ESG: Does your company really need this strategy?

In recent years, the term ESG (Environmental, Social, Governance) has become one of the most discussed in the corporate world. But do all companies really need to adopt this strategy? Or is it just a passing trend driven by the market and stakeholder pressure?

ESG: Opportunity or Obligation?

With consumers more aware, investors demanding transparency, and governments tightening regulations, ESG is no longer a choice and has become an essential factor for competitiveness. Companies that do not adapt can lose market share and face difficulties in accessing investments.

However, implementing ESG requires structural, cultural, and financial changes. Not all companies are prepared for this transformation – and the question that arises is: does ESG make sense for your business?

ESG and Brazilian Legislation

Currently, in Brazil, there is no legislation that makes the adoption of ESG practices mandatory for small and medium-sized enterprises (SMEs). However, publicly traded companies are already subject to regulations, such as Resolution No. 193 of the Brazilian Securities and Exchange Commission (CVM), which requires the disclosure of sustainability reports as of 2026. In addition, adherence to ESG can be encouraged indirectly, through requirements from large companies in the supply chain and financial institutions that prioritize businesses with good environmental, social, and governance practices.

While small and medium-sized enterprises are not legally required to follow ESG guidelines, implementing these practices can bring competitive advantages such as improved access to finance, brand strengthening, and increased operational efficiency.

When ESG is a Necessity

If your company faces any of these situations, considering ESG can be strategic:

• Market and customer pressure – Today, consumers are increasingly aware of companies' practices. An example of this is the growth in the market for sustainable products, such as vegan cosmetics and organic food, which attract customers willing to pay more for brands with sustainability-aligned values.

• Search for investors and financing – Many investment funds and banks already use ESG criteria to evaluate companies before granting credit. Companies that demonstrate commitment to good governance and sustainability practices, such as the adoption of clean energy or social inclusion policies, can achieve better financing conditions and easier access to capital.

• Image and reputation risk – Companies that ignore ESG run the risk of reputational crises, such as boycotts or negative publicity. Cases of slave-like labor or serious environmental impacts have already damaged several brands, resulting in loss of customers and lawsuits.

• Cost reduction and efficiency – Investing in energy efficiency and waste reduction not only improves the sustainability of the business but also reduces operating costs. Companies that adopt solar energy, for example, are able to save significantly on their electricity bills, while industries that optimize production processes reduce the waste of raw materials.

Is ESG for All Industries?

One of the myths about ESG is that it only applies to large corporations or certain segments, such as industries with high environmental impact. However, any company, regardless of size or industry, can implement ESG practices and reap benefits.

• Retail and commerce: Reducing waste, optimizing sustainable packaging, and responsible supply chain practices.

• Technology and startups: Solid corporate governance, diversity in the workforce, and responsibility in the use of data.

• Agribusiness: Sustainable production, efficient use of water resources and regenerative practices in the soil.

• Financial services: Responsible investments, transparency and support for social impact initiatives.

• Small businesses: Energy efficiency, use of recyclable materials and social inclusion in the production chain.

In other words, any company can integrate ESG into its strategy and benefit from its positive impacts.

When ESG Can Be a Challenge

For some companies, ESG adoption may seem complex and unfeasible in the short term. Among the challenges are:

• Lack of knowledge and training – Many companies still don't know where to start or don't have qualified professionals to structure an ESG plan.

• High upfront cost – Implementing changes may require investments in technology, audits, and certifications.

• Difficulty measuring impacts – The lack of clear metrics can make assessing ESG success challenging.

What now? Is ESG Worth It for Your Company?

If your company is looking for sustainable growth, competitiveness, and a better relationship with investors and customers, ESG may be the right path. However, it is essential to understand the challenges and prepare for a structured implementation.

In the next few articles, we will explore how to put ESG into practice strategically and efficiently. Stay tuned and discover the first steps to transform your business!

And for you, is ESG an opportunity or a challenge? Share your opinion in the comments!

References

GRI (Global Reporting Initiative). "GRI Standards for Sustainability Reporting."

SASB (Sustainability Accounting Standards Board). "Corporate Sustainability and Accounting Standards."

World Economic Forum. "The future of Corporate Sustainability."

BlackRock. "The importance of ESG for institutional investors."

McKinsey & Company. "How ESG impacts the financial performance of companies."

CVM - Securities and Exchange Commission. "CVM Resolution 193/2023."

Sebrae. "ESG for Small Businesses."