Companies of any size, the most varied economic activities, they have a homework assignment: implement ESG Agenda (Environment, Social and Governance or Environment, Social and Governance in good Portuguese.
We say it is a homework because adhering to the ESG Agenda is not merely a matter of choice, of wanting or not wanting. It is indeed a duty – a duty to society, with the planet. AND, on top of that, it is good for business, given that the market and consumers, increasingly, demand and value organizations committed to sustainability.
We know that incorporating these practices is not an easy process, not made overnight. There is not a moment when we stop and say: "Ready, "ESG agenda successfully completed". It is a continuous process and requires commitment, planning and consistency in the implementation of practices within the company.
A study by Beon ESG and Aberje, named, "ESG maturity in Brazilian companies: advances and challenges", with recent data, from last year (2024), it shows that only 20% of organizations publish sustainability reports, and that only 27% have a materiality assessment of the practices employed. On the other hand, the same study indicates that in recent years the engagement of companies with ESG has been on the rise.
The letter "S", of Social, it is the one that concentrates almost all the shares. The concept of social responsibility has been part of corporate culture for a long time, long before the emergence of the ESG Agenda. In Brazil, we had the rise, in the 1990s, of corporate social responsibility practices, fostered by the third sector.
Before, social responsibility was focused on promoting basic needs for people. Social counterpart initiatives, training actions, campaigns to combat inequalities are at the origin. Today, beyond these, we see the promotion of ethnic-racial equality and respect for diversity.
For the Environment pillar, climate emergencies have raised the alarm signal. In this way, examples of organizations with measures to mitigate or even eliminate impacts are expanding. Certifications that attest to sustainable practices are there to encourage and recognize companies that are truly committed to the survival of the planet.
Regarding Governance, there is a need for self-criticism, look inside the corporation. That's why it may be the most complex. It requires a change of culture and the breaking of paradigms. Finding the balance between preserving the history and identity of the company and, at the same time, adopt principles, structures and processes that generate sustainable value, it is one of the most complicated tasks.
The ESG agenda requires awareness, roll up your sleeves and resilience to move forward, even knowing that the results are not immediate, and not always measurable. Meanwhile, the return comes. If you haven't started yet, the saying goes: "It's never too late". If you are already implementing: Congratulations!
By Reynaldo G. Júnior and Marco Stoppa, directors of Reymaster Electrical Materials, from Curitiba, company with almost 40 years of operation in the market.
