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 published by Grant Thornton. The study, which interviewed 5,000 entrepreneurs worldwide, reveals a slight decrease of 2 percentage points compared to the first quarter of the year, but sustainability still maintains its relevance in the national market. The Brazilian index exceeds the averages of Latin America, which is 56%, and the global average, of 58%.
Daniele Barreto e Silva, an ESG specialist at Grant Thornton, attributes the growing interest of Brazilian companies to the regulators' movement around management and sustainability reporting practices, such as the IFRS S1 and S2 standards issued by the International Sustainability Standards Board (ISSB). CVM Resolution No. 193 of the Securities and Exchange Commission, which makes the publication of financial information reports related to sustainability mandatory starting in 2026, also strengthens transparency and encourages sustainable finance. "These new sustainability reporting rules guide the discussions and priorities of the ESG agenda within companies and greatly contribute to sustainable economic development," states the executive.
Still in this context, Daniele highlights that the main challenge for companies is integrating processes. "Currently, sustainability practices in most companies are carried out in a vertical manner and do not properly engage all areas and processes. The reporting requirements of IFRS S1 and S2 standards demand integrated management of information, involving different expertise, departments, and committees, and encourage the issue to be viewed in a transversal way," he adds. "Effectively communicating actions and results, clarifying the correlations between material sustainability information and financial statements, is essential to demonstrate commitment to lower environmental and social impact practices and to build greater trust with stakeholders, as well as to strengthen reputation and attract more investments," adds Daniele.
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 financial information report related to sustainability positions the ESG agenda as a pillar for business growth as well as for reputation.
Within the context of communication and reputation, when measuring companies' investment intentions in branding, the IBR indicates that 77% of Brazilian entrepreneurs intend to invest in the area in the next 12 months – a figure above the global average of 57% and Latin America's 62%. Cecília Russo Troiano, President of TroianoBranding, emphasizes the power of communication and warns about the need for companies to overcome the challenges of measuring and communicating the impacts of their ESG initiatives clearly and transparently to different audiences. "Today, for companies to build a reputation, it is not enough to deliver quality products or services; that is the basics. The consumer market wants to know about other contributions a company makes to society. And, in this sense, ESG practices are that extra something," complements Cecília.
Another point to consider is that commitment to sustainability has positive impacts in various aspects, one of which is attracting and retaining talent. According to the survey "The importance of the ESG agenda for university students," conducted by Grant Thornton Brazil, 77% of respondents show interest in leaving a company that does not meet legal and market criteria related to ESG. "The new generation has a very characteristic concern with values and convictions, therefore, competitiveness in the current market requires companies to adopt solid practices and adapt to the future. increasingly well-informed consumers seek brands that demonstrate a genuine commitment to sustainability, valuing governance, ethics, and transparency initiatives. Furthermore, a company's reputation is intrinsically linked to its ESG performance, even influencing talent attraction," says Daniele.
