Do you know how important ESG data is to your business and to the world?
The use of ESG (Environmental, Social and Governance Sustainability) analysis technologies is growing rapidly as a method to evaluate the sustainable development of organizations. This data provides insight into an institution’s practices and outcomes, enabling the study of how it operates on issues of ethics and accountability.
The Securities and Exchange Commission has ruled that, starting in 2023, Brazilian companies listed on the stock exchange must present indicators related to the social sphere, such as information on employee diversity. Public reports must also include an inventory of greenhouse gas (GHG) emissions.
As a result, an increasing number of companies have begun to consider adopting sustainable practices. According to a survey by the Associação Brasileira de Comunicação Empresarial, 95% of Brazilian organizations have already prioritized ESG factors, which confirms the importance this theme has acquired in recent years.
Improve your company’s performance
By using ESG data, it is possible to obtain valuable information on environmental, social and governance performance. These elements, together with traditional financial information, allow for a better understanding of the company’s performance.
Investors can also benefit from using this data, using it to make assertive decisions about where and how to invest. An Ernst & Young study found that 99% of executives use companies’ ESG information as part of their decisions, as it can provide predictions about which organizations and sectors have the greatest potential for return on investment, for example.
ESG analysis can also be used to identify systemic issues relating to the problem at hand that cannot be easily resolved through financial mechanisms. Such research can help companies identify opportunities within their sectors and develop more inclusive solutions with a focus on social responsibility.
With the adoption of increasingly widespread ESG practices, the use of data allows companies and investors to better evaluate their performance, allowing them to make more assertive decisions that take into account environmental, social and financial factors. This ensures that companies achieve success in business while maintaining a commitment to social and environmental responsibility.
João Paulo Tavares is Latam Presales Director of Semantix.
Source: Terra
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
