ESG AND ITS IMPACT ON COMPANIE’S FINANCE RESULTS.

The time companies only needed to worry about profitability is gone. The time where selling more and more was the only way to value business is gone. The climate emergencies imposed to humanity new challenges indeed, but also the opportunity to grow and find leadership. Sustainability, social responsibility and ethics are essential to amplify business, gain market and produce value.

por NTICS | 5 de April de 2021

That’s why ESG was created, a set of environmental, social and corporate governance factors that can be used to guide investments and consumption choices focused on sustainability.

ENVIRONMENT: the use of renewable energy, impact of traditional communities, management of wastage and hydrous resources, pollution control and CO2 emission of each company would be evaluated by investors, market and final consumer.

SOCIAL: how company manages their relationship with the public and their chain of suppliers, collaborators valuing, inclusion and education programs add value.

GOVERNANCE: company leadership, environmental risk control, guarantee of employees rights, shareholders, consumers and other stakeholders are valuable assets.

The ones who think this is only a plan are widely mistaken.

ESG is used as a type of metric to guide business good practices, in order to capture investments. Some aspects observed are social and environmental impacts of the supply chain, carbon emission, wastage and residues from a determined activity management, labor issues and the inclusion of workers, and accountability methodology. All of this gains strength inside a context in which big companies have their shares listed on stock exchange and there are requests from their shareholders and investment funds for practices that assures the survival of the company on the long path. That’s why the most valuable companies on stock exchange worldwide are the ones that focus the most on sustainability.

Large institutions have interest in the profitability of companies in which they are shareholders and, for this, investors started to raise the requirements for the adoption and disclosure of business practices based on ESG. The lack of environmental commitment is seen as a growing risk to the sustainability of the financial global system, not only for the forests and oceans. Companies and investors that are more attentive already noticed that the survival of their business intimately depends on the continuity of the human species, threatened by the climate emergencies.

At the same time, the small investors, which are more and more common on the stock exchange, are eyes wide open, verifying ESG reports and strategies adopted by companies to choose and intensify their contributions. For the ones who worry about the environment, and insist on creating an ethical and equal society, ESG reveals to be a good way to follow governance and sustainability practices of corporations, verifying if the values which it stands for and the practice corresponds to their own.

Rises a new business model, especially on companies of open capital, in which their performance on ESG criteria can make all the difference for market value, besides influencing shareholders voting and its sale. Profit more who thinks about the quality of a certified raw material, choose clean suppliers, values collaborators, invest in reverse logistics and recycling. The business longevity depends on the planet’s sustainability.

Do you want to understand how your company can be more participatory in the development and social responsibility movement? This initiative increases ESG rates with a focus on Social, proving that the company is truly engaged with sustainability. Get in touch and discover alternatives to work for a purpose.

Whatsapp | E-mail: contact@nticsprojects.com | Phone +1 (407) 258 3604

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