AntiESG or Pro-ESG? That is not the question

One of the references I use in my lectures and classes to broaden the understanding of what, in fact, the ESG agenda represents is the comparison with Total Quality in the 90s. Those who lived it know it. We were bombarded with the concepts of this Japanese culture. Companies used to have areas of 80, 100 people dedicated to this topic.

So, let me ask: where are those areas today? They disappeared in that model because quality became an intrinsic part of products and services. Either you have it or you don't participate in the market. However, it took a period of learning for this logic to be incorporated into the business, given the realization of its value. I believe that we will follow the same line for the socio-environmental issues, but with a little more complexity.

This complexity is well explained in the phrase that Al Gore, former vice president of the United States, said in a live in 2021: “There are clear indicators we are in the early stages of a global “Sustainability Revolution” that has the magnitude of the Industrial Revolution and the speed of the Digital Revolution.” And then I ask again: Is it possible that something of this magnitude can happen smoothly, quickly and in a straight line? Never.

It is, in fact, a journey. It's a marathon, not a 100m sprint. For about three years now, we have been witnessing a very special moment on this path, with greater visibility and interest from the most varied stakeholders in sustainability. This is a moment we've been waiting for so long (#vivipraver!).

And then suddenly… an “anti-ESG” wave begins to pop up. I confess that my first feeling is of total exhaustion. How can that be? Now that we have advanced structurally, that senior leaders have become involved, that the “core” areas such as Finance have understood the risks and opportunities of socio-environmental factors? Well… Yes, right now. But, after several readings and analyses, I see that this wave, paradoxically, shows the strength of what is being built. We cannot diminish our attention and action to put things back in their proper places.

When you deeply understand why we should include the social, environmental and governance dimensions in the current economic pattern, it becomes obvious that this is not about being “anti” or “pro” ESG. We are talking about investing in a circular and low-carbon economy, promoting a fair and plural society, ensuring the best governance practices. Actually, it is the construction of a new world model, which involves new patterns of behavior, consumption, thoughts and, consequently, a new way of doing business. The acronym ESG is just a didactic representation of this inexorable context. Therefore, it is not something that should be fought or defended.

When something challenges, provokes or outrages me, in addition to informing myself, I try to listen to the people I respect. For this reason, I would like to conclude these considerations highlighting the opinions of four professionals who are references in ESG and who, with their background, competence and lucidity, can shed the necessary light on this discussion:

Fábio Colletti Barbosa , President of Natura &Co: “These movements that challenge the ESG serve to open our eyes and adjust possible distortions that actually exist and improve ourselves. The more these movements stand up against ESG, the more energy I seem to accumulate to continue the fight.”

Carlos A. Nobre , researcher at Instituto de Estudos Avançados da USP : "It is not surprising that a movement has emerged from economically powerful sectors of the global business world against the necessary accelerated implementation of the ESG concept throughout the business world. They are associated with anti-science political movements, and they don't care about building an egalitarian society. They intend to keep the income inequality and the vast poor and miserable classes growing, continuously being semi-slaves of these super rich people. It is time to show all the benefits of ESG in building a sustainable future for the planet, with greater social and economic justice and tackling the climate emergency, protecting biodiversity and indigenous and traditional communities across the planet.”

Glaucia Terreo , ESG Consultant at Walk4Good : “Working in this area for a few years, I learned that there is no way to be 100% sure about many things... Counterpoints are always welcome because they enrich discussions, but they should be based on facts, data and science. I believe that the antiESG has several origins, and I want to focus on two of them: those who want to maintain the 'status quo', as they profit in this scenario and do not realize the benefits of it in the management of the organization; and those who are excessively against the system, those who think everything is greenwashing and that do not see ESG as a transitional movement from the current capitalism to another more conscious one”.

Carlo Linkevieius Pereira , CEO of the Pacto Global - Rede Brasil : “Criticism is important for growth and maturation. However, we are seeing a protectionist and reactionary movement, with no chance of prospering. The growing impact of the climate crisis, the advent of new technologies and new generations make the transition to a regenerative, fair and upright society inevitable”.