Brazil is close to establishing 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 Government Relations (Abrig), and the ESG in Practice Movement, the ESG20+ Public Consultation has just been launched, with suggestions for the structuring of environmental, social, and governance standards.
The proposal must be available until the end of March, allowing the participation of companies, ESG practice specialists, and civil society as a whole. The intention is to establish a material that can be used for legislative projects as well as 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 their regulatory frameworks developed, with the European Union being the pioneer. In Brazil, with the aim of strengthening governance and standardizing 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 enough.
The creation and implementation of a framework for ESG in the national territory is essential. By establishing clear standards for companies and investors, he ensures greater legal security, minimizing uncertainties and also encouraging sustainable practices that can be developed in the long term. By establishing unified criteria for measuring and disseminating practices, standardization and greater transparency are ensured. With that, it is avoided thegreenwashing("greenwashing"), defined as the deceptive promotion of environmentally friendly corporate practices. Practice is considered a crime according to Article 37 of Law 8078/90, of the Consumer Defense Code.
The regulatory framework also attracts new investments, as it facilitates access to both domestic and foreign capital. This happens because, in recent years, investors have prioritized organizations that are well aligned with good practices. These companies tend to be more sustainable, resilient, and profitable in the long term, being less exposed to risks, gaining greater public trust, and demonstrating more stable performance in the stock market, along with lower volatility. It's not just an ethical issue; investing in companies committed to ESG is a very smart financial strategy.
Finally, unified criteria make Brazilian companies better adapted to international requirements, which facilitates exports and the formation of strategic partnerships; and they encourage the development of business actions capable of minimizing environmental impacts and promoting social development, contributing to more balanced economic growth. Thus, society as a whole benefits!
