Preparing companies for ESG practices is an irreversible path, say experts

The ESG theme (Social, Environmental and Corporate Governance, in free translation) is an irreversible path for companies, according to business sector experts who participated this Friday, 24, in the ESG Summit, promoted by Estadão. According to them, in addition to raising awareness about the impact of actions on the environment and communities, for example, the financial side also speaks volumes in companies, since, in addition to having better results when they are more responsible, investments and financial institutions, when granting loans, are already prioritizing enterprises that look more closely at the matter.

“There are always (companies and CEOs) more prepared and less prepared. But I don’t think anyone has any more doubts that we need to be prepared, it’s irreversible. This is because society has noticed and is demanding companies, even influencing products. Financing mechanisms prioritize ESG. If the CEO is not prepared, he needs to be sure that he needs to be”, explains the CEO of CBA, president of the Board of the Votorantim Institute and of the Board of Directors of Abal, Ricardo Carvalho.

Also at the event, the executive director and partner of the Energy practice of BCG Brasil, Arthur Ramos, added that, currently, strategies are not made without looking at ESG. Even though the work may not have a direct negative impact, the company needs to assess whether partners or grantees have the same care. “Every company increasingly investigates the license to operate. Are you a company that contributes to the environment? It is not carried out without thinking about governance and good decision-making processes. All of this affects the CEO and the boards,” he says.

Another point raised in the discussion on the subject was how profit should walk in balance with good business practices. “From the moment we focus only on profit and not on purpose, directors go only in search of profit and do not invest in ESG – which has a long-term return. Another CEO will reap what he sowed. But you have to understand that it’s part of the CEO culture. It’s thinking collaboratively”, says Marcela Argollo, partner at All For You and professor at FGV.

The CEO of Ambipar Environment, Cristina Andriotti, said that, at the time of acquisitions, the topic is a key point for negotiations. “In addition to reputation, we look at the governance of the company we acquire”. She added that it’s not just the long term that pays off – there are also faster effects for ESG-focused actions. “When you bring ESG to the company, the return on capital is immediate, with people, talent and preservation of the environment.”

The “battle” for talent was also something much discussed in the wake of ESG. This is because, according to Ricardo Carvalho, CEO of CBA, those who come to companies today are also concerned about how the impacts can reach society. “The fact that I am already involved in ESG is also a reason for attracting talent.” Arthur Ramos, from BCG Brasil, concluded that young people are very open to this topic. “The battle for talent is an essential battle.”

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