What does ESG, an increasingly popular acronym, mean?

What is ESG?

Briefly, it is an acronym, in English, for environmental, social e governance, which represents a set of environmental, social and governance actions carried out by companies. 

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In the environmental field, the acronym “E”, environmental, includes:

• Climate change; 
• Deforestation;
• Pollution;
• Use of natural resources;
• Biodiversity.

No social, the acronym “S” represents:

• Human and labor rights;
• Inclusion and diversity policies;
• Impact on the community;
• Encouragement of professional qualification;
• Employee satisfaction.

In governance, the acronym “G” for governance involves:

• Fiscal transparency;
• Anti-corruption actions;
• Efficient and inclusive management;
• Disciplinary conduct.

Popular ESG

A study carried out in September this year by the Google, MindMiners and Sistema B Brasil with 3 thousand people, shows that the ESG has become very relevant, both for companies, in their business quality marketing and for consumers, who want to know the positioning and reputation of the brands they consume. 

Although only 1 in 5 Brazilians (21%) have heard of the acronym ESG, according to the survey, 4 out of 5 (87%) declare the role of companies and brands in actions related to the environment, social panorama e governance. 

According to the study, 47% of respondents were unable, spontaneously, to associate brands with themes ESG.

The same report indicates how consumers expect brands to be transparent about the impact of their actions on communication channels, support NGOs and movements that work on relevant issues and develop media campaigns that generate awareness and income for social projects.

From the study, it was possible to conclude that, by positioning your brand and generating value from themes ESG, the company will increase purchase intention and emotional connection with the consumer.

Curto curation:

• ESG: what is it, advantages and how to implement it? (Medium & Message);
• Understand what ESG is and why the acronym is important for companies (Valor Econômico 🚥);
• Investors deliver on ESG commitments for a greener future (Financial Times*)

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