Civil Society Organizations that adopt the ESG agenda gain more partnerships with private institutions, in a win-win relationship
The ESG Agenda refers to business and investment practices that are concerned with social, environmental and governance sustainability.
The term has gained space in the world of investments by private companies, but it also impacts governments and Third Sector organizations. This is because the practices can be implemented by NGOs, in addition to opening the door to the conquest of new partnerships.
Learn more about the relationship between the Third Sector and ESG below.
The term ESG is an acronym for Environmental, Social and Governance. Despite having become popular in recent years, ESG emerged almost 20 years ago with the publication of the Who Cares Wins report in 2004.
he document brought together representatives of financial institutions from nine countries, including Brazil. In the text, experts showed how environmental, social and governance factors in capital markets are important for business, contributing to better results for societies and companies.
Although Brazil contributed to the Who Cares Wins report, the ESG still does not have defined parameters in the country. In other words, the assessment of environmental, social and governance aspects is subjective. Even in its infancy in this area, Brazil has already reached billions in ESG investments. To give you an idea, in 2021 alone, R$78.1 billion was allocated to the area, according to Istoé Dinheiro magazine.
This number is expected to continue to grow in the coming years..
The Third Sector has a lot to learn from ESG. By taking these factors into account in institutional and project management, organizations align themselves with global demands with regard to governance, social responsibility and climate change.
While for traditional companies it is a prerogative for business continuity, for CSOs it is a matter of consistency and ethics. After all, to contribute to the improvement of the world, it is necessary to implement good internal practices.
Some issues such as criteria for diversity, inclusion, gender equality in the organization, transparency policies and dialogue with stakeholders can act as guidelines for the implementation of the ESG Agenda.
In addition, when the organization is aligned with these criteria, the greater the chances of raising funds.
The relationship between ESG and the Third Sector also involves collaborative impact. In other words, the experience of civil society organizations serves as a guideline for companies to seek a real positive impact and not just a marketing strategy without any relation to effective practices and results.
In practice, the Third Sector can be a partner and consultant for the implementation of practices that articulate business purpose and social demands. It is a win-win relationship, in which new market possibilities are at stake for the private sector. For CSOs, it can be a source of fundraising and a way to find strategic allies in the transformation journey.
Since its creation, 63 years ago, Ramacrisna has already implemented actions related to the ESG concept, such as:
● accountability;
● transparency;
● self-sustainability projects;
● training for management competence;
● power generation through photovoltaic plant
● oil recycling;
● solar water heating;
● environmental education;
For the vice president of Ramacrisna Institute, Solange Bottaro, this is a differentiator for the organization. “Ramacrisna created a transforming physical space, aiming to present another perspective to deal with the new model of education through technology, which is no longer a mere tool to become an instrument that enhances learning”, points out.
Solange also adds the benefits to the community. “Children and teenagers in rural areas have at their disposal a fantastic gift, which stimulates and gratifies each learning achieved. For the young public, from 16 years old, professional qualification involves differentiated, thought-provoking equipment, presenting discoveries, generating initiative and creativity for the future professional life”, he concludes.
If you are interested in implementing ESG-based best practices in your company, count on us. Ramacrisna offers companies solutions in management, administration and execution of different types of exclusive and customized social projects to meet the needs of the company.
Contact us and learn more.
