The CFO's perception of the importance of ESG issues in organizations and the status of the development of this agenda was evaluated by PwC Brazil and the Brazilian Institute of Finance Executives of São Paulo (IBEF-SP). According to them, the last three years were marked by significant advances in ESG issues that had not been observed since the emergence of the acronym in 2004, with the publication of the Who Cares Wins report, prepared by the Global Compact in partnership with the World Bank (click to download).
When asked whether they issue an ESG report, 35% answered “no”; 33% said “yes”; 18% said “yes, at the head office abroad” and 15% still “intend to do so”.
About E (Environmental). 78% of respondents consider climate risks relevant or very relevant, and the study indicates which sectors this assessment comes from. The absence of data is indicated as the main difficulty. 71% of companies indicated that they still do not have mechanisms for internal carbon pricing.
About the S (Social). 99% of finance executives understand the importance of the social pillar and recognize that they have a role to play as protagonists in the organization's various activities. 63% believe that the role of organizations in combating social inequality would be very relevant. On the other hand, (only) 47% indicated that they have mechanisms to assess the impact of investments on communities and around their areas of operation.
Regarding G, the governance pillar that deals with topics such as compliance, ethics, anti-corruption actions, financial transparency and corporate responsibility, only 31% indicated that the role of governance in the ESG aspect is clearly defined in their respective companies (!). Absence of a formal program, difficulty in “making” the ESG tangible and lack of priority account for almost 70% of the barriers to ESG (!). Tax incentives were also indicated as a major boost to the ESG agenda (our post on the US environmental package showed how it came “stuffed” with incentives).
About the adopted frameworks: 19% GRI, 15% Integrated Report, 8% SASB, 6% TCFD and 5% GHG Protocol. The remaining 47% (!) indicated either not knowing or no specific or not issuing.
The survey was conducted between May and June 2022 based on responses provided by CFOs from 80 Brazilian organizations. Click here for an article by Valor Econômico.
댓글