Experts point out which ESG themes will be essential in 2022

The year 2021 marked the entry of ESG (Environmental, Social and Governance Principles) into the corporate vocabulary. Between the enthusiasm of some and the distrust of others, the term has gained prominence in the business world — and is expected to remain on the rise throughout 2022.

at the request of leaf, experts placed their bets on which themes will be essential on the sustainable agenda for 2022.

From climate justice to mental health, to decarbonization and data intelligence, the analyzes point to a maturing of the ESG discussion this year. Check out the full list below.

​Carlo Pereira, Executive Director of the Global Compact Brazil Network

Discussion will be less about carbon, and more about people and environment

Climate is a topic that will continue to be on the rise, there is no doubt about that. But one issue that is bound to grow is climate justice.

If we look at the historical role of developing countries, they have not contributed as much to climate change as developed countries. It is from this understanding that the idea of ​​common responsibility (of all), but differentiated, is born.

Looking at the ranking of per capita emissions, for example, we see that even China is not such an important emitter of greenhouse gases. In 2020, she was ranked 39th [segundo levantamento da Statista] —with the country in first place in absolute emissions.

So is it the Chinese citizen who has to emit less or the European who needs to emit much less and lose his comfort?

Within this discussion, there is also the issue of climate effects. Some countries are already suffering a lot from a problem that they did not cause.

Climate justice is a complex issue. In 2022 we are going to talk less about mitigation and more about people and the environment.

Vanessa Pinsky, USP researcher and ESG specialist

Mental health will be one of the biggest challenges for companies

The social pillar of the ESG agenda will be the great challenge for companies in 2022, especially the people management part, with the themes of well-being and mental health.

This was one of the issues highlighted by Larry Fink, Black Rock’s executive director, in his most recent letter to the market, in which he draws attention to the risks in the relationship between employers and employees.

Mental health and the way companies deal with their employees are the new paradigm in the world of work.

This is an emerging topic and the fact that Larry Fink has made it one of the priorities shows how central it is becoming to the capital markets.

In fact, since January of this year, Burnout syndrome has been classified as a work-related phenomenon — no longer a health condition.

Therefore, companies that do not prioritize programs to promote and prevent the mental health of their employees may be more susceptible to labor and productivity problems, with financial impacts for the organization.

Fabio Alperowitch, founder of Fama Investimentos, a fund manager focused on ESG

Companies will wake up to climate litigation as a risk factor

In 2022, we will see more climate litigation cases taking place around the world and more companies fearful of being sued for their environmental impacts.

Something similar has already happened with Shell. Last year, a district court in The Hague, Netherlands, ruled in favor of ecologists and ordered the oil company to cut its carbon emissions by 45% by 2030.

However, the theme should not be so strong in Brazil. The Brazilian Justice still does not have the capacity to act in the face of this type of climate process — which does not mean to say that the country will not be impacted by eventual developments.

Hypothetically, a foreign rural producer whose production was affected by the lack of rain could file an international court to sue the Brazilian government for deforestation in the Amazon.

I believe we won’t see people suing companies yet. But it may be the case that governments, institutions and NGOs start doing this.

Nelmara Arbex, ESG Lead at KPMG Consulting

ESG data intelligence will be critical to business strategy

Environmental, social and governance aspects increasingly impact the success or failure of a business, which includes its ability to access capital, define reputational risks, attract talent and gain competitiveness.

As it is an essential subject, executives and directors will demand ESG data from their companies to make strategic decisions.

Such information must have quality and, for that, it will require intelligent architecture for data collection, qualified management and auditable systems.

The so-called ESG Data Intelligence will be one of the most critical topics for raising the agenda at the strategic level of the business. In 2022, the topic will definitely be at the top of the list of leaders.

Mariana Oiticica, head of ESG and impact investing at BTG Pactual

Decarbonization will open up new business opportunities

With the Paris Agreement and COP26, several companies assumed commitments related to the reduction of greenhouse gases. Therefore, in 2022, many business opportunities will be linked to this theme.

To meet the goals set, companies will need to make investments. It is estimated that, this year alone, more than US$ 2.5 trillion (R$ 13.5 trillion) will be invested in decarbonization – a value that, in 2021, was close to US$ 1 trillion (R$ 5.4 trillion). ). That is, everything indicates that the subject will gain even more traction.

Decarbonization involves the use of technologies, ranging from the mitigation of environmental impacts to greater energy efficiency.

Therefore, the theme will open market opportunities in 2022, both for technologies that are already mature — and that will be able to be commercialized on a large scale — and for startups that are betting on new tools and strategies.

Maurício Colombari, partner at the consulting and auditing firm PwC

ESG targets will come under increased scrutiny

To avoid greenwashing (green misleading advertising), organizations that have made socio-environmental commitments are expected to detail the work plan to achieve them, including responsible persons, intermediate goals and immediate actions.

While ESG issues are gaining importance on executives’ agendas, research by PwC indicates that the agenda is still seen as a long-term one — and often pushed to the back burner.

In addition, most of the time, the established goals are not related to the company’s strategy, nor linked to the executive compensation plan.

Against this backdrop, corporate promises will come under greater scrutiny, and companies will be pressured to disclose how they will deliver on their commitments.