And although ESG factors are a growing concern among organizations around the world , so that businesses continue to demonstrate value to investors, there are also experts – who form a group of ecosocialists – who argue that the sustainable development model is incompatible with the capitalist system. During the 1980s and 1990s, accelerated globalization contributed to societies experiencing some economic growth. At that time, disregarding socio-environmental risks was the right thing to do, since the goal was high profits.
However, sustainable development and equitable growth have latvia mobile database not been a reality, contributing to social inequality and worsening environmental imbalance. Hence the concern of these groups interested in separating the image of sustainable development from financial gains.
For James Gifford, one of the creators of the term, ESG is a path of no return. It is no longer just about ethics, but also about considering issues such as climate change and sociopolitical risks, says the economist. This is where issues related to social issues and governance come in. ESG criteria are fully interconnected with the “17 Sustainable Development Goals (SDGs)”, proposed by the UN , and go far beyond reducing the emission of gases that can affect the ozone layer.
But after all, what are the good practices linked to each of the letters in the acronym?
Environmental (E)
The letter “E” refers to the word environmental, which means environmental. Among the actions planned for environmental protection, the following stand out: reducing the impact of air and water pollution; reducing gas emissions; using raw materials responsibly; prohibiting illegal deforestation; consuming water responsibly; reusing water and implementing recycling; adopting clean and renewable energy; and preserving biodiversity.
Social (S)
The letter “S” stands for social, in English and Portuguese. Social actions are those in which the company aims at collective well-being, in addition to valuing the safety and rights of employees. Some examples of social measures are: compliance with labor laws; implementation of diversity and inclusion programs; combating child labor or slavery; employee health care; protection of sensitive data; training and implementation of security measures; development of social projects; and channel for communication between employees and leadership.