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ESG Agenda in Brazil: The Convergence of Sustainability, Technology, and Regulation

The Brazilian corporate landscape is constantly evolving, particularly concerning the growing importance of environmental, social, and governance (ESG) considerations. The intersection between the need to adopt sustainable practices and the technology to facilitate this adoption is redefining business. In this context, the role of SAP solutions, with the support of experts like TrustSis Consultoria, is invaluable.

The term ESG was coined in 2004 in a publication by the Global Compact in partnership with the World Bank, called Who Cares Wins. It emerged from a challenge by UN Secretary-General Kofi Annan to 50 CEOs of major financial institutions on how to integrate social, environmental, and governance factors into capital markets


Seção Environmental do ESG com a letra 'E' destacada em um fundo verde e a palavra 'Environmental' ao lado, acompanhada de um ícone de árvore.Environmental (E – Environmental):The environmental pillar of ESG focuses on how companies impact the environment. This includes issues such as reducing carbon emissions, efficient resource management, waste management, biodiversity conservation, and climate impact. Companies committed to environmental ESG generally seek sustainable practices, green innovation, and transparency regarding their environmental goals and results.


ESGSocial (S – Social): The social pillar encompasses companies’ interactions with society at large, their employees, customers, and communities. This involves aspects such as workplace diversity and inclusion, workers’ rights, occupational health and safety, community relations, philanthropy, and social engagement. Companies that take social ESG seriously are committed to creating fair, safe, and inclusive work environments and also contributing positively to society as a whole.


ESGGovernance (G – Governance): .The governance pillar refers to a company’s leadership structure and decision-making processes. It includes issues such as the composition and independence of the board of directors, corporate ethics, financial transparency, regulatory compliance, and risk management. Companies with good governance are generally more stable, responsible, and capable of creating sustainable long-term value for all stakeholders.


ESG in Brazil: More Than a Trend, a Necessity

The understanding and applicability of ESG criteria by Brazilian companies are increasingly becoming a reality. Acting in accordance with ESG standards enhances the competitiveness of the business sector, both domestically and internationally. In today’s world, where companies are closely monitored by their various stakeholders, ESG signifies solidity, lower costs, better reputation, and greater resilience amid uncertainties and vulnerabilities.

The recently released Panorama 2024 Survey by AMCHAM underscores the importance of ESG and technology, especially artificial intelligence, in shaping the future of Brazilian businesses. With ESG currently regarded as the second most important topic for companies, the Brazilian market is redefining its paradigms, seeking a balance between economic development and socio-environmental responsibility.


The Role of Regulation: Preparing for a Sustainable Future

Brazilian legislation, through laws such as the Forest Code and the National Policy on Climate Change, has indicated the direction to follow. On the global stage, agreements like the Paris Agreement reflect larger commitments. Companies that anticipate and adapt to these regulations not only ensure compliance but also stand out as leaders in sustainability.

National Solid Waste Policy (Law No. 12,305/2010): Establishes principles and guidelines for solid waste management, promoting companies’ environmental responsibility.

National Climate Change Policy (Law No. 12,187/2009): Establishes guidelines for the development of public policies aimed at mitigating and adapting to climate change, impacting companies in terms of emission reports and sustainability.

Anti-Corruption Law (Law No. 12,846/2013): Holds companies accountable for acts of corruption, encouraging the adoption of ethical and transparent governance practices.

General Data Protection Law (LGPD) (Law No. 13,709/2018): Establishes criteria applicable to the security and protection of data related to customers and third parties in companies’ activities.

CVM Resolution 59/21: Institutionalizes regulatory norms and procedures for publicly traded companies regarding the adoption of ESG practices (for publicly traded companies to communicate their information to the market considering the integration of ESG aspects).

Paris Agreement: Brazil is a signatory to this international agreement, committing to reducing carbon emissions, which pressures companies to consider emission reduction strategies in their operations.


SAP Solutions: Digital Catalysts for ESG Transformation

The journey to full ESG integration is complex and multifaceted. Here, SAP solutions present themselves as indispensable tools:


Infográfico sobre como orientar-se em práticas ESG. Texto no lado esquerdo descreve os desafios da agenda ESG nas organizações, destacando a TrustSis Consulting como provedora de soluções tecnológicas especializadas. No lado direito, uma tabela com três colunas marcadas como E (Environmental), S (Social) e G (Governance), listando soluções como SAP Sustainability Control Tower, SAP GRC Risk Management, SAP GRC Process Control, SAP GRC Access Control / IAG, SAP Privacy Governance, SAP Business Integrity Screening, SAP Analytics Cloud e SAP BTP (Business Technology Platform). Imagem de um prédio com vegetação à esquerda.

Figure 1: Overcoming the CHallenges of the ESG Agenda in Organizations

  • SAP Sustainability Control Tower: Provides a holistic view of corporate sustainability by integrating data from various sources and generating insights that guide effective sustainable actions.


  • SAP Privacy Governance: In an era dominated by data, privacy protection is crucial. This solution not only ensures compliance with regulations such as Brazil’s LGPD but also establishes trust with stakeholders.


  • SAP Business Integrity Screening: Leveraging AI, this solution identifies and predicts potential irregularities, ensuring that business integrity remains intact.


  • SAP SAC (SAP Analytics Cloud): By centralizing business data, SAC enables comprehensive analysis, facilitating decisions aligned with ESG objectives.


  • SAP GRC (Governance, Risk, and Compliance): This solution consolidates key aspects of governance, aligning strategy, risks, and compliance under the ESG banner.


  • SAP BTP (Business Technology Platform): Provides technologies and solutions that enable organizations to measure, monitor, and improve their performance on ESG issues.


The ESG agenda in Brazil is a promising combination of responsibility, innovation, and opportunity. With the right technology, regulatory guidance, and the expertise of partners like TrustSis Consultoria, Brazilian companies are well-positioned to lead a sustainable revolution.


Pacto Global – https://www.pactoglobal.org.br/pg/esg

PESQUISA PANORAMA 2024 | AMCHAMhttps://conteudo.amcham.com.br/panorama-2024#rd-section-ljg10d3g


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