Technology as a means to efficient ESG performance

This is the first article in a series of contents about ESG. Stay with us and understand the importance of technology in this scenario

Good technology management is essential for sustainable development in companies, especially when combined with the right tools that enable the measurement, collection, processing, and analysis of data.

Crucial to the energy transition in society and in companies, technology enables gains in energy efficiency through process optimization and the use of energy-efficient equipment and technologies.

It is important to be aware of the risks associated with the ESG agenda, especially in technology and governance. You need to follow the laws, including LGPD, and invest in cybersecurity.

Technology becomes one of the pillars that bring even more ease to the measurement and application of the ESG, and understanding the challenges, what should be looked at, and what important information should be handled today can be fundamental, as they are indicators of the actions to be taken.

The business relationship with ESG goals

The relationship between the ESG agenda and the corporate goals of companies can be approached from different pillars:

Environment: Energy Transformation, Climate Change, Water Use, Biological Diversity and Natural Resources, Air Pollution, Solid, Liquid and Hazardous Waste.

Social: Occupational Health and Safety, Community Interaction, Human Capital Development, Labor Standards and Human Rights, Gender Equality, Race and Identity, Supply Chain Management

Governance: Privacy and Data Protection, Risk Management, Shareholder Rights and Structuring, Diversity in Leadership Positions, and Board of Directors.

ESG in Brazil, our improvement scenario

Brazil still has a long way to go in the implementation of a culture adept at ESG practices. Although some companies are more conscious in this process, it is known that this is influenced by pressure from society and stakeholder positioning.

The growing awareness of corporate responsibility in relation to the agenda is indeed an important social duty, but it is worth remembering that, in addition, there are several other gains that make the journey worthwhile, even with the challenges it brings.

In general, the benefits associated with the commitment can translate into process optimization, cost reduction, energy transition, talent attraction and retention, assertive and data-driven decisions, investment attraction, and so on.

Assessing the progress of ESG actions and comparing companies from different sectors is complex because of the particularities of each one and the fact that the weight of each action varies according to the sector.

The ESG journey is an ongoing task that requires everyone's collaboration to achieve success, including the company's management. It is important that the ESG guideline is present in the strategic plan so that everyone can work in a way that is aligned with the macro-objectives of the business.

Companies that stand out for their ESG performance

In Brazil, some companies that stand out in ESG performance are:

Natura: The group has solid performance on environmental, social, and governance issues.

According to the 2021 IP&L report that integrates gains and losses from the environmental and social effects of its activities, for every R$1 of revenue, the company generated a positive socio-environmental impact of R$1.50.

It is worth highlighting its commitment to reduce its carbon footprint, acting in this direction since 2007. With this, more than 1.28 MM tons of CO2 have already been avoided by 2021.

With a robust and strategic area in the ESG agenda, Marcelo Behar, the vice-president of Sustainability of the group, in an interview to Estad?o in August 2022, highlightedsome of its main commitments .

In the environmental pillar, the concern with the entire production chain, from the extraction of raw materials , waste management and decarbonisation ; in the social pillar, the commitment to the goals of gender equality, education and mobilization of sales consultants ; and the circular economy, which aims at recycling and reusing packaging.?

Ambev: The group has a strong commitment to environmental preservation, including actions to the emission reduction of carbon and the reuse of water.

According to Ambev, it is committed to 100% decarbonization of its own operations by 2030 and of the entire production chain, involving scopes 1, 2 and 3 by 2040.

There is also a commitment to make100% of the energy sources used clean and renewable by 2025.

According to the Ambev group, with the investment in technological management, it was possible to reduce water consumption by 55% in the last 18 years, reducing the average use of water to produce 1 liter of beer, which used to be 5.36 liters to 2.4 liters, a reference today for beverage industries around the world.

In relation to social commitment, we can highlight Ambev AMA, which reverts 100% of the profits from the sale of the company's water to social causes and has already benefited more than 630,000 people in Brazil.?

Braskem: The company is recognized for its innovative approach to producing green plastics from renewable sources.

Based on the Sustainable Development Goals and the Paris Agreement, the company published in September 2021 its social, environmental, and governance commitments.

Among the goals and aims, we can highlight the concern with the reduction and offsetting of the carbon footprint by 2050, the expansion of the green product portfolio, the elimination of plastic waste, and the promotion of diversity with equity and inclusion.

Braskem uses the international indicators GRI (Global Reporting Initiative) and SASB (Sustainability Accounting Standards Board) to measure the results of its actions.

ESG's relationship with digital transformation and industry 4.0

The combination of technologies can improve a company's efficiency, strengthen its position in preserving the environment, and promote social responsibility actions.

It is important that the technology team understands the goals of the company and how the information generated daily can be used to make better decisions and bring value to the organization.

Digitalization and the technologies of the fourth industrial revolution facilitate the implementation of ESG initiatives and expand their use in companies.

Get to know some of the examples:

Digitalization of processes:: Digitalization not only increases efficiency, but is also a key part of sustainability. This requires the implementation of a robust IT infrastructure, automatization and automation processes, besides software support.

Establishing digital reporting platforms: Companies can implement and offer digital platforms on their websites. It is a form of corporate governance that helps organizations to actively engage in the fight against corruption.?

Use of artificial intelligence for process improvement: AI makes it possible to process a series of data to make them possible to be analyzed in an industrial operation.

Robotization of processes: The use of autonomous robots in companies enables increased operational efficiency and safety in certain processes. However, it is fundamental that the definition regarding the use of this type of technology is made with responsibility and commitment to the work positions that will eventually be replaced by the machines.

In this sense, allocating associates to strategic positions in the operation, as well as investing in technical training regarding new technologies, can be an efficient way to avoid resignation.

Technology can and should be used as a tool to drive ESG initiatives in companies, making them economically viable and measurable

Integrated and customized solutions for your operation

Relying on specialized partners with experience that connect these initiatives and technology solutions is a key tip for those who want to have fewer bumps in the journey.

Customized, high-tech solutions contribute to a clearer, more objective journey.

This article is part of a series of contents about ESG that is designedto help you with the challenges that the theme brings to companies every day .

Keep following us and don't miss the next content, in which we will address the pillars and premises for an efficient agenda in companies.

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