THE ESG (Environmental, social and governance) – in Portuguese, Environment, society and government – is a practice that has become increasingly common in companies. According to the Global Compact, an initiative from the 2000s, the ESG criteria are directly related to the 17 Sustainable Development Goals (SDGs), which bring together major challenges and vulnerabilities of society.
In Brazil, the survey carried out in relation to companies that are part of the ISE (B3 Corporate Sustainability Index) reaches 83% of integration of the SDGs in their strategies and objectives.
We interviewed the Vice President of Sustainability & Corporate Affairs go HEINEKEN Group, Mauro Manto understand more about this reality in the future:
DNEWS: What are the advantages for companies that put ESG into practice?
Mauro: The ESG principles look at the three main pillars (environmental, social and governance) that must be considered by a company in order for it to develop in a sustainable and prosperous way with society. Together, these principles contribute to accelerating the company’s performance and connecting with customers, consumers and employees. When practiced with transparency and aligned with the purpose and values of the company, ESG practices reduce potential operational and image risks and bring the organization closer to its stakeholders, in addition to contributing to the strengthening of its reputation in a genuine way. For us, at the HEINEKEN Group, the commitment to working on ESG issues together with the business objective is the best way to evolve as a society and contribute to providing more and more positive impacts.
AD: What are the ESG trends for the corporate world in 2022?
Right now, we are going through what the market callsdecade of action. Based on the sustainable development goals set by the UN, which have the vast majority of their targets set to be achieved by 2030, organizations are accelerating their ESG agendas and working towards achieving the targets set. The private sector plays a key role in the success of the plans. The trend for these coming years, on the environmental front, is that more and more industries are adopting models of carbon neutrality in their value chain – mainly with the use of renewable energies, technologies that optimize resources, reforestation actions and expansion of the circularity of packaging, for example – in addition to having an increasing focus on circularity and water savings. Last year, the HEINEKEN Group publicly committed to neutralizing our entire value chain globally by 2040 and facilitating access to green energy for bars and restaurants through the Heineken brand.
On the social front, companies are developing awareness of the responsibility they have in relation to issues such as inclusion and diversity, gender and racial equity, social inequality, responsible consumption and healthiness, among others. Some examples of what we have done here in this regard are the goal of reaching 50% of women in leadership by 2026 and at least 40% of black people in leadership by 2030; and corporate and brand initiatives around balanced alcohol consumption.
And all this should happen concomitantly with economic development, so we should see an advance in management models in organizations that will become more mature, going beyond public commitments and actually delivering initiatives to maintain the company’s financial health, together with community development and reduction of impacts on the environment.
AD: How to bring more environmental and social practices to companies? What are the first actions that companies should take to follow this new path that addresses sustainability, society and government?
The first step to be part of this movement is to give importance to the topic, especially among business managers. At the HEINEKEN Group, we have had sustainability as a business priority for many years, and this month we announced the creation of this Vice-Presidency for Sustainability & Corporate Affairs, which will give even more focus and agility to the entire ESG agenda among senior management. . The second step is to identify which aspects of the business directly impact the environment and the community where it is located.
All of this must be thought of and done based on the identity, values, specifics and purpose of each organization, so that the initiatives gain strength and have credibility with the company’s audiences. In addition to the environmental and social benefits, sustainable practices also impact the company’s reputation in the market and, consequently, the financial results and relationship with all stakeholders.
AD: How can companies help raise awareness of ESG and make it a common practice among consumers?
Being an example, investing in studies, research, technology, science, forming partnerships and communicating the public about the initiatives developed and information gathered are ways to encourage the market and consumers to adopt increasingly sustainable practices. It is also important to know how to listen to them and develop actions that place them as participants in the process, creating greater engagement and a sense of belonging, in addition to taking their needs into account.
One of the examples we have of this is the project for the return of recyclable packaging that we have with the SO+MA startup in Salvador (BA), which has a loyalty program with accumulation of points that can be used in professional training courses, basics and food. With this initiative, we are looking at the circularity of packaging, reducing incorrect disposal to landfills and the waste of raw materials, while at the same time contributing to the socio-economic development of the local community and the awareness and behavior change in relation to sustainability.
AD: Among the 3 letters of the acronym (environmental, social and governance), is there any projection on which one will gain more focus in 2022?
ESG considers the balance between these three pillars and therefore they must develop together, supporting each other and enabling significant advances towards environmental, social and economic sustainability.
Mauro Homem is Vice President of Sustainability & Corporate Affairs at the HEINEKEN Group, and has over 15 years of experience in Corporate Affairs, Sustainability, Operations and Project Management.
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