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), quarterly report released by Grant Thornton. The study, who 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 surpasses the averages of Latin America, what is 56%, the global, of 58%
Daniele Barreto e Silva, ESG specialist at Grant Thornton, attributes the growing interest of Brazilian companies to the movement of regulators around sustainability management and reporting practices, how the IFRS S1 and S2 standards issued by the International Sustainability Standards Board (ISSB). CVM Resolution No. 193 of the Securities and Exchange Commission, that makes the publication of reports on financial information related to sustainability mandatory starting in 2026, also strengthens transparency and encourages sustainable finance. These new sustainability reporting rules guide discussions and priorities of the ESG agenda within companies and greatly contribute to sustainable economic development, affirms the executive
Still in this context, Daniele highlights that the main challenge for companies is to integrate processes. "Currently, the practice of sustainability, in a large part of the companies, it happens vertically and does not properly engage with all areas and processes. The reporting requirements of IFRS S1 and S2 standards demand integrated information management, that involve different expertise, departments and committees, and encourage that the agenda be viewed in a cross-cutting manner,"complement". Communicate effectively the actions and results, clarifying the correlations between material sustainability information and financial statements, it is essential to demonstrate commitment to practices with lower socio-environmental impact and to build a greater relationship of trust with stakeholders, in addition to strengthening the reputation and attracting more investments, adds Daniele
The Importance of ESG Reporting for Reputation
The ESG practice has been seen as a strategic tool for companies that wish to stand out in the market. The inclusion of the report on financial information related to sustainability positions the ESG agenda as a pillar for business growth, as well as for the 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 – number above the global average, 57%, and from Latin America, 62%. Cecilia Russo Troiano, President of TroianoBranding, reinforces the power of communication and alerts to 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 reputation it is not enough to have a delivery of quality products or services, this is the basics. The consumer market wants to know about other contributions that a company makes to society. And, in this sense, the ESG practices are this something extra, complement Cecilia
Another point to consider is that commitment to sustainability brings positive impacts in various aspects, one of them is the attraction and retention of talent. According to the research "The importance of the ESG agenda for university students", carried out by Grant Thornton Brazil, 77% of respondents express interest in leaving a company that does not meet legal and market criteria related to ESG. The new generation has a very characteristic concern for values and beliefs, therefore, competitiveness in the current market requires companies to adopt solid practices and adapt to the future. Consumers who are increasingly well-informed seek brands that demonstrate a genuine commitment to sustainability, valuing governance initiatives, ethics and transparency. Furthermore, the reputation of a company is intrinsically linked to its ESG performance, influencing even the attraction of talent, points Daniele
