We can say that sustainability today is the protagonist in strategies and business models of companies. Organizations have realized that they must work on an integrated thinking that contemplates a strategic business vision linked to sustainability and with which they not only create lasting value for their shareholders, but also develop successful and lasting relationships with all their stakeholders.
The last few years have been incredibly intense for the sustainability areas of organizations. Keeping up with the pace of change, and performing accordingly, has been a major challenge.
Today it is a reputational requirement for organizations to systematically and consistently address the environmental and social commitments associated with the business. Sustainability has become a strategic pillar for organizations and therefore requires more comprehensive and far-reaching management.
According to the World Bank, more than half of the world's GDP is generated in sectors that rely heavily on the services provided by the environment. However, the integrity and functionality of these natural assets are increasingly compromised, as 60% to 70% of the world's ecosystems are being degraded more than they can recover.
For the market to function effectively, it is essential that economic agents have clear, objective and non-discriminatory rules. In this scenario, complying with the standard is not a simple task and requires that the information disclosed by the different bodies be consistent and aligned with the same objectives.
With the gradual increase in the legal obligations of companies; ensuring compliance with the regulations that apply to the company, and consequently avoiding sanctions by the competent authorities, has become a preeminent and challenging activity.
Corporate Governance is understood as the set of rules, principles, policies, and procedures that regulate and define the structure and operation of a company's governing bodies. It establishes and regulates the relationships between shareholders, the board of directors, the management team, and stakeholders, regulating the decision-making process for long-term value generation.
Environmental monitoring is defined as the measurement and evaluation of physical, chemical, and biological indicators of an identified environment for a determined period of time, with the purpose of measuring the changes that can be generated in the environment.
When we talk about social aspects within ESG criteria, we refer to organizational policies and practices related to human rights, business ethics, supply chain management, inclusion, worker health and safety, and social impacts resulting from corporate operations.
ESG practices have taken a predominant role in the business world and have become a requirement for companies. More and more investors are looking to allocate their money in organizations that are aligned with good practices in the environmental, social and corporate governance fields. With this new trend, avoiding simulating compliance with ESG criteria is one of the major challenges facing the market. This practice, known as greenwashing, is the attempt by an organization to make its products or services, and itself, appear sustainable when in fact they are not.
