Do you know what ESG (“Environmental, Social and Governance”) means? The term, used to evaluate companies on their performance and impact in the areas of sustainability, social and governance, has become increasingly used in a society which seeks to value conscious businesses. Discussions on the topic are essential in corporate environments, including, for example, the importance of Diversity in ESG.
Drawing on a series of historical references, books, characters, key events and Public Relations concepts, Natália de Campos Tamura — Communication and Sustainability consultant, professor and researcher — recently took part in a conversation with our teams here at Sherlock Communications.
Organised by the Diversity and Inclusion team, the chat aimed to prompt reflections on the importance of understanding and respect for social diversity in Brazil, and acting efficiently and ethically in the areas of sustainability, society and governance.
According to the specialist, the acronym “ESG” (Environmental, Social and Governance) was first used in 2004 in a report published by the UN, in conjunction with the World Bank, called “Who Cares Wins”. The term arose from a provocation by the then UN Secretary-General Kofi Annan, who asked CEOs of large financial institutions how they intended to integrate social, environmental and governance factors into the capital market.
In practice, ESG has come to represent a kind of ideal behaviour or concept which leads companies to think beyond themselves, and adopt a more responsible way of handling their business, whether in social, environmental or administrative terms.
Going further, when we talk about corporate social responsibility, we also refer to the incorporation of day-to-day actions that value the diversity of gender, race, ethnicity, sexual orientation, physical condition, social class, religion, age, nationality, and many other criteria linked to minorities and historically disadvantaged groups.
To delve deeper into this dialogue, it’s essential to understand how diversity has affected Brazilians. Data presented by Natália shows that gender inequality is still a problem in Brazil, since women represent 51% of the population, but still earn 24% less than men on average. Meanwhile, as of last year, only nine of the top 100 companies in the United States were led by women.
Other social claims such as gender identity and racial diversity still do not receive the attention they deserve. More LGBTQIA+ people are killed per year in Brazil than any other country in the world. Among the women murdered in 2021, for example, 66% were black, which is very concerning.
These findings highlight that Brazil, for the most part, is still a country whose population is prejudiced towards certain social groups. The country has a long way to go to reach full social inclusion and make up for centuries of injustices which have been, and still are being, committed.
Therefore, it’s increasingly important for companies to take responsibility and fight for diversity from the inside out, promoting awareness among their staff and giving due prominence to minority employees — especially in management positions, representation in the media and internal communication channels, exclusive vacancies, etc.
