Brazil is close to securing a regulatory framework for ESG (Environmental, Social, and Governance) for Sustainable Development (MRESG). Organized by the Global ESG Institute, the Brazilian Association of Institutional and Governmental Relations (Abrig), and the ESG in Practice Movement, the ESG20+ Public Consultation has just been launched, proposing suggestions for structuring environmental, social, and governance standards.
The proposal will remain available until the end of March, allowing businesses, ESG practice experts, and civil society as a whole to participate. The goal is to establish material that can be used for legislative bills and public and private guidelines, ensuring greater security for the productive sector.
The adoption of ESG practices is a global requirement. Many countries and economic blocs already have developed regulatory frameworks, with the European Union being the pioneer. In Brazil, aiming to strengthen governance and standardize information, the ABNT PR 2030 – ESG standard, launched on December 14, 2022, contains some basic guidelines regarding the incorporation of sustainable practices by companies. However, it is not sufficient.
The creation and implementation of an ESG framework in Brazil is crucial. By establishing clear rules for companies and investors, it ensures greater legal certainty, minimizing uncertainties and also encouraging sustainable practices that can be developed in the long term. By defining unified criteria for measuring and disclosing practices, standardization and greater transparency are ensured. This helps avoid greenwashing (‘greenwashing’), defined as the deceptive promotion of environmentally friendly corporate practices. This practice is considered a crime under Article 37 of Law 8078/90, part of the Consumer Defense Code.
The regulatory framework also attracts new investments, as it facilitates access to both national and foreign capital. This is because, in recent years, investors have prioritized organizations that align well with best practices. Such companies tend to be more sustainable, resilient, and profitable in the long term, facing fewer risks, gaining greater public trust, and showing more stable stock market performance with reduced volatility. It’s not just an ethical issue—investing in ESG-committed companies is a highly intelligent financial strategy.
Finally, unified criteria help Brazilian companies better adapt to international demands, facilitating exports and the formation of strategic partnerships. They also encourage business initiatives that minimize environmental impacts and promote social development, contributing to more balanced economic growth. Thus, society as a whole benefits!
