2024-04-17 19:45:46
The consultancy Korn Ferry released the results of a study carried out in 2023, which found that 67% of companies in Brazil adopt ESG practices as a strategic pillar. Furthermore, 75% of organizations said they had plans to implement actions in this regard in the next 12 to 18 months.
Examples of ESG are: using clean and renewable energy sources in the production process, adopting inclusion and diversity criteria when hiring professionals, creating or supporting social projects that benefit the community, among other actions.
Environmental, social and governance practices can also be applied throughout the chain of suppliers with which a given company is linked. This is the vision of Edson Silva, president of the Nexxees Group, which invests in different companies and, since 2011, has published ESG reports.
“ESG can play a crucial role in empowering suppliers. By evaluating and selecting companies based on ESG criteria, a business can mitigate risks associated with environmental, social and governance issues in its supply chain. This helps ensure the continuity of operations and protects your reputation”, says Silva.
ESG has “multifaceted importance”
Other benefits of implementing ESG include innovation, competitiveness, sustainable growth, brand recognition and appreciation, says Silva. “The importance of ESG is multifaceted. Firstly, it aligns with the growing expectations of consumers, investors and regulators regarding corporate responsibility”, he adds.
In the executive’s opinion, it is up to companies to understand that issues such as sustainability and social responsibility should not be worked on in isolation, but collectively, ensuring that all links in the production chain are aligned with ESG practices and thus develop and grow together.
“When they adopt measures to ensure that their suppliers share similar values of sustainability and responsibility, companies not only strengthen their own operations, but also contribute to the sustainable development of the country as a whole”, concludes the expert.
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