A certification can contribute to reliability and transparency in ESG indices

Why can a certification contribute to the reliability and transparency of ESG actions?

The global market sees the importance of monitoring and reporting on ESG risks and information every year.

Three letters that signify the commitment of organizations with the Environment (Environment); Social and Governance, and therefore with business sustainability.

The environmental issue has received full attention from organizations in the last 5 years, especially with the advent of COVID19, which latently demonstrated the effects of negative environmental impacts on the acceleration of pandemics and other endemics.

The way in which an organization’s information and environmental data are reported, voluntarily or due to legal obligations, to investors and consumers, plays a fundamental role in the image of transparency, reliability and sustainable commitment of the businesses and their brands.

CVM data indicate that the percentage of sustainable investments has grown in the last 2 years. ESG risk management has become part of the corporate and financial market strategies, pointing to a migration process from environmental issues to the universe of investments.

How to understand investors and offer them data for the best choice in a strategy that considers ESG parameters?

Investors want to promote sustainable investments, but at the same time they need to receive consistent, comparable and useful information regarding the decision and the risk of greenwashing.

Among the solutions for a clear, direct disclosure of ESG is the verification and voluntary review, by a qualified professional, external to the organization, of data and sustainability objectives.

The organization that submits itself to the external gaze demonstrates confidence in its good practices and the traceability of the information presented to the market.

It should be clarified that there are already companies and certifiers in the market capable of evaluating and certifying reports, including using the Green Seal.

When we talk about society, recent surveys show that eight out of ten consumers are making purchasing choices based on sustainability.

Nowadays, consumers demand that companies are also aware of what is happening around them, incorporating responsibilities that are not directly related to the development of their activity, but also to the problems that society faces, especially the generations that in recent years 20 years have come to the job market.

How to respond to this demand for guidance from the new consumer market? What does the new consumer really want?

The new consumer wants to understand the direct link between the processes and activities of organizations and sustainable commitments, especially socio-environmental ones.

Again, auditing, assurance and certification processes by external parties of recognized competence, authority in the area and with due impartiality can simplify information and at the same time promote sustainable awareness internally and externally to the organization.

It is worth investing in certifying processes with those who have independence and expertise. Intelligent choices of assurance and certification mechanisms give notoriety to the sustainable actions of companies, and at the same time traceability for the paths taken.

What does a certification body do?

When the organization chooses to be assessed by an external party, it immediately demonstrates to its stakeholders (investors, consumers, employees, suppliers, etc.) that it is committed to reporting the company’s indicators in a serious, reputable and in-depth manner.

A certifying body, validated by recognized organizations or entities, has evaluation procedures for ESG indicators, and in a special way, the growth in the market of evaluations linked to the environmental impacts of businesses stands out.

When validated by recognized bodies, such as INMETRO, or organizations such as the UN, certifications and assessments begin to present works of great technical quality, and at the same time of extreme independence and confidence.

It is essential to look in the market for those who propose to validate your evaluation and certification processes, this brings the certainty of the impartiality of the evaluation processes, “separating the wheat from the chaff”.

Some examples of Stamps on the market.

Implementation of the Environmental Management System (EMS) – ISO 14001 Certifiers

Certification for the use of natural resources, especially in buildings – LEED Certification.

For certification of Waste Management, or Circular Economy, or Zero Landfill – Ambipar Certification – Green Seal.

Where to start my certification and be a reference in ESG?

Here we can create a checklist with some items for download

How long does it take to get a certificate?

The time for a company to certify depends on a few important factors:

1 – Top management’s commitment to the indicators evaluated by the certification and need to be part of the company’s strategy;

2 – The expertise of the organization’s professionals to map critical points, organize controls and monitor indicators;

3 – The clarity of the mechanisms for dealing with adverse situations that could compromise the indicators;

4 – The involvement of interested parties (employees, suppliers, third parties) with the company’s ESG performance, and beyond that, with an awareness of the purpose to be achieved.

5 – The complexity of the company’s processes, as large companies with a greater environmental impact naturally require more controls and constant evaluations.

It is possible for a well-prepared organization to take between 2 to 6 months to obtain a Green Seal or other certification.

For the company to obtain a certification, planning is essential! Look for a certifier whose assessment topic considers the company’s main impacts on the market and the environment.

Associating your company’s name with a certifier, appraiser, recognized for its technical quality, independence and suitability means deviating from superficiality in reporting ESG indicators and having an open, detailed and specific process for validating sustainable practices.