Investors and consumers increasingly prioritize companies embracing good sustainability, governance, and social responsibility practices—the so-called ESG agenda.

If your company has yet to consider environmental, social, and governance (ESG) issues, it’s time to rethink your strategy. The ESG agenda is a growing trend in the business world. More and more, investors, consumers, and society at large take into account brands and companies with responsible practices committed to these principles.

Investing in companies goes beyond assessing profits, revenues, debts, and management capabilities or product and service quality. Adopting ESG practices can lead to a better brand reputation, attraction and retention of talent, and even better financial performance. Furthermore, companies with good ESG practices are less likely to face legal, labor, fraud, and environmental impact-related issues.

But where should a company start? Check out tips to implement the ESG agenda.

Why Invest in ESG?

According to Forbes, the ESG agenda is expected to attract $53 trillion in investments by 2025. In Brazil, a survey by the UN Global Compact reveals that 78.4% of companies invested in environmental, social, and governance actions in 2023. Those not investing in ESG miss out on investment and growth opportunities.

Another study by the National Confederation of Industries (CNI) highlighted the top 5 reasons factories are integrating ESG into their operations: strengthening relationships with stakeholders, sustainable use of natural resources, improved corporate risk management, increased competitiveness, and compliance with legislation.

5 Tips to Modernize Your Company with ESG Practices:

• Understand the Positive and Negative Impacts of Your Actions: It’s crucial for the organization to comprehend its impact on the world—whether negative, positive, or neutral. This helps identify areas for improvement and set clear goals for the company.
• Develop Inclusion and Diversity Policies: Diversity is a pillar of sustainability. Creating inclusion and diversity policies demonstrates the company’s commitment to equity and social justice.
• Take Positive Actions with the Local Community: The company can contribute to social projects across various domains, generating positive social impact with its business.
• Generate Positive Environmental Impact with Your Business: The company can minimize its environmental footprint by adopting more conscious and sustainable production policies.
• Promote Transparency: The company should be transparent about its ESG practices, disclosing information about its actions and results.

Two other factors need consideration. Firstly, the company should operate in compliance with legislation. Additionally, continuous improvement in ESG practices, setting clear goals, and monitoring results are essential.

ESG in the Third Sector

The ESG agenda is not just a trend in the business market. Civil Society Organizations can—and should—invest in these actions to promote integration between business goals and fair, sustainable development.

For this reason, the Ramacrisna Institute has increasingly invested in understanding the environmental, social, and governance impacts generated by the organization and managing these effects to transform society, making it more just and sustainable in all dimensions.

Companies looking to stand out in implementing ESG practices can find a strategic partner in the Ramacrisna Institute to enhance their social projects. By associating with the Institute, companies not only contribute to social impact initiatives but also strengthen their image as transformative agents committed to sustainable development.

In its impact report, the Institute highlights energy and environmental preservation as strengths. Regarding energy, actions include energy efficiency and self-generation of clean energy. Currently, Ramacrisna produces 90% of its monthly energy consumption, with the savings equivalent to supporting the needs of around 440 young individuals or funding more than 7,260 meals.

Concerning environmental preservation, the focus is on the four hectares of preserved cerrado forest at the organization’s headquarters. Additionally, the Institute manages waste, including organic waste composting, proper separation and disposal of oil, collection and disposal of electronic equipment, and separation of iron scrap from the wire mesh factory. Ramacrisna also manages water resources, treating 100% of its effluents through a biodigester system.

Priorities for the coming years include water reuse and rainwater harvesting, and greenhouse gas emissions management.

Social Focus

The Institute has been working for over 60 years to transform lives. In addition to the social actions developed, Ramacrisna prioritizes responsibility toward its employees, offering training and capacity-building on best practices for professional and responsible management.

Much of the success of Ramacrisna’s projects stems from investments in governance, part of the Institute’s efforts for 30 years. In 2008, Ramacrisna joined the POS – Partnerships with Social Organizations, now called PILARIS, in partnership with the Dom Cabral Foundation, aiming to enhance management strategies, develop a systemic view in governance, and train managers in initiatives, implementation of managerial tools, improvement of internal processes, and consolidation of self-sustainability.

The Institute’s corporate governance policies are regularly updated to align with market best practices. These efforts make Ramacrisna an ideal partner for companies, governments, and other institutions aiming to make the world a better place. Want to know more? Get in touch and find out how to collaborate.