10/1/2020
Due the urgency of the sustainability challenges that the world is facing, especially aggravatedby COVID-19, there is an increase in discussions involving ESG (Environmental, Social and Governance) indicators and their contribution to the preservation of the environment. Such discussions point to the adoption of the ESG as an effective tool for achieving the UN Sustainable Development Goals – SDGs [1], thus understood as one that meets current demands without compromising the ability of future generations to meet their own needs.
Although there are major differences in implementation in developed and developing countries, in large companies and incipient businesses, and the criteria for meeting ESG goals and indicators (including environmental issues) are lacking in standardization, there is a material market extremely relevant for the implementation of a robust and structured socio-environmental policy.
Outside, there are several regulatory instruments used by organizations to report ESG indicators, with a focus on the environment.
Among them, we highlight:
- United Nations Global Compact;
- Sustainability Accounting Standards Board (SASB);
- International Integrated Reporting Council (IIRC);
- Global Reporting Initiative (GRI – G4);
- International Standards Organization (ISO 26000);
- China State-Owned Assets Supervision and Administration Commission, Directive;
- Climate Disclosure Standards Board, The CDSB Reporting Framework;
- U.S. Securities and Exchange Commission, Interpretive;
- Commission Guidance Regarding Disclosure Related to Climate Change.
In Brazil, the B3 adopts the Corporate Sustainability Index (ISE), a tool for comparative analysis of the performance of companies listed on B3 under the aspect of corporate sustainability, based on economic efficiency, environmental balance, social justice and corporate governance.
ISE broadens the understanding of companies and groups committed to sustainability, differentiating them in terms of quality, level of commitment to sustainable development, equity, transparency and accountability, nature of the product, in addition to business performance in the economic- financial, social, environmental and climate change.
Regardless of the regulations adopted by the organization for the implementation of its policy, the main issue still refers to the integrity of a solid and effective program, the consistency of the information provided and the support of the data presented, all in line with the ultimate objective of effective environmental preservation and development concrete, supported by the ESG pillars.
Our team is available to assess clients in relation to development of policies, implementation of strategies and risk management for the achievement of the excellence standards of the ESG process.
Coauthors: Renata Castro Veloso and Rebecca Maduro
