Why doing good is good for business

In mid-2021, we launched the Impact Fund, an initiative that ensures that a small amount from every order goes to financing impact & sustainability projects. Apart from ensuring continuous funding for these projects, the Impact Fund is a way to make sure the more our business grows, the more positive impact we can generate.

We sat down with Sébastien Pellion, Global Head of Impact & Sustainability at Glovo, to discuss how creating a positive impact is not only good for the planet, but good for business.

Can you share insights into why environmental and social responsibility are crucial for long-term success?

Seb: First and foremost, the most important reason is because it’s the right thing to do. This fundamental belief is what led us to create the Impact Fund in the first place.

Today, people expect businesses in the 21st century to be corporate citizens and all of our stakeholders- including customers, partners, couriers and the local communities which we serve - increasingly demand responsible behavior and meaningful impact from the businesses they spend their time and money with. 

From a more pragmatic side, complying with increasingly strict legal regulations around environmental practices is something we are able to do proactively, rather than reactively, thanks to this mindset. We’re investing in projects like sustainable packaging, reducing CO2 emissions at our offices, micro-fulfillment centers, and throughout our core business. Today, for example, 35% of the Courier fleet consists of non-combustion vehicles and our long term goal is to reach 65% by 2030. 

Lastly, employee engagement plays a pivotal role in our long-term success. The difference between just doing business and being a company with a sustainable future is crucial for attracting and retaining top talent. The simple truth is that people want to work for companies that share their values. While not everyone may seek out a company solely for its social impact, the overarching commitment to doing the right thing resonates deeply with employees and contributes to a sense of making an impact at work. 

How can businesses contribute to environmental sustainability while maintaining profitability?

Seb: It's crucial to recognize that business and sustainability are not mutually exclusive; rather, they complement each other. We have initiated several initiatives that are not only good for the environment, but are good for business.

For example, in our micro-fulfilment centers, we’ve implemented a food rescue project where store managers are able to create discounted packages of foods that are near their expiration dates.  In Spain, we also have two Solidarity Delivery Centres which provide restaurants and partners with solutions to reduce waste by providing them with a path to donating excess food to vulnerable communities. 

Our sustainable packaging is another win-win where we’ve committed to delivering 92% of our orders with sustainable packaging by 2030. Not only did the advent of this project anticipate legislative requirements in certain countries, but also presented a revenue opportunity for us and an entry point for partners to adopt for sustainable business practices. 

Beyond environmental impact, how can businesses contribute to social well-being?

Seb: Social responsibility means giving back to the community and contributing positively to society in order to build a more sustainable and equitable future for all. 

Any business can partner with NGOs, city councils, and social enterprises but the Glovo way is by giving them access to our logistics through Glovo Access, a platform that leverages our core business strengths in technology and logistics to serve the common good by delivering millions of social meals and saving food from going to waste. Since its inception, Glovo Access has facilitated the delivery of 4 million meals to vulnerable communities thanks to our network of 200,000 partners.

Supporting small to medium-sized businesses (SMEs) is also crucial for community development. Since launching the Crisis Relief Support program, we’ve given our Partners a sense of security in their times of crisis. Last year, for example, we were able to provide immediate assistance in Morocco following the 6.8 magnitude earthquake, to Partners in Reggio-Emilia after severe flooding, and more.

Finally, we invest in learning opportunities for Couriers and Partners through our G-Learning platform and Glovo Academy, respectively. These platforms provide training and development opportunities to empower our stakeholders. In addition to this program, in the last year, we’ve been able to raise over €27,000 euros for NGOs assisting with crisis relief efforts thanks to WorldCoo, a company that we acquired for social impact purposes.
Interestingly enough, we've even seen a correlation between couriers who engage with our G-Learning platform and their order volumes, highlighting the value of upskilling and continuous learning to improve fleet retention and satisfaction. 

How does positive impact extend beyond the business environment?

Seb: Ultimately, our commitment to social impact goes beyond business considerations; it's a reflection of our values and our belief in the power of business to drive positive change in the world.

One of our strongest values lies in our belief of the importance of developing a strong Diversity, Inclusion and Belonging (DIB) framework, allowing us to foster an inclusive environment across our ecosystem where individuals can be themselves. Creating inclusive environments that foster diverse perspectives not only promotes fairness but also drives innovation and enhances problem-solving abilities.

In Spain, for example, we launched the Labor Insertion Project, a project that provides access to job opportunities for at risk communities, including refugees, and job opportunities for individuals with disabilities. By providing individuals with employment opportunities and essential skills training, we’ve been able to empower participants to transcend their circumstances and build a brighter future for themselves and their families.

Our Glovo Access platform, as mentioned before, also plays a crucial role in this endeavor by facilitating the digitization of NGOs, empowering them to scale their impact and reach more beneficiaries.

What are your goals for the Impact fund in 2024?

Seb: In 2024 our big goals are:

1. Growing Glovo Access exponentially to support NGOs with their missions.
2. Expanding our investment in Glovo Local, which aims to help digitize SMEs, to provide our partners with enhanced opportunities, ranging from skill-building to digital transformation.
3. Enhancing learning opportunities for our couriers through strategic partnerships with Sololearn and Busuu, empowering them with valuable skills and knowledge
4. Actively invest in reforestation efforts, contributing to environmental sustainability to complement our carbon emission reduction strategy focused on improving sustainability of the vehicle fleet, packaging used by partners, and management of food waste.

The fact is that businesses can strategically invest in initiatives supporting the UN’s Sustainable Development Goals (SDGs), while offering economic benefits and having a positive impact on the communities they serve. The key is to look for win-win opportunities that leverage your core business in a way that can be a force for good.

At the end of 2023, the Impact Fund has been able to dedicate over €4.6 million since its inception in mid-2021. This strategy will help us scale our impact in the longer term by creating new business models combining the generation of profits with the creation of social and environmental value for society.

By 2030, our goal is for 10% of our orders to have a social purpose, to reduce our carbon emissions by 42%, to upskill 100,000 Couriers and help digitalize 200,000 Partners. While we still have a long road ahead to achieve these goals, by ingraining this mindset into the very way we conduct business, we are ensuring that our core business is able to leave a positive impact in the communities we serve.