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ESG Commitment
Understand what ESG is and learn about the practices adopted by companies in the social, environmental and governance areas.
ESG Commitment: importance, practices and benefits
ESG practices and targets are increasingly gaining traction and being adopted by companies that are concerned about building a more sustainable future for generations to come. This trend reflects a significant change in the way these institutions perceive their role in society and allows them to assess their impact on the environment.
What is ESG?
ESG stands for Environmental, Social and Governance (ASG). The acronym has been used more frequently in recent years, including in Brazil, and refers to the practices adopted by companies to assess how they are performing in relation to sustainability and social responsibility actions.
What are the three pillars of ESG?
The letters in the ESG acronym stand for three basic principles that companies should consider:
Practices that contribute to the environment, working on issues such as biodiversity, deforestation, global warming, air and water pollution, among others.
Processes linked to strategies and guidelines for company administrations, such as anti-corruption practices, reporting channels for cases of harassment, discrimination, data transparency, etc.
Ações voltadas à responsabilidade social, como direitos humanos, leis trabalhistas, relacionamento com a comunidade local, proteção de dados etc.
Practices that contribute to the environment, working on issues such as biodiversity, deforestation, global warming, air and water pollution, among others.
Processes linked to strategies and guidelines for company administrations, such as anti-corruption practices, reporting channels for cases of harassment, discrimination, data transparency, etc.
How and when did ESG come about?
ESG was mentioned for the first time in the report "Who Cares Wins", produced by the United Nations (UN) Global Compact, in partnership with the World Bank, in 2004. The document was drawn up after the then UN secretary-general, Kofi Annan, asked 50 presidents of large institutions to implement good environmental, social and corporate governance practices internally.
Check out Neoenergia's ESG commitments
