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Writer's pictureBeto Sporkens

Why invest in ESG practices?


In times of COP 26 (the 26th United Nations Conference on Climate Change), “ESG” is the acronym that has most ruled business. This term refers to environmental (Environmental), social (Social) and governance (Governance) factors that are integrated (or not) into a company's activities.

Good ESG companies are those that have their operations aligned with the best environmental, social and governance practices. In practice, this means that they emit little carbon, foster racial and gender diversity and do not engage in corruption, for example.

To gain value in the market

The number of startups dealing with the subject rose from 23 in 2000 to 740 in 2020! As well as around the world, companies around here have been more concerned with following the sustainability guide, adopting environmentally and socially correct practices and following all governance standards.

The funds that invest in companies with social, environmental and governance concerns totaled in July 2020 approximately R$540 million; in December, this value jumped to almost R$ 818 million, and in January of this year, it surpassed R$ 1 billion (Source: Ambima).

In early 2021, the National Treasury announced that it was studying the issuance of public bonds with the ESG seal, with the aim of once again attracting the interest of foreign investors in the Brazilian public debt. To give you an idea, the participation of this category in the area fell from 18.79% in December 2015 to 9.24% in 2020.

Since its creation in 2005, ISE B3 has returned +294.73% against +245.06% for the Ibovespa (the Brazilian stock exchange).


Fonte: https://ore.org.br/

Simply put, it's like a score, which involves items from these specific areas:
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Companies (and the market) are realizing that their Corporate Social Responsibility and Social Impact programs are fundamental to securing investments, particularly on environmental and social issues. And while ESG actions can serve marketing area, you need to separate things well. It has even created a pejorative term for companies trying to force a process of "seeming, not being" or exaggerating their achievements: it's called 'Greenwashing'.

Some seals and certifications may even be important, but ESG practices need to be observed from an absolutely holistic perspective, such as a genuine and long-term culture change in favor of nature and collectivity that can even contribute to good financial results.


To be more competitive for Consumers

A recent survey by McKinsey consultancy revealed that 85% of Brazilians say they feel better buying sustainable products. A global poll also shows that 97% of respondents expect brands to solve social problems. This is a global trend, also observed in Europe, Asia and North America.


For a better Future

Anyway, who can defend that a more polluted, corrupt and unequal world can do better?

ESG actions are there to show that the public is paying attention to what companies do to survive and profit. Why is spending the least amount of water, seeking clean energy sources and respecting ethics and rights fundamental for companies?

BECAUSE IT'S CORRECT. THAT WOULD BE ENOUGH.


Knowledge, Technique and a few million impacted

If your company is investing in an ESG plan, it is important to seek an expert partner to help communicate and publicize them. Imagica is a specialist in the development of content, VIDEOS (click and watch some examples) and presentations related to social and environmental issues since before the acronym ESG was used, serving some of the biggest players and references in the sector around the world, and generating content that has already impacted millions of people.

If your company wants to show the world your contributions, get in touch and request a presentation of our cases so you can see how YOUR case can also become successful content and an excellent advertisement.

See you soon!

















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