One of the most prominent trends in the business world is ESG(Environmental, Social and Governance) practices. As environmental and social challenges increase, companies are under pressure to seek more sustainable development and help build a better future, together with the public sector and people from all corners of the world.
And what kind of actions are linked to these three important pillars? We've listed the initiatives that are on the rise and can contribute to your success. Check them out!
1. Responsible supply chain management
It is necessary to be increasingly aware of the impact of supply chains in social and environmental terms. To this end, it is worth establishing criteria when selecting suppliers, taking into account issues such as human rights, decent work, sustainable practices and respect for the environment.
To give you a brief idea of how urgent this is: around 30 billion tons of waste are generated worldwide every year. Water waste in Brazil alone amounts to the equivalent of 7,000 Olympic swimming pools a day. What's more, the average global temperature is rising and natural disasters are multiplying - just check the news. References like these show that we need to act as soon as possible!
Having a sustainable supply chain basically means seeking to reduce/optimize the consumption of natural resources, avoiding the waste of inputs, correctly managing the waste generated, as well as making your operations more transparent.
2. Carbon offsetting and net zero
Some time ago, the trend was to switch to renewable energy sources. This remains an important strategy, but as well as seeking to reduce their greenhouse gas emissions, the companies that are leading the way also have practical actions to offset their carbon footprint.
As a large part of emissions cannot yet be completely eliminated, seeking neutrality is a plausible way forward and demonstrates that the organization takes responsibility for the impact it causes. Offsetting involves investing in projects that capture quantities equivalent to the emissions generated by each company, such as environmental restoration initiatives allied to decarbonization and even the implementation of clean technologies in underprivileged communities.
3. Transparency and ESG reporting
Another notable fact in the ESG world is the growing demand for transparency of actions, which is usually solved with reports that gather data on what is practiced by each company. In this way, investors, consumers and stakeholders can access this type of information to make their decisions.
The fact of having an ESG report is already a positive sign, as it means that there is an intention to evolve in this direction and a plan is being put into practice. Although the aim of the document is to highlight successes, it is clear that the journey also includes challenges and goals that have often not yet been achieved. In any case, this is an important instrument for standing out in the G pillar (of governance) and better structuring the organization in relation to corporate responsibility.
4. Diversity and inclusion
More than ever, diversity and inclusion are in the spotlight and continue to be ESG trends. The market is recognizing that diverse teams not only bring different perspectives, but also improve innovation and decision-making. They are therefore striving to create healthy and inclusive work environments where everyone feels valued. This includes both the representation of different ethnic, gender and cultural groups and the creation of policies based on equal opportunities for growth and development.
In short, ESG trends are transforming the way companies operate and interact with the world around them. Carbon offsetting, along with other ESG practices, is becoming a key strategy in the quest for a more sustainable future. By adopting these trends, companies contribute to the health of the planet and strengthen their reputation, proving their ability to adapt to a constantly evolving business environment.
How about building your decarbonization journey and having access to a customized ESG report? If you're looking for this solution for your business, get in touch with us.
