taught to process domestic waste
and have achieved a total recovery of 10 tons of waste
per community.
The materials recovered are glass (1000 units), paperand cardboard (two tons) and plastics (2000 units),
among others. Residents have learned that their‘garbage’ is not just garbage, but recoverable solid
waste that can be valuable for the economy and thedevelopment of alternatives for eco-friendly enterprises.

Each ton of recycled paper saves a dozen trees,
presenting an alternative to building eco-friendly
businesses for the community.

Liccet Suarez
CEO

Teach the importance of shared responsibility in community development. Identify community leaders that can engage with theinitiative.

66
PERUVIAN TRADITIONS
Company Region: Lima
Company Industry: Fashion and Textile
Number of employees: 5
Contact email:carlos.cordero@norgate.com.pe
Sustainability Reports: 2018 and 2019
Size: Small
www.peruviantraditions.com.pe

Training our suppliers to ensure the quality of our processes
Activity
We are a company that produces, markets andexports natural fiber garments and accessories. We
have developed a natural fiber clothing brand called‘Norgäte’.
We identified that our main suppliers lacked businessknowledge.

Improvement strategy
We held workshops for our manufacturing suppliersin Arequipa, Cusco and Lima. They learned about
cost structures, logistics and best fair tradepractices. We believe that the workshop topics werevery relevant, especially those regarding costs, for they
provided the appraisal skills required to improve theirnegotiation capabilities and increase income.

The identified problem
or challenge

We identified that our main manufacturing suppliers
lacked knowledge of basic business topics such ascost structure, logistics and fair trade.
As a company, we are committed to promoting thedevelopment of our suppliers to ensure the quality of ourentire supply chain.

Results
Increased loyalty from our suppliers in Arequipa,
Cusco and Lima, which ensures the quality of our
products over time.

Our company and our suppliers are committed to
improving and learning more every day, creating newopportunities for all of our collaborators. We believe
sustainability to be the immediate future. Each reportfeatured new improvements, changes and innovations
within our organization. We are very proud to be part of
GRI’s Competitive Business Program.

Carlos Cordero Berkovic
President

Visit your suppliers frequently to identify further training opportunities that lead to the continuous improvement of their services.

67
PROCASA
Company Region: Ancash
Company Industry: Metal andMechanics
Number of employees: 17
Contact email:procasasrl_chimb@hotmail.com
Sustainability Reports: 2018 and 2019
Size: Small

Knowledge sharing with our clients
Activity
We are a leading company in the hardware sector.
We specialize in industrial bolts, automotive bolts,
tools, battery lines and hydraulic lines. We have morethan 30 years of experience offering quality products andexcellent customer service.

Improvement strategy
We offer smaller local hardware stores a special discountregardless of their purchase volume. We also provide
training to their owners on bolt types and characteristics,
as well as on market behavior. This training is aimed atincreasing their knowledge of their products to increase
their sales.

The identified problem
or challenge

Smaller hardware stores lack knowledge on bolts
and often find it difficult to stock up. Because theirpurchasing capabilities are limited, they must buy at the
final consumer price.

Results
These small hardware stores have improved boththeir income and profit margin by increasing theirbolt stocks and selling them at a better price.
Small hardware store owners now have the knowledge
required to educate their clients.

By sharing knowledge, we all grow.

Share knowledge with your clients to help them better understand the market. This helps everyone grow.

68

4

About this publication
This publication was designed to be a practical guide for Peruvian
MSMEs to achieve best practices in sustainability. It provides
multiple examples of how MSMEs have managed to incorporate avariety of sustainable practices. It also seeks to explain, simply andpractically, the concept of sustainability, the sustainability reportand its uses, and how to implement best practices based on thisreport’s results.
The purpose of this publication is to inspire MSMEs to incorporate
sustainability into their strategic planning in order to gain acompetitive advantage by using the sustainability report as amanagement and communication tool. It also seeks to help MSMEs
generate partnerships with other organizations, to encourage thedevelopment of the MSMEs ecosystem in Peru.

GRI and its work in Peru
GRI is an international public benefit organization that has beenpromoting transparency as a driver for sustainable development
since 1997. It helps organizations communicate their sustainability
impacts in a common language that can be understood globally.
This enables dialogue between organizations and informs
stakeholders so they can make better decisions.
Companies can use the GRI Sustainability Reporting Standards
as an evaluation instrument. The process of writing a sustainability
report helps design strategies needed to become a more
responsible company. The report itself strengthens stakeholder
relations.
In Peru, more than 70 of the largest companies in the country carryout sustainability reporting locally. Since 2017, GRI has received
financial support from the Swiss Confederation State Secretariat for
Economic Affairs (SECO) to implement the Competitive Business
Program in Peru. As a result, more than 800 sustainability reports
have been published by more than 500 Peruvian MSMEs.

69
The Competitive Business Program focuses on
expanding the the sustainability-related skillsof MSMEs by promoting sustainability reporting
as a tool to increase competitiveness and help
them venture into global markets. The program
is not exclusive to MSMEs, and also helps
large companies strengthen sustainability
and traceability in their supply chains. Large
companies can also reduce risks, capitalize on
opportunities, and strengthen their reputation
by assuming responsibility for their impacts
throughout their supply chain.
The Competitive Business Program has set
an example regarding sustainability reporting.
Peru is currently the country with the highest
number of MSME reports in the world.

The Swiss Confederation
State Secretariat for
Economic Affairs (SECO) and
its work with Peruvian MSMEs
The Swiss Secretary of State for Economic
Affairs (SECO) supports the sustainable
and a regionally balanced growth of Peru,
encouraging compliance with international
standards for good economic governance inorder to create opportunities for all.
The GRI Competitive Business Program
contributes directly to SECO’s objective of acompetitive and responsible private sector
that generates more and better jobs. It also
contributes to improving the competitivenessof SMEs and producer organizations, enabling
their access to international markets.
The program achieves these objectives
by strengthening the productive, businessand commercial management of SMEs.
This is highly relevant, for it improves thecountry’s competitiveness and the companies’
management of their sustainable impacts aas
well as communication. From 2016 to 2020,
the GRI Competitive Business Program,financially supported by SECO, has benefited
550 Peruvian SMEs that are now able tomeasure, manage and communicate theirimpacts through sustainability reporting.

70Partner Organizations
The Competitive Business Program’s successlies in its flexibility to adapt to its stakeholders’needs as well as its collaborative approach.
Because of this, our partner organizations
were invited to collaborate in the preparationand diffusion of this document. Partnerorganizations that participated in thispublication are:

CENTRUM PUCP Business School
CENTRUM PUCP was founded 20 years
ago with the vision of becoming the best
Business School in Latin America, and it is
now recognized worldwide. CENTRUM PUCP
believes social responsibility and sustainability
are fundamental for organizations to endure,create value and have a positive impact onsociety.
They are pioneers in the execution of positive
impact initiatives for their community. Their
contribution to sustainability transcends time.
They stand out for their teaching, educationaland solidarity initiatives, and for contributing
to improving the education of Peruvian
entrepreneurs.
In collaboration with GRI, CENTRUM PUCP’s
Observatory of Innovation and Sustainability
contributes to sustainable development in
Peru. Both organizations work towards better
integration of MSMEs in global supply chains,by developing more detailed and specificsustainability reports for each sector.

71

Ernst & Young

Grupo RPPEY is a global firm founded more than 115
years ago, with over 20 years’ experience inthe sustainability sector and more than 1,200
professionals specialized in sustainability,
climate change, sustainable finance and
OHSE. They believe that a better businessworld should be one that works for us all. Thisidea drives their efforts to achieve inclusive
growth through responsible business practices,and help create a world where everyone,
everywhere, can contribute to economic growthand enjoy its benefits. Through its long-termvalue creation strategy, NextWave, EY createsvalue for its people, its clients, its community
and its firm.

GRUPORPP promotes the progress of
Peruvians and believes that an informed
society makes better decisions. Therefore,
it seeks to educate the population andraise awareness on the benefits of equality,
inclusion and peace. To achieve this, it hosts
presentations and debates on opportunitiesaligned with the Sustainable Development
Goals (SDGs).

The Seed by EY team works with MSMEs topromote an ecosystem of entrepreneurship,
venture capital and impact investing. Throughspecialized professional services with amultidisciplinary, integrated and personalized
approach, EY aims to build a generation ofventures that are trusted by investors andcontribute to the consolidation of innovative
business models that drive development in our
region.

The organization uses all of its communication
platforms (radio, television, web and panels)
to develop awareness campaigns on theirown or in partnership with institutions such as‘Desarrollo Infantil Temprano’ (Early Childhood
Development). This particular campaign has
been running for more than 15 years, helping
maintain the commitments of governments
through journalism and influencing behavioral
change in Peruvian families. This is achieved
through extensive journalistic coverage of morethan 4,500 interviews and 75 microprograms(‘Ampliación de Noticias’ (‘News Extension’),‘Enfoque de los Sábados” (“Saturday Focus’)).
GRUPORPP has developed more than 11
similar awareness campaigns. Other examples
include ‘Manos Limpias, Niños Sanos’ (‘Clean
hands, healthy children’) and ‘Los primeros
tres años deciden la Vida’ (‘The first three
years determine life’).

72

Libélula

Metropolitan Municipality of Lima

Libélula (libelula.com.pe/) was founded in2007 to tackle a great challenge: connecting
public and private sector agents in order toface climate change together. Our mission
is to create and empower a community of
stakeholders whose daily actions add up toa resilient and sustainable future for all. This
community, which we have called ‘Comunidad+ 1’ gathers stakeholders who are leading thetransformation towards sustainability. Throughour platforms and projects, we connectbusinessmen, entrepreneurs, innovators,
researchers, journalists, governments andcitizens to build the resilient and sustainable
world that we need.

The mission of the Metropolitan Municipalityof Lima is ‘to create public value and promote
the integral, harmonious and sustainable
development of the province of Lima, throughefficient, transparent, participatory, concerted
and modern management’. It’s Economic
Development Office contributes to this mission
by promoting development and innovationin businesses of the Lima province, withemphasis on local MSMEs. By enabling theirformalization and promotion, it stimulates
economic activity and adequate employment.

One of these platforms is especially focusedon green MSMEs. The ‘Coalición por la
Economía Verde – Perú’ (‘Green Economy
Coalition – Peru’), is a platform that seeks
to accelerate the transition towards asustainable economic model by increasing
the number of green companies in the market.
We built a community of green MSMEs toidentify synergies, solve common obstacles,
attract new opportunities and increase theircompetitive capabilities on the market. The
platform currently empowers more than 215
MSMEs and connects them with more than
500 responsible consumers every day throughits web platform: economiaverde.pe

The Municipality offers programs forstrengthening and developing business
management skills and creates
education centers for the development oftechnical-productive skills (for example,
business incubators). These improve thecompetitiveness of productive, commercial
and service businesses. So far this year, theEconomic Development Office has served andsupported more than 3,000 MSMEs.
Promoting better management andcompetitiveness is the main focus of these
initiatives. Implementing long-term strategies
for business sustainability and a three-way
balance (economic, social and environmental)
is crucial in attaining the Municipalities’ goals.

73

Exports and Tourism Promotion Board ofPeru (Pomperú)
The Exports and Tourism Promotion Boardof Peru - PROMPERÚ, is the agency for thepromotion of exportable goods and services,
as well as domestic and receptive tourism,
which promotes and advertises the image of
Peru around the world. Promperú is attachedto the Ministry of Foreign Trade and Tourism.
Promperú is focused on the developmentof an offer which is exportable, diversified,competitive and sustainable. It is firmly
committed to contributing to the Sustainable
Development Goals (SDGs) by working
alongside exporting SMEs, civil society andcitizens through its sustainable trade programs.
In 2018, Promperú became part of theCompetitive Business Program by signing anagreement with the GRI. By implementing the
Corporate Social Responsibility Program of
the Sustainable Commerce Office in 2019,
it raised awareness amongst 20 companies
and 10 SMEs in the agribusiness and clothing
industry sectors, which presented their firstsustainability reports. In 2020, despite facing
an unprecedented pandemic, 14 SMEs from
Arequipa presented their sustainability reports
and five companies from Lima presented theirsecond report.

Perú 2021
Peru 2021 represents the World BusinessCouncil for Sustainable Development(WBCSD) in Peru and has inspired the CSR
agenda in the country for 26 years. Its higher
purpose is to mainstream sustainability inprivate companies. Peru 2021 promotes
compliance with the Sustainable Development
Goals (SDGs) as a roadmap to achievesustainable development.
Currently, the Peru 2021 network is made up
of more than 60 companies of diverse sectors
and sizes that recognize their role as agents ofchange and promote sustainable businesses
related to common challenges.
Peru 2021 believes that SMEs are an
important engine of the country’s economic
growth, and offers the Socially Responsible
Company Distinction (DESR, for its acronym
in Spanish), a management tool that assesses
the operations and impacts of companies
through environmental, social and governanceindicators.
To promote sustainability in the supply chain
and increase its impact on SMEs, Peru 2021
manages the Competitive Business and Value
Chains Program in alliance with the GRI.
Together with the member companies of the
Network, they seek to standardize processes,
reduce risks and capitalize on opportunities
with their suppliers through the preparation of
the sustainability report.

74

5

DatasheetThis publication was produced in collaboration with a group of professionals, private and public
institutions and micro, small and medium-sized entrepreneurs. It benefits from the technical andempirical experience on best practices in sustainability from all these people and institutions.

Secondary sources

The editorial team of this publication identified diverse secondary
sources from public and private organizations, such as studies
on the behavior of MSMEs in Latin America and, specifically, in
Peru. Studies revealing the impact of COVID-19 on Peruvian and
Latin American MSMEs were included as well.

Primary sources

The Peruvian MSMEs Best Practices in Sustainability
Competition gathered 408 MSMEs from the Competitive
Business Program (all these companies have prepared asustainability report as a management and communicationtool). The contest helped select 55 companies and 33 cases ofsustainability initiatives in MSMEs. The details of each case werecollected through individual interviews of up to 45 minutes percompany.

Publication structure

The publication has been designed to have a practicaland didactic structure, to inspire micro, small and mediumsized entrepreneurs to start implementing best practices insustainability, taking the cases of the abovementioned companies
as an example.

Feedback from partners

The partners of this publication participated in alignment
and feedback sessions in which comments on the structure,
identification of cases and other relevant points of this publication
were received. Feedback was also received in terms of validating
the layout and design.

This publication was prepared from October to November 2020

75

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