Environmental, Social and Governance (ESG). In Portuguese, the acronym stands for environment, social and governance.
Created in 2004 in a publication by the UN Global Compact in partnership with the World Bank, the acronym ESG has come to signify the relationship between the generation of economic value and concern for the environmental, social and governance issues, and measure the impact that sustainability actions have on their results.
In practice, following the ESG pillars is a demonstration of the responsibility and commitment of organizations to their market, their employees, consumers, suppliers and investors.
But what motivates companies to adopt sustainable practices?
Until 2018, ESG was still a little-discussed topic in Brazil. In recent years, with the significant increase in the number of employees, consumers and, above all.., investors aware of the importance of ESG practices, the demand for companies to start adhering to practices that preserve social and environmental relations has also grown.
Nowadays, there is a much greater demand to invest in institutions that are committed to social issues and, as a result, investors are demanding that organizations change their stance on practices related to society, employees and the environment.
A PwC report shows that 77% of institutional investors plan to stop buying products from companies that do not apply ESG practicesby the end of 2022. For investors, companies that follow the practices ESG are less prone to instability and more flexible to changes in consumption and production patterns.
In addition to being a very relevant factor for investor relations, organizations that adopt practices committed to caring for socio-environmental and corporate governance issues reflect a good reputation and gain visibility, which also motivates them to follow the path of sustainability.
At Scooto, since 2017, before the agenda ESG In order to gain prominence in Brazil, its social pillars were already being worked on. In addition to being a 100% remote company, which contributes to a lower environmental impact, social issues such as racial and gender equality are the focus.
In the corporate world, adopting sustainable social practices related to racial and gender equality means seeking to reduce the gender gap in the job market and promoting employability with the same opportunities and pay for people of different colors or races. At Scooto, these practices are part of the organizational culture.
In addition to being made up exclusively of women, around 44% of Scooteiras declare themselves to be black or brown and, among them, there are women in leadership positions, which contributes to reducing gender and racial inequality in the labor market.
In 2022, Scooto also signed an anti-racist stance and started a movement that fights racism by transforming communication, with the Antiracist Manifesto. Starting from an inclusive culture for women, part of Scooto’s mission today is also to reduce racial inequality in the job market.