ESG is no longer a differentiator but a requirement for companies and professionals who wish to remain competitive and compliant with market laws and expectations. This article presents the pillars of ESG, its legal and regulatory obligations, and highlights the importance of professional qualification to implement these practices effectively.

What is ESG and why is it important today?

ESG stands for Environmental, Social, and Governance . It represents a set of practices that assess a company's commitment to sustainability in its operations and policies. More than a trend, ESG has become an essential criterion for investors, consumers, and regulatory bodies.

• Environmental: The environmental pillar assesses how the company addresses its environmental impact. This includes actions to combat global warming, reduce emissions, control pollution, manage waste, and promote the responsible use of natural resources.
  
• Social: The social aspect focuses on how the company relates to employees, customers, communities, and other stakeholders. It involves practices of inclusion, respect for human rights, workplace safety, diversity, and social responsibility.
  
• Governance: Governance deals with how a company is managed. It includes transparency, ethics, accountability, decision-making structure, internal controls, and compliance with laws and regulations. Good governance reduces risks and strengthens stakeholder trust.

ESG: From competitive advantage to regulatory and market obligation

ESG has rapidly evolved from a voluntary concept into a formal and strategic requirement . Today, companies that ignore its guidelines face not only social criticism, but also legal sanctions, exclusion from investment portfolios, and loss of market value.

The environmental, social, and governance agenda has become directly integrated into financing, contracting, and consumption decisions—no longer as a bonus, but as a prerequisite.

In terms of regulations, ESG is already a concrete obligation. In Brazil, Law No. 13.303/2016 (State-Owned Enterprises Law) imposes governance practices on public companies and mixed-capital companies, requiring transparency, internal controls, and ethical management.

CVM Resolution No. 193/2023 also advanced in this direction by requiring publicly traded companies to disclose ESG information in accordance with international standards established by the ISSB, promoting global alignment and integrity in corporate reporting.

Internationally, the OECD Guidelines for Multinational Enterprises guide responsible practices in areas such as the environment, human rights, and corporate integrity. Meanwhile, the European Union, through the CSRD (Corporate Sustainability Reporting Directive) , requires large companies to publish periodic reports with environmental, social, and impact data on their activities.

These requirements have concrete repercussions in day-to-day business operations. Environmental licensing, emissions control, waste disposal, anti-corruption programs, internal audits, and sustainability reports are now an integral part of the planning and operation of any company that intends to maintain credibility, raise capital, and position itself competitively.

Ignoring these guidelines implies legal, financial, and reputational risks . Companies that neglect ESG practices tend to face barriers in obtaining credit, forming partnerships, and accessing institutional investors. In this context, ESG acts as a shield against crises and a passport to more demanding and sustainable markets.

ESG as a criterion for remaining in the market.

More than just complying with regulations, organizations are being judged daily by the market. Investors prioritize companies that adopt good ESG practices , as they tend to be more resilient, ethical, and profitable in the long term. Sustainable funds already outperform traditional funds in volume and profitability in several markets—a reflection of the demand for businesses with less exposure to social, environmental, and regulatory risks.

This transformation is driven by a new consumer profile that values ​​companies aligned with their values. Currently, consumer behavior directly influences brand performance. Environmental responsibility, diversity, transparency, and social engagement have become real criteria in purchasing decisions.

In this way, ESG has ceased to be a differentiator and has become a minimum requirement for relevance and continuity . Companies that integrate it into their organizational culture gain a competitive advantage: they attract talent, build customer loyalty, and position themselves as protagonists in the transition to a low-carbon economy and greater social justice.

Benefits for companies 

Investing in specialized employee training adds value in many ways and results in benefits, including:

• Improved risk management and strategic decision-making;
  
• Increased operational efficiency and reduced costs;
  
• Strengthening the institutional image and attracting investors;
  
• Greater stakeholder engagement and a competitive advantage in the market.

Continuous training is therefore a strategic differentiator that contributes to the sustainability and long-term success of organizations.

The closing thought

Incorporating ESG principles into organizational culture is more than just meeting external expectations: it's about adopting a strategic stance in the face of contemporary challenges . Solid governance, environmental responsibility, and social commitment are indispensable elements for mitigating risks, strengthening institutional reputation, and ensuring access to markets and investments. In this scenario, investing in specialized training is fundamental. The MBA in ESG, Public Policy, and Climate Change , offered by IDP , prepares professionals to lead this transformation with critical thinking, technical expertise, and responsibility.

References

ALVES, Ricardo Ribeiro. The Power of ESG . 1st ed. Rio de Janeiro: Alta Books, 2024. E-book. (1 online resource). ISBN 9788550824697. Available at: https://integrada.minhabiblioteca.com.br/books/9788550824697.

BASTOS, Thiago Rezende. ESG, compliance and the new European regulation . Migalhas, São Paulo, March 28, 2025. Available at: https://www.migalhas.com.br/depeso/426869/esg-compliance-ea-nova-regulamentacao-europeia.

SEBRAE. Understand what ESG practices are , June 7, 2025. Available at: https://sebrae.com.br/sites/PortalSebrae/artigos/entenda-o-que-sao-as-praticas-de-esg,66c07e3ac39f52810VgnVCM100000d701210aRCRD.

OECD. OECD Guidelines for Multinational Enterprises on Responsible Business Conduct. Paris, October 11, 2023. Available at: https://www.oecd.org/pt/publications/diretrizes-da-ocde-para-empresas-multinacionais-sobre-conduta-empresarial-responsavel_663b7592-pt.html.