ESG is the acronym for Environmental, Social, and Governance, which in Portuguese can be translated as "ambiental, social e governabilidade". This indicator serves to measure the social and environmental impacts of a company.

Today, it is possible for a company to have a sustainable approach while maintaining profitability. Contrary to popular belief, social responsibility, environmental stewardship, and the adoption of good administrative practices are not only achievable but also contribute to a company's reputation.

A survey conducted by EY in 2020 with approximately 300 investors worldwide showed that 91% of them take into account the non-financial performance of companies when making investment decisions.

Recent studies have shown that approximately 88% of investors agree that companies that prioritize ESG initiatives They represent better opportunities for long-term returns than companies that do not, and global consumers are almost five times more likely to trust, buy from, defend, and protect companies with a strong ESG purpose.

ESG and LGPD

Two terms that have become very widespread in recent times, the ESG and LGPD They have represented a challenge for companies, as both bring with them a need for adaptation.

While the General Law of Data Protection, which came into effect last year, speaks to the imminent need for the data of the holders they should be treated with due seriousness considering the risk they represent, ESG establishes the goals and pillars. non-financial aspects of a company, factors that also encompass the governance brought about by the LGPD (Brazilian General Data Protection Law).

While the LGPD (Brazilian General Data Protection Law) mandates compliance for companies, potentially resulting in multimillion-dollar penalties for non-compliance, ESG (Environmental, Social, and Governance) arrives in the business sphere without yet requiring such mandatory compliance. However, it's worth noting that failure to adapt to ESG can lead to a decline in a company's reputation.

We cannot fail to mention that the rights guaranteed by the LGPD (Brazilian General Data Protection Law) are directly related to what is considered responsible conduct within a company. Therefore, they are a necessary step towards the proper internalization of ESG (Environmental, Social, and Governance) values.

Both LGPD and ESG These can be considered relevant criteria for evaluating and choosing a brand, since both touch on sensitive current issues where consumption habits and service choices are subject to much more rigorous evaluation. A company, in addition to being penalized for non-compliance with any law, may lose perceived value in the eyes of investors and the public, who will not hesitate to make choices that increasingly consider the security of their data, the right to privacy, and initiatives in favor of sustainable performance.