71% of Brazilian Medium-Sized Companies Intend to Invest in ESG Initiatives, Grant Thornton Research Points

Investment in sustainable initiatives remains a priority for 71% of medium-sized Brazilian companies, according to the latest edition of the International Business Report (IBR), a quarterly report released by Grant Thornton. The study, which interviewed 5 thousand entrepreneurs from around the world, reveals a slight decrease of 2 percentage points compared to the first quarter of the year, but still, sustainability maintains its relevance in the national market. The Brazilian index exceeds the Latin American averages, which is 56%, and global, of 58%.

Daniele Barreto and Silva, ESG specialist at Grant Thornton, attributes the growing interest of Brazilian companies to the movement of regulators around sustainability management and reporting practices, such as IFRS S1 and S2 standards issued by the International Sustainability Standards Board (ISSB). CVM Resolution n° 193 of the Securities Commission, which makes it mandatory to publish financial information reports related to sustainability from 2026, also strengthens transparency and encourages sustainable finance. “These new sustainability reporting rules direct the discussions and priorities of the ESG to sustainable development and the executive agenda.

Still in this context, Daniele highlights that the main challenge for companies is to integrate processes. “Currently, the practice of sustainability, in most companies, happens vertically and does not dialogue in the proper way with all areas and processes. The reporting requirements of IFRS S1 and S2 standards require an integrated management of information, which involves different expertise, departments and committees, and encourage the agenda to be seen in a transversal way,” complements. “Incurrently communicate effectively the actions and results, clarifying the correlations between the information of sustainability materials and financial statements, it is essential to demonstrate greater reputation and social commitment to build a greater environmental and social impact.

The Importance of ESG Reporting for Reputation

ESG practice has been seen as a strategic tool for companies that want to stand out in the market. The inclusion of the sustainability-related financial information report places the ESG agenda as a pillar for business growth as well as reputation.

Within the context of communication and reputation, when measuring the investment intentions of companies in branding, the IBR points out that 77% of Brazilian entrepreneurs intend to invest in the area in the next 12 months 57%, and Latin America, 62%. Cecilia Russo Troiano, President of TroianoBranding, reinforces the power of communication and alert to the need for companies to overcome the challenges of measuring and communicating the impacts of their ESG initiatives in a clear and transparent way to different audiences.“Today, for companies to build a reputation or services are just to have a sense of having a quality, the company is not having a sense of a product.

Another point to consider is that the commitment to sustainability brings positive impacts in several aspects, one of them being the attraction and retention of talents. According to the research “The importance of the ESG agenda for university students”, held by Grant Thornton Brazil, 77% of respondents show interest in ceasing to work in a company that does not meet the legal and market criteria related to ESG. “A new generation has a very characteristic concern with values and convictions, so the competitiveness in the current market requires companies to adopt solid practices and that adapt to the future Consumers increasingly better informed seek brands that demonstrate a commitment to sustainability, Danseg is also a commitment to sustainability.