Currently, sustainability and social responsibility have become essential pillars for companies in Brazil and around the world. The acronym ESG, which stands for Environmental, Social and Governance, is increasingly present in corporate vocabulary. And in this way, it represents the criteria used to measure the performance and impact of organizations in relation to these aspects. At first glance, such practices seem applicable to large companies, but we believe in the immense transformative power they have. Especially for small and medium-sized companies.
Better Business, Better World
The search for a more sustainable world is driving companies to adopt responsible practices. Leading companies are turning challenges into opportunities, aligning profit with purpose. As a result, innovative business models emerge that reduce environmental impacts, promote inclusion and benefit the entire society.
This approach not only promotes corporate responsibility but also boosts the economy. By adopting renewable energy and transparent management practices, companies cut costs and attract conscious consumers. With strategic partnerships and investments in education, they are building a future where successful businesses coexist with a healthy planet.
We will now explore the pillars of ESG in Brazilian companies. As well as, they contribute to a better Brazil and a better world. And for more sustainable, transparent, ethical and responsible businesses.
The environmental pillar of ESG: using resources intelligently
The environmental pillar refers to companies' practices in relation to preserving the environment and mitigating negative environmental impacts. Therefore, organizations are increasingly concerned about reducing carbon emissions, conserving natural resources and adopting sustainable measures in their operations.
In Brazil, companies from different sectors have adopted strategies aimed at environmental sustainability. Innovation in the ways of using renewable energy, efficient waste management and encouraging recycling. As well as the preservation of green areas. Therefore, these are some of the actions implemented by these organizations.
The social pillar: inclusive and diverse companies
The social pillar of ESG is related to the impact of companies on the society in which they operate. Organizations have the role of contributing to economic and social development, promoting equality, diversity, respect for human rights and the well-being of communities.
In Brazil, several companies have adopted social responsibility programs. Focused on education, health, inclusion and job creation. Furthermore, volunteering actions and partnerships with NGOs and charities are examples of how Brazilian companies have engaged with social issues.
Diversity and inclusion research, with action plans
Integrating diversity and inclusion into business culture is crucial. Through research, employees' perception of diversity is understood and areas for improvement are identified. This allows for action plans to foster a genuinely inclusive culture. By analyzing strengths and weaknesses, the company can create a more inclusive and diverse environment. In this way, the organizational culture begins to reflect the values of equality and respect.
The governance pillar: employee safety and consumer loyalty
The ESG governance pillar concerns transparency, ethics and efficiency of company management processes. Therefore, good corporate governance is essential to guarantee stakeholder trust. As well as protecting the rights of workers and shareholders and complying with laws and regulations.
In Brazil, strengthening corporate governance has been successful for many companies. The adoption of compliance practices, transparency in the disclosure of financial information and the active participation of boards of directors are examples of how organizations are improving their governance.
A company without compliance (part of ESG) can cost you dearly
Compliance involves adhering to laws and regulations, whether federally or internally within organizations. In companies, this ranges from corporate policies to legal procedures. Complying with legal obligations, such as business opening processes, is just the beginning. Therefore, being in compliance implies meeting general responsibilities, including financial ones, and ensuring the safety of everyone involved.
By promoting a culture of compliance, companies tackle bureaucracy efficiently. In other words, promoting truly sustainable growth and avoiding legal problems and fines. Non-compliance can be costly. Companies in the US lose around US$ 4 million on average due to failure to comply with internal and external rules, highlighting the importance of compliance.
The importance of ESG practices for small and medium-sized companies
At first, it may seem that such practices are more applicable to large corporations, however, it is a mistake to underestimate the transformative power they have, especially for small and medium-sized companies. Find out more about how implementing ESG practices can not only improve a company's image, but also strengthen its ties with customers, employees and society as a whole.
The power of business ethics
Small and medium-sized businesses often operate in local communities, where their actions have a direct impact on the lives of those around them. In this way, the adoption of ESG practices reflects a commitment to business ethics and environmental responsibility. Simple actions like recycling waste and using solar energy can not only reduce a company's environmental impact, but also instill confidence in the minds of local consumers.
Building a responsible brand
One of the reasons why companies should adopt ESG practices is the growing demand for responsible brands. Nowadays, consumers are not limited to considering only the quality of the product or service; they value the integrity of the company behind them. In other words, companies that demonstrate a commitment to environmental health and social well-being gain the loyalty of customers who seek to contribute to a better world through their consumption choices.
Employee engagement and productivity
In addition to attracting conscious customers, ESG practices also positively impact the company's internal employees. A work environment that promotes equal rights, regardless of gender, race or age, creates a sense of belonging. Employees who feel valued and part of a greater mission tend to be more engaged and productive, contributing to the company's sustainable growth.
Competitiveness in the market
In the current business scenario, competition is fierce. Ignoring ESG practices is a strategic mistake that can leave a company behind. As more companies recognize the benefits of these practices, those that do not adapt may lose market share. Therefore, adopting sustainable measures is not only an ethical choice, but also a smart move to ensure relevance and competitiveness.
ESG: more than a trend, a real need
It is crucial to understand that ESG practices are not a mere passing trend. They are here to stay and shape the future of business. The movement towards a more humane, respectable and sustainable approach in companies is a response to growing global awareness about the importance of preserving the environment and social equity. Companies that align with these values are positioning themselves as visionary leaders and shaping a more responsible and promising business environment.
Better Business, Better World = Better business, better world.
Alessandra Rech Tortelli is CEO of Conex Negócios, graduated in Administration and has an MBA in Retail Management, Franchise Management and Omnichannel Retail. She worked as an internal consultant and manager of large companies, such as: Tintas Renner, Arezzo, Portobello Shop, Mormaii, Confecções Brandili, etc., in 2010 she founded Conex Negócios, a consultancy company focused on Structuring and Expansion of Companies, she is also a speaker, teacher and creator of the startup ConexHub. Alessandra loves challenges and being connected with entrepreneurs, promoting exchanges, experiences and knowledge. She believes that we are all interconnected, that the challenge of one is the challenge of all!
