- Much has been said about this acronym lately, but do you know what ESG is and why it is important in our lives?
- The acronym ESG comes from the abbreviation of “Environment, Social, Governance”.
In this content, we seek to explain with data and numbers the reasons for you, both brand and consumer, to seek prominence in this theme.
The ESG considerations are wide ranging, ranging from the impact of climate change and carbon emissions, to gender equality and human rights. These are aspects that most organizations, did not give much importance (and visibility), but that today, are strategic for the positioning of any brand in the market.
Your consumer cares and wants to know what you have done for the planet and for people, if you do not deliver what he seeks, you will be at a competitive disadvantage.
The last few years were marked by a global pandemic, racial and civil unrest and a depressed economy, generated unemployment and a polarized political scenario. Companies, then, were called upon to play a leading role on these topics by consumers, rather than just being “connected in survival mode”. Those who understood this market movement started out ahead and are positioning themselves, with their consumers, as “good companies” and, with that, attracting loyal consumers.
On the other hand, assuming a strategy of working with more emphasis on sustainability, social impact and governance, for example, the traceability of materials, brings indisputable benefits for organizations, regardless of what their consumers think. When companies choose, for example, to improve the design of their processes to accelerate their transition to a Circular Economy, they are looking to reduce their costs and risks of acquiring primary inputs that, in recent years, have been experiencing increases (costs).
By taking care of the people involved in the organization’s value chain, be they suppliers or employees themselves, companies are creating a more “healthy” and “sustainable” ecosystem, with less risk of supply and staff turnover.
Finally, when they take care of the traceability of materials, they are able to identify flaws and bottlenecks, which gives them the chance to improve processes and make them more resilient.
For organizations, managing these three dimensions (ESG) brings short, medium and long term benefits. This can be seen in the graph below, where the companies that chose ESG in their strategy, showed a higher growth than the others.
For your brand
There are countless positive factors that show why you as a brand should pay close attention to working on these actions and communicating them efficiently (ESG transparency).
We are all consumers and by having access to ESG information at the time of purchase, it makes the responsibility shared, that is, it gives us the possibility to choose, as far as possible, products that have a positive impact on society and, why no, for the local economy.
Likewise, at the time of post-consumption, when we are “tired” of the product, or we need to discard it, what is the best and most correct way to do it? ESG transparency is also about receiving this information from the brands we consume and, therefore, following the guidance.
Of course, everything goes through education and awareness on both sides, but it is important to note that new generations already have this “modus operandi” in their DNA. Our role as a eumostro in this ecosystem is to connect both organizations and consumers so that each one can play their part.
We are facilitators
We developed and delivered the first ESG transparency platform where brand managers can communicate their environmental (E) and social (S) actions, as well as record the traceability of materials (G) to thus attract and retain customers and employees, as well as developing your chain better.
For us consumers
It is up to us, as consumers, to search for brands with the causes that we most identify with, on our online platform and analyze their actions and origins, opting for products that have the most positive impact on society.
If the brand you want to see is not in the eumostro, indicate our platform and ask the brand to share your ESG actions.
Only with all of us together, in action, will we achieve the Sustainable Development Goals (SDGs) set by the UN for the year 2030.
Remember, it is not for future generations, it is still for us!