OECD experts and business leaders outline roadmap for sustainability, training and governance in Latin America

The day, moderated by Narciso Casado, permanent secretary of the Ibero-American Business Council (CEIB) and director of Relations with Latin America of the CEOE, is part of the Ibero-American Key Conference Cycle.

Keynote speakers included Marta Encinas, OECD Gender Ambassador for Education; José Antonio Ardavín, Head of the Latin America and Caribbean Division at the OECD Global Relations Secretariat; and Fernando Trevino, member of the Executive Committee of Business at OECD (BIAC) and Vice President of International and Labor Affairs of the Employers' Confederation of the Mexican Republic (COPARMEX).

The debates focused on priority topics for the development and growth of Latin America, such as the urgent need to regain citizen trust through integrity and sound governance. The importance of responsible business conduct and the practical application of international standards was emphasized, as well as strengthening the relationship OECD-Latin America and the Caribbean (LAC).

The Educational Challenge and the Strategic Role of the Private Sector

One of the most critical points was the mismatch between the education system and the needs of the labor market. Marta Encinas, of the OECD, painted a worrying picture: “One in two students does not reach the minimum level of skills according to the PISA results, and one in ten adults fails to exceed the basic levels in the PIAAC tests.” This reality, she stated, explains why “the Latin American market cannot find qualified personnel.” Despite youthful ambition, less than 1% of them access tertiary education, and many opt for careers with low demand. Encinas also warned about the low interest in STEM (Science, Technology, Engineering, and Mathematics) careers, especially among women, where only 2% choose technological studies.

Given this scenario, the decisive role that businesses can play was highlighted. "We are trying to see how businesses can contribute in this area, to counteract what is not being achieved through education," Encinas stated. The private sector's ability to offer practical training, generate formal employment, and rescue young people from environments of exclusion or violence was a consensus.

Fernando Treviño, from COPARMEX and BIAC, illustrated this potential with concrete examples from Mexico, where 55% of workers operate in the informal sector and poverty affects 40% of the population. He mentioned dual training programs in Querétaro and projects that link value chains with indigenous communities. "Companies can transform realities, especially when they work with universities and local governments," he asserted.

Sustainability: More than a Complement, a Criterion of Competitiveness

Treviño warned that sustainability is no longer optional, but rather “a criterion of competitiveness.” He urged adopting a long-term vision, integrating Environmental, Social, and Governance (ESG) principles into decision-making. However, he acknowledged the limited penetration of these practices: “Only 32% of mexican companies currently reports its practices in this area." He attributed this figure to barriers such as lack of knowledge, insufficient regulatory frameworks, and the perception of high costs. However, progress is tangible: 15 Mexican companies are listed in the Sustainability Year Book 2024, demonstrating that change is possible.

The energy transition also took center stage, especially with the nearshoring Verde on the horizon. The need for clean and affordable energy was highlighted. Mexico, for example, plans to invest $32.000 billion in its electricity sector by 2030, seeking to incorporate more than 9.500 MW of renewable capacity. These initiatives open doors to international collaboration, where Spain could play a key role in training, knowledge, and investment.

Sound Governance and Responsible Business Conduct as Pillars

José Antonio Ardavín, of the OECD, emphasized governance as the basis for sustainability, highlighting the urgency of fostering strong, stable, and effective institutions in the face of the loss of public trust. He announced the upcoming launch of a survey on boosting trust in public institutions, to be presented at the Ministerial Summit on Governance in Paraguay in November. This initiative builds on the 2017 governance action plan and the integrity indicators developed with the IDB.

Ardavín also stressed the need to consolidate responsible business conduct frameworks. He recalled the SERALC (Responsible Business Conduct in Latin America and the Caribbean) project, launched in 2019 to improve the implementation of due diligence in regional companies, aligning them with the OECD Guidelines for Multinational companiesHe also reported on the work on new SME policy indexes, in partnership with CAF, to promote their digitalization and development.

At the geopolitical level, the Global Gateway programme of the European Union"The region needed clear signals that it remains a priority for Europe," Ardavín said, highlighting the potential of multilateral networks to generate transformation.

Business Commitment to Sustainability and MSMEs

Married Narcissus He closed the meeting by reaffirming the commitment of the business sector, represented by CEIB, to sustainability and regional integration. He confirmed CEIB's participation in the OECD Costa Rica Governance Summit and announced "the upcoming celebration of the MSME Forum in November in Tenerife.”

Casado shared the conclusions of the III Observatory of Sustainability in Ibero-America (driven by CEIB, FIJE and EAE Business School), which reveals that 67% of companies prioritize their contribution to social welfare and 63% already have a specific CSR area (90% in large companies). In addition, 44,7% have incorporated the Sustainable Development Goals (SDG) to their strategy, and 28% are in progress. The main challenges identified are climate change (41%), the economic crisis (37%), and cybersecurity.

The meeting concluded with a call for coordinated action among governments, the private sector, and international organizations to address these complex challenges and promote inclusive and sustainable development in Latin America.