The ESG themeEnvironmental, Social e Governançahas never been as popular in Brazil as it is now. This is because the ESG20+ Public Consultation was launched in the country, with suggestions for the structuring of environmental standards, social and governance. Available until the end of March, it should give rise to a fundamental regulatory framework to standardize practices, ensuring that all public and private companies follow clear and uniform criteria
In today's world, ESG has been widely adopted for investors' decision-making. These tend to prioritize companies that adopt good practices because they generally present lower risks, are better prepared to face regulatory challenges and demonstrate a commitment to long-term sustainability. All these factors can lead to greater profitability and financial stability, in addition to meeting the demands of consumers andstakeholdersfor administrative transparency, ethics and responsibility
ESG is synonymous with solidity, lower costs, better reputation and greater resilience amid uncertainties and vulnerabilities. Many countries and economic blocs – as European Union (considered pioneering), United States and Canada – they already have their regulatory milestones developed.Thus, the existence of unified criteria and compliance with them by organizations will elevate Brazil to better representation in the foreign market, increasing your global competitiveness
All companies, regardless of size, are influenced by governance, which is nothing more than ethics and transparency in management. In this way, all are influenced by ESG. One of the twenty principles under analysis in the ESG20+ Public Consultation, and also one of the most important, concerns the simplification of legislation so that small organizations have better conditions to adapt to the regulations
Many times, in the current reality, small companies cannot have a board of directors made up of professionals specialized in governance. However, it is important that the business owner himself or any other member of the board is able to, alone, study and understand the guidelines. A careful internal audit increases legal security, reduces the risk of fines and prevents the company's image from being tarnished in the market. Already in relation to the large entities, the presence of one or more members specialized in ESG within the board of directors is essential
The existence of criteria encourages companies to adopt practices that minimize impacts, promote social justice and ensure transparency, resulting in sustainable and balanced economic growth. Recently, in an interview granted to the press, the executive director of the Brazil Network of the Global Compact ESG, Carlo Pereira, was quite assertive in stating that "ESG is not an evolution of corporate sustainability, but rather the very business sustainability.
According to recent data released by PwC, the estimate is that, at the beginning of this year, 57% of mutual fund assets in Europe are in funds that consider ESG criteria. This corresponds to US$ 8,9 trillion. Another interesting fact, disclosed by the same institution, is that 77% of institutional investors surveyed by PwC itself plan to stop acquiring, by 2027, products from companies that do not adopt good practices
ESG20+
Anyone interested can participate with suggestions and opinions in the ESG20+ Public Consultation, that will be available until the end of this month of March. It is organized by the Global ESG Institute, by the Brazilian Association of Institutional and Government Relations (Abrig) and by the ESG Movement in Practice
The interinstitutional initiative seeks to structure environmental standards, social and governance to guide public bodies, the society, companies and investors in Brazil. The goal is to simplify the application of ESG principles, in addition to defining unified criteria for the measurement and disclosure of practices
