The Xunta de Galicia, through the Galician Institute for Economic Promotion (Igape), has announced a line of grants for the implementation of projects for the development and improvement of ESG factors in SMEs (Environmental, Social and Governance). Its purpose is the development and implementation of advanced solutions for the production, transport and distribution of raw materials, components, semi-finished products and final products, achieving reductions and savings in the use of natural resources, water and energy and reductions in the generation of waste, by-products or waste, with the tendency to convert waste into resources for use in other production processes; and also those actions aimed at developing corporate social responsibility and advancing in the best models of governance in organizations.

There are two types of projects:

1. Individual projects in which an SME addresses ESG impact measures specifically designed or developed for its field of activity.
2. Collective industrial symbiosis projects in which a group of companies (with a minimum of three independent firms, optionally coordinated by a collaborating intermediate body) undertake an ESG project to improve the use of resources and reduce environmental impacts or propose actions of social impact jointly. Industrial symbiosis facilitates social impact, the exchange of energy, materials, water and by-products to close material and energy cycles, maximize the use of waste and minimize the use of raw materials.

The proposed projects, both in the individual and collective modality, should aim to meet about twenty objectives grouped into 4 typologies: global, environmental, social or governance. 

The global typology includes measures such as auditing and evaluation of ESG risks or consulting and certification as a B Corp company (a standard that certifies the commitment of companies to generate a positive impact on society).

The environmental section includes objectives for reducing resource consumption in the production process (energy efficiency, carbon footprint, reuse of waste, etc.) and objectives linked to product life cycle analysis (incorporation of sustainability criteria in purchasing or implementation of sustainable design strategies).

In the category of social objectives, the call contemplates measures related to diversity and inclusion (development of plans to promote an inclusive and diverse work environment, promotion of equal opportunities and diversity at all levels of the company); work ethics (proposals for fair and ethical labor practices to ensure safe and respectful working conditions); or development of community investment programs (participation in activities that benefit local communities, education, health or community development programs).

Finally, in the field of governance, there are aspects related to the structure of boards of directors, financial transparency and business ethics.

The procedure for awarding these grants will be processed on a non-competitive basis and are open until September 16.