Responsible Corporate Governance
Decarbonization aims to reduce carbon emissions into the atmosphere and was a priority among companies, investors, policymakers and civil society in 2023, with a trend toward continued progress in 2024.
Regulatory pressure and carbon emission levels were mainly responsible for the movement, which is essential to investment funds’ strategies in companies. Reducing the carbon footprint, aiming for transparency in negotiations and well-executed plans, helps companies build responsible and sustainable corporate governance, in addition to attracting conscious investors.
Corporate sustainability
In line with corporate responsibility, in 2023 the carbon credit market grew, and the system has proven to be an important alternative solution to climate change.
By regulating the carbon market in the country, the Brazilian government also took a major step for the market, which was expected to increase voluntary carbon credits by up to 40%, generating about US$1.9 billion in value in 2023.
ESG measurement and communication
As sustainability investments in companies grow, so does the need to develop reports that assess their performance and transparency.
According to a survey by Deloitte and the Brazilian Institute of Investor Relations (Ibri), in 2023, 87% of companies listed on B3, Brazil’s stock exchange operator, increased their concern about ESG criteria.
XP Investimentos reports that investors prefer a corporate engagement strategy to drive the ESG agenda and lead to positive changes in the company. This data therefore indicates how crucial ESG reports are to business evolution, since they will be fundamental for investors to assess companies’ commitment.
Social impact and diversity
Company initiatives to encourage inclusion and diversity in their workplaces were another trend in 2023. XP Investimentos points out that between 2021 and 2022, most companies that had no women in management positions came to have at least one female representative on the body.
And even though the growth in women’s representation is slow, totaling only 5.9% over the last five years, Brazil has room for significant growth on this agenda, with active measures to keep growing in 2024.
There are many possibilities for better developing ESG practices in industry, and the review of 2023’s key topics shows this. The future is sustainable, responsible and needs to be planned with strategic intelligence. Optimize your company’s future with our robust solutions and produce your project’s sustainability technical report with our team of specialists.