In the current corporate scenario, the adoption of ESG (Environmental, Social, and Governance) practices has become increasingly important for Brazilian companies. In addition to ensuring a positive image with consumers and investors, implementing ESG initiatives can generate financial benefits and reduce legal and operational risks. However, it is not just a question of reputation: companies are also committing themselves to the goals of the Sustainable Development Goals (SDGs) established by the United Nations (UN) in 2015, which aim to promote sustainable development in global scale.

In Brazil, several companies are investing in initiatives aimed at environmental sustainability, social inclusion and ethical governance. In the environmental area, companies such as Natura and Ambev are adopting measures to reduce their carbon footprint and minimize the impact of their activities on the environment.

Success Stories Place Brazil in the World Outstanding in ESG

Brazilian cosmetics company Natura is one of the leading ESG companies in Latin America. The company, founded in 1969, has a long history of commitment to environmental sustainability, social inclusion and ethical and transparent governance. Regarding environmental sustainability, Natura has adopted measures to minimize the impact of its operations on the environment. The company uses natural and organic ingredients in its products and invests in clean and renewable technologies. In addition, Natura has ambitious goals for reducing greenhouse gas emissions and waste management. With regard to social inclusion, Natura has a diversity and inclusion policy in its value chain. The company works in partnership with local communities, cooperatives and small producers to promote sustainable economic development. The company also has a policy of including people with disabilities, being recognized as one of the best companies to work for in Brazil. As for ethical and transparent governance, Natura is committed to transparency in its operations: the company publishes annual sustainability reports, and has clear policies regarding business ethics, combating corruption and preventing conflicts of interest.

Natura's success in ESG has been recognized internationally. The company was included in the list of the most sustainable companies in the world by Corporate Knights magazine, and was also recognized as one of the most ethical companies in the world by the Ethisphere Institute. Furthermore, Natura became the first cosmetics company to issue a green bond in the international market, demonstrating its commitment to economic and environmental sustainability. In 2020, the company became the first in the cosmetics industry in the world to have its carbon footprint certified by the Carbon Trust, a British organization that provides sustainability consultancy. Recently, in 2023, the cosmetics company achieved, for the ninth consecutive year, first place in the Corporate Reputation and Leaders Ranking, promoted by Consultoria Merco. All these factors make Natura an example of a company that stands out for its effective compliance with ESG practices in Brazil and Latin America. Its commitment to environmental sustainability, social inclusion and ethical and transparent governance has been critical to the company's success and positive reputation.

Ambev – a Brazilian beverage company and considered the largest beer manufacturer in the world – invests in renewable energies to reduce its greenhouse gas emissions. In 2019, the company inaugurated the largest wind farm in the private sector in Latin America, which contributed to reducing the emission of greenhouse gases from its operations by 30%.

In the social area, companies such as Magazine Luiza (a company in the retail sector) and Banco Bradesco invest in inclusion and social responsibility initiatives. Magazine Luiza adopted a racial inclusion policy aimed at increasing the presence of black people in leadership positions at the company. The initiative was recognized by the World Economic Forum as one of the top 10 examples of business leadership for racial inclusion. Bradesco, in turn, invests in social initiatives through its Foundation, which has already benefited more than 5.5 million people across the country. The financial institution also has volunteer programs, which allow its employees to get involved in social causes.

In the area of corporate governance, companies such as Petrobras (the state-owned Brazilian oil company with a mixed economy) and Vale (a Brazilian mining company considered one of the largest in the sector in the world) have adopted measures to ensure transparency and ethics in their operations: Petrobras adopted measures to improve its governance after the corruption scandal revealed by Operation Lava Jato, a fact of recent political history in Brazil. The company created an audit and risk committee and implemented transparency and compliance policies to ensure the integrity of its operations. Vale, on the other hand, invests in initiatives to ensure the safety of its operations and reduce the risk of accidents, as happened in 2019 with the rupture of the dam in the city of Brumadinho, in the State of Minas Gerais, Brazil. After the accident, the company created an independent committee to monitor its safety practices and implemented measures to improve risk management in its operations.

In addition to these companies, other Brazilian organizations are also committing to the SDG targets. B3 – the Brazilian stock exchange – launched a responsible investment platform that encourages listed companies to adopt ESG practices. According to a study by the PwC consultancy, 70% of Brazilian companies state that the implementation of ESG practices is a strategic priority for the coming years. This indicates that more and more organizations are realizing the importance of adopting a responsible attitude towards the environment, society and governance.

Brazilian Companies Committed to ESG Practices Contribute to Achieving the Goals of the SDGs and NDC in Brazil

Brazilian companies committed to ESG practices are contributing to the achievement of the Sustainable Development Goals (SDGs) of the United Nations (UN), including the goals defined in Brazil's Nationally Determined Contribution (NDC). .

The NDC is a commitment by Brazil to reduce greenhouse gas emissions by 43% by 2030 from 2005 levels. Some of the SDG targets that Brazilian companies are helping to achieve in Brazil's NDC are:

– Clean and Affordable Energy (SDG 7): Companies such as CPFL Energia and Neoenergia invest in clean energy sources, such as solar and wind, contributing to increasing the country's renewable energy generation capacity. These companies have also been working to increase access to electricity in remote and low-income areas.

– Sustainable Industry, Innovation and Infrastructure (SDG 9): Companies such as Ambev have adopted innovative technologies and sustainable production processes, reducing the environmental impact of their operations and promoting energy efficiency. In addition, logistics companies such as Rumo invest in sustainable infrastructure, such as the use of more efficient locomotives and the modernization of ports, reducing greenhouse gas emissions in the transport of goods.

– Action against Global Climate Change (SDG 13): Companies such as Natura and Braskem have established ambitious goals to reduce greenhouse gas emissions and adopted measures to minimize the environmental impact of their operations. In addition, companies such as Suzano invest in low-carbon technologies in the production of pulp and paper.

These are just some of the many initiatives led by Brazilian companies committed to ESG practices that contribute to achieving the goals of the SDGs and the NDC in Brazil, but which prove that sustainable practices by companies are fundamental for building a greener economy and fair, that promotes human development and the preservation of the environment.