Why do more and more companies need to care about ESG

Environmental, Social and Governance, the ESG concept concerns the position adopted by several companies today.

In summary, ESG was created more than 40 years ago as a response, by the corporate environment, to the challenges of contemporary society. The acronym denotes an increasingly recurrent (and indispensable) concern with environmental, social and corporate governance issues.

ESG has been an efficient way to highlight companies responsible and committed to their niches, consumers, teams of employees and investors.

More than ever, the various fronts that make up the existence of a business are interested in making sure that they are dealing not only with the economic factor but also with a sustainability bias, be it environmental or social.

In fact, in today’s world, many people expect brands to commit themselves to credibility and transparency to deliver value to society, having a clear and measurable purpose. It is estimated that:

• 71% of people believe that companies should do their business with a positive impact on the environment and society.
• 35% is how much a brand’s reputation depends on its social impact and public perception.
• 91.4% of Generation Z consider environmental sustainability a relevant topic. They know how to recognize a brand’s efforts and reward credibility and transparency.

An important point to be mentioned is that for a company to demonstrate a genuine commitment to ESG guidelines, it must review several processes and new ideas for the production chain.

Entrepreneurs’ reasoning should be: how can I make my company (increasingly) less harmful socio-environmentally?

Now, regarding the criteria used for a company to be within the ESG, these are:

Environmental factors

The environmental aspects used to define whether a company fits within the ESG are, for example, the relationship that the company establishes with climate change and carbon emissions. Another factor taken into account are the actions taken to reduce deforestation and impacts on air and water pollution. The more proactive a company is in favor of practices aimed at maintaining the ecological balance, the better!

Social factors

The social aspects concern how companies relate to society. Here, factors such as customer satisfaction, data protection and privacy are taken into account, as well as respect for the community in gender, diversity and human rights issues.

Governance factors

Governance is linked to transparency and ethics in administrative matters. Some examples to be cited may be the composition of boards and the structuring of audit committees.

Artery and ESG

The Artery is a company dedicated to creating art events with a socio-environmental purpose. In its time of existence, there have been dozens of editions of urban art exhibitions such as the Elephant Parade®, Jaguar Parade and the Art of Love.

These exhibitions are interesting from an ESG point of view, mainly because they bring, through art, a genuine partnership between different companies that seek to protect the environment and establish a close and inclusive dialogue with the population.

This happens through democratized access to art, since our exhibitions are free, open to the public and accessible to people with disabilities. All this is for a significant cause: to conserve endangered animal species.

Our work with several national and international non-governmental organizations has been one of our significant differentials.

In our time of existence, it has been highly beneficial for many companies to link their brand to our initiatives, which are relevant concerning discussions about a future with more ecological balance and biodiversity.

Artery projects are aligned with the companies’ ESG guidelines by generating resources for social or environmental conservation projects.

For all that, stay tuned: talking and acting about the planet’s future can be one of the most efficient strategies for your brand.