Sonia warns of the need to relate ESG to business strategy – Photo: Disclosure
The relationship between the ESG agenda and the reputation of companies and leaders is direct, a path of no return when it comes to securing strategic assets, whether investments, talents or public preference. For this reason, it is important to know how these themes are being prioritized in the face of economic issues that are knocking on the door of organizations.
“ESG will continue to be an important agenda, even if it suffers a change of direction or speed”, says journalist and consultant Sonia Consiglio, author of the book #vivipraver – A História e as Minhas Histórias da Sustentabilidade ao ESG, launched in 2021.
More than an enthusiast of the corporate world's adherence to sustainability causes, Sonia has experienced the evolution of ESG on the corporate agenda from the inside, working in large companies, in Rede Brasil do Pacto Global and in B3. In his assessment, it is increasingly necessary to reconcile ESG with business in a realistic way. He also understands that a transformation of the model is underway and that whoever ignores the change runs the risk of not being able to operate in the medium term.
“Sustainability is not about hugging a tree, but a business issue”, reinforces Sonia, who answered a series of questions proposed by the Reputation Feed. Below is a summary of the main points of the interview.
ESG IS FOR ALL BUSINESS SIZES
“The biggest challenge to advance the sustainable agenda is knowledge. Leaders need to be sensitized and educated about the importance of the ESG agenda, the value it adds by involving environmental, social, governance and economic-financial issues. Sustainability is not tree hugging. It is a question of business, of business survival, of strategy, of mitigating risks, of generating economic value.
Don't think that this is an agenda for big companies. Start simple: selective collection, conscientious consumption of resources. Keep walking, seeing supplier engagement, internal practices – in other words, get the engine running. From there, you need the support of a specialist, guidance, but this is the moment when you start to move forward.”
"Why does it have to be part of the strategy? Precisely for the company to have perpetuity.”
WE LIVE IN A MODEL TRANSFORMATION
“The company does not give up profit when it implements a socio-environmental agenda. We've come a long way on this point. What we are experiencing is a transformation of the model, which needs to integrate all these aspects. So why does it have to be part of the strategy? Precisely for the company to have continuity. Those who do not look at issues of climate change, social issues, equality, diversity, etc., run the risk of not being able to operate in the medium term. Increasingly, pressure from all stakeholders is for consistent action on the ESG agenda.”
“We know about the ups and downs of agendas in companies. If those events affect the larger goal – like 'I don't think I'm going to deal with these issues anymore' – then you have a problem. But that is not what is happening. Even in adversity, companies remain focused on ESG.”
FOCUS MAINTAINED, EVEN IN ADVERSITY
“External conflicts and inflationary environments affect companies as a whole. The impact on sustainability issues depends a lot on how the company works on the ESG agenda. If it is strategic, aligned with the business, part of the plans, of the business, this agenda will be affected to the same extent as the business projects. If the company works with sustainability as an addendum, as an area that has projects and these projects are not yet connected with the organization's strategy, it may be that some projects are placed on hold.
Often, you have to park some things, take a break, come back at a more appropriate time. The important thing is not to lose direction. We know about the ups and downs of business agendas. But if those events affect the larger goal – like 'I don't think I'm going to deal with these issues anymore' – then you have a problem. But that is not what is happening. I see that, even in adversity, companies remain focused on ESG.”
S OF SOCIAL, THE MOST CHALLENGING
“The representation of ESG themes in three letters is more for a didactic purpose. It is always very important to have a cross-cutting look at these issues. We can never settle down and think that we have good governance. You have to be attentive, do benchmarks, understand trends, observe cultures a lot, notice blind spots, weaknesses, propose improvements. There, yes, theoretically, there is more protection against crises, whatever they may be, and not just confidence.
A company with a direct environmental impact certainly has to look very intensely at environmental issues. A service company needs to pay very close attention to people and social issues. After the pandemic, we saw a great need to look at the S of ESG, of social, for obvious reasons. We are much more vulnerable, we deal with health issues, inequalities have increased. OS is today the most challenging for corporate leaders.”
DIVERSITY, ESSENTIAL FOR REPUTATION
“Accelerating diversity in companies, with actions that strengthen reputation, depends on each case. It is very difficult to give a ready-made recipe for this. The important thing is the relevance of the diversity agenda. That the company genuinely understands that diversity, in addition to being the right thing to do, adds value. Speed passes through there, through knowledge and leadership. How this will happen depends a lot on the company, the culture, the moment, the strategies. If there is knowledge and leadership, without a doubt, this agenda will happen. Companies are being called to act, and the market is rewarding and punishing them according to their performance in diversity. This is an absolutely relevant item for reputation and image.”
Clovis Malta is a journalist
