ESG: Preparing companies for the new reality

ESG comes from the term "Environmental, Social and Governance". It is applied through the internal organization of the companies, where they start to change their production ...

Raquel Medeiros


Raquel Medeiros


June 7, 2021

ESG values can be applied in small and large company actions.

The acronym ESG comes from the term "Environmental, Social and Governance". It is applied through the internal organization of companies, where they start to change their production method, administration, relationship with clients and employees to something more pleasant and sustainable. These are companies that seek to invest in everyone's quality of life and that, consequently, work in favor of the planet's environmental issues.

Despite being a short acronym, its composition carries a lot of meaning. In this case the 3 factors mentioned represent internal values that must be followed by companies. The letter "E" carries environmental requirements aimed at controlling global warming and carbon emissions, air and water pollution, and others. The letter "S" involves social issues, such as customer satisfaction, data protection and privacy, staff diversity, employee engagement, community relations, respect for human rights and labor laws. With the letter "G", the topics involved refer to governmental issues such as board composition, audit committee structure, corporate conduct, executive compensation, relationship with government entities and politicians, and the existence of a whistle-blower channel. These are the precautions that companies seeking to invest in ESG deal with, generating a strong foundation for the brand aiming at its future and the well-being of its staff.

It is not news that employee production increases when their working environment and the relationship with other professionals becomes pleasant. This also applies to the clientele when they have good service and their rights as consumers are guaranteed. In a general view, with ESG the company, besides gaining through production and clientele, it becomes well regarded by humanizing its brand. The awareness and position of companies regarding environmental movements enriches their reputation and improves their image even more. Even if there are people who do not yet consume your product, they will prioritize your company simply because of the values it carries.

ESG is an investment that is increasingly present in discussions among investors and entrepreneurs, because it is seen as a solution to the noise that exists between brands and sustainability. ESG is becoming a principle for companies that will be able to grow with this new reality, because today brands with a future are conscious brands. In other words, companies that will win are precisely those that are concerned with the good of society, the maintenance of the planet, and the construction of a better world.

In Brazil the industry's awareness came with the course of the pandemic. With Covid-19, investments in ESG have increased and gained strength in the country, and although it is not yet strong on national territory, investors and businessmen guarantee that companies that do not adapt to ESG in the future will not be able to maintain themselves.  But this is not a problem for Brazil since, even in small steps, it is becoming aware of the sustainable and economical methodologies that should be applied in national companies as time goes by.

Capitalism has made companies antagonistic to actions in favor of the environment, social inclusion, and others. Despite this mentality being present among citizens for decades, it is important to remember that the humanization of the brand also generates profit, and what attracts more and more consumers, besides the quality of the product, is their identification with the brand. So, expand your company's values, make it part of something much bigger, and be part of this new reality with us.

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