Valor Econômico by Gabriela da Cunha - 06/12/2023
By Writing Team
Posted in June 26, 2023
The 2022 ESG Integrity Yearbook, published by Insight Comunicação, provides an overview of the ESG practices of 100 companies across eight sectors.
Between 2020 and 2022, searches on the internet for the term ESG (Environmental, Social, and Governance) in Brazil increased by over 1,200%, according to Google Trends data. However, these searches are not solely focused on understanding the acronym’s meaning. There is a growing interest in what companies, especially those listed on stock exchanges, are doing regarding the topic. Now, a publication analyzes and summarizes the projects and corporate investments related to environmental, social, and governance issues and how these initiatives have impacted the reputation and image of 100 Brazilian companies.
The 2022 ESG Integrity Yearbook, published by Insight Comunicação, provides an overview of the ESG practices of 100 companies, including those listed on the stock exchange. One of the survey’s results shows that initiatives are concentrated in a few companies.
The 11 standout companies, in order of ranking, are: Ambev, Suzano, Gerdau, Bradesco, Itaú Unibanco, Santander, Banco do Brasil, Ambipar, B3, Natura and Raízen, with 90% of the initiatives and projects evaluated with a positive sentiment. These highly reputable ESG companies account for one-third of the actions related to environmental, social, and governance agendas that have made news in the media.
To achieve these results, the survey created an indicator based on information collected from search tools with ESG acronym citations and media monitoring data from Knewin Data Intelligence. Using this structured foundation, artificial intelligence conducted sentiment analysis. After cross-referencing, the ESG Image Index (iESG) was calculated for each company.
In the comparative analysis, the top 19 companies account for 51% of ESG mentions in the country’s media, with Petrobras leading the corporate theme. However, Petrobras only had 64% positive publications, compared to 36% negative ones.
Ambev is the Brazilian company with the best ESG reputation according to the study’s criteria. The company obtained the highest score in iESG among all evaluated corporations. The overall performance includes not only environmental practices but also social commitments and structural projects in its operation and governance.
Banks and ESG
The report highlights the significant presence of financial institutions at the top of the overall ranking, with four out of the top seven positions.
Bradesco took the lead in the financial sector ranking. Based on the adopted metrics, the institution stood out throughout 2022 as the bank with the highest degree of ESG adherence, being the first to commit to balancing carbon emissions from its credit portfolios and investments and implementing a series of measures in other business verticals.
In terms of sectors with high visibility in the ESG agenda, the Pulp and Paper industry is the highest-rated. The sector has a positive perception rate of 99.3%. Additionally, the two main companies in the sector, Suzano and Klabin, rank 2nd and 19th, respectively, in the overall ranking.
Following the Pulp and Paper sector are Banks, Food and Beverages, Oil, Gas, and Derivatives, Mining and Steel, Retail, Electric Power, and Cosmetics.
In the Oil and Gas sector, one of the most criticized industries due to its direct and aggressive impact on the environment, Raízen takes the top spot for its practices indicating an integrated vision in terms of business models and the development of technologies that can influence the energy transition.
