Consumers are increasingly demanding with regard to the products and services they use. Among the factors that started to count as a brand evaluation criterion, sustainability is one of the most outstanding. In this context, commitment to the agenda ESG, English acronym for the environmental, social and governance pillars (Environmental, Social and Governance), becomes more and more relevant in the business world.
For the architecture market it is no different. Clients are keeping an eye on companies that act in accordance with this good behavior and, consequently, investors also value those who bet on ESG for healthy growth. Want to understand all this better? We explain below.
What is ESG?
The ESG agenda represents a set of good practices that can be implemented within a company with the aim of promoting its sustainable growth. This sustainability applies to three different scopes: social, environmental and managerial.
From the observation of these criteria, it is possible to analyze the relevance of a business from a new perspective, beyond numbers and financial metrics. That is, in this way, potential investors can measure whether such a brand is a viable option for sustainable investments, proving that purpose and profit are factors that go hand in hand.
What does ESG address?
The ESG strategy includes actions that must be taken in three main pillars of a company's activities. Understand each one of them better:
Environmental
Within this scope, business actions must be geared towards a good coexistence with the environment. See some examples:
- Use of renewable energy sources;
- Coherent positioning regarding climate change;
- Actions to reduce water or air pollution;
- Correct waste management.
Social
Here is how the company behaves to promote a healthy relationship with society in general and also among its employees. These aspects include:
- Acting in accordance with labor laws;
- Offering benefits to employees;
- Diversity in the composition of the working group;
- Good relationship with the community;
- Investments in social projects;
- Healthy relationship with customers and suppliers.
Governance
In this pillar, all corporate governance practices adopted by the company's governing body are evaluated. Examples are:
- Ethical conduct;
- Integrity and anti-corruption actions;
- Risk management;
- Financial transparency;
- Compliance with legal and fiscal obligations;
- Crisis management;
- Well-structured compliance.
Why is ESG important for architecture?
The adoption of practices that constitute the ESG agenda is inevitable for any company in the architecture market that seeks to continue growing its operations in the coming years. With the increase in population awareness regarding social, environmental and governance guidelines, it is clear that customers are taking into account the company's behavior in this regard before contracting its services.
Furthermore, there is a demand in the investment market for companies that demonstrate this responsible conduct. According to the latest ANBIMA Sustainability Survey, approximately 85% of investment managers in Brazil know what ESG is and use it as a parameter to make decisions. Today, funds categorized as ESG have R$ 7 billion in assets under management in the country, according to research carried out by Bank of America (BofA).
Do you want to know more about the relevance of ESG to architecture and how Plantar Ideias is connected to these principles? Browse the site, see our projects and get to know our responsible performance.
