Brazil is close to ensuring a regulatory framework for ESG (Environmental, Social and Governance for Sustainable Development (MRESG). Organized by the Global ESG Institute, by the Brazilian Association of Institutional and Government Relations (Abrig) and by the ESG Movement in Practice, the ESG20+ Public Consultation has just been launched, with suggestions for the structuring of environmental regulations, social and governance
The proposal must be available until the end of March, allowing the participation of companies, specialists in ESG practices and civil society as a whole. The intention is to establish a material that can be used for legislative projects as well as public and private guidelines, ensuring greater security for the productive sector
The adoption of ESG practices is a global requirement. Many countries and economic blocs already have their regulatory frameworks developed, given that the European Union was the pioneer. In Brazil, with the intention of strengthening governance and standardizing information, the ABNT PR 2030 standard – ESG, released on December 14, 2022, contains some basic guidelines regarding the incorporation of sustainable practices by companies. However, it is not enough
The creation and implementation of a framework for ESG in the national territory is essential. By establishing clear standards for companies and investors, it ensures greater legal security, minimizing uncertainties and also encouraging sustainable practices that can be developed in the long term. When defining unified criteria for the measurement and disclosure of practices, ensures standardization and greater transparency. With that, it avoids thegreenwashing("greenwashing"), defined as the misleading promotion of environmentally friendly corporate practices. The practice is considered a crime, segundo o artigo 37 da Lei 8078/90, of the Consumer Protection Code
The regulatory framework also attracts new investments, because it facilitates access to both national and foreign capital. This happens because, in recent years, investors have prioritized organizations that are well aligned with good practices. These companies tend to be more sustainable, resilient and profitable in the long term, being less exposed to risks, gaining greater public confidence and showing more stable performance in the stock market, besides lower volatility. It is not just a matter of ethics, investing in companies committed to ESG is a very smart financial strategy
Finally, unified criteria make Brazilian companies better adapted to international requirements, what contributes to the facilitation of exports and the establishment of strategic partnerships; and encourage the development of business actions capable of minimizing environmental impacts and promoting social development, contributing to a more balanced economic growth. Thus, society as a whole is benefited
