In recent years, ESG (Environmental, Social and Governance) has stood out as a crucial factor in the creation of value, both for consumers and investors.
A recent study conducted by EY revealed that ESG affects 99% of investment decisions in Brazil.
In a scenario where ESG dimensions have become more than a need in the global corporate world, committees play a leadership role in determining the strategic decisions of businesses.
As the ESG movement continues to gain momentum around the world, we must be aware of the trends and observations that will deserve our attention in the coming years:
1. Use of cloud technology for procurement
The use of cloud technology (cloud computing) to manage procurement processes has proven to be an effective strategy.
It promotes transparent business relationships, improves regulatory compliance and decreases energy consumption, by eliminating the need for costly IT infrastructures.
The transition to the cloud is aligned with sustainability principles, making it a smart choice for those businesses committed to ESG.
In addition to the already mentioned benefits, the use of cloud technology offers also significant benefits in terms of agility and efficiency.
By moving to the cloud, businesses can scale resources in a quick and flexible way, thus adapting to fluctuations in procurement demand.
This results in more agile and effective processes, allowing organizations to react more efficiently to changes in the market and customer needs.
2. Ongoing assessment of ESG risks
The global scenario is plenty of uncertainties, from inflation and cost of living to political instability and climate changes.
ESG committees play a key role also in a constant monitoring of the impact of company’s operations on environmental, social and governance issues.
This involves collecting data and analyzing key performance indicators (KPIs) related to issues such as carbon emission decrease, workplace diversity and inclusion, and corporate governance practices.
ESG impact monitoring allows each company to evaluate its progress towards sustainable goals and to identify areas that must be improved.
All of such factors can affect business and investments significantly. Therefore, a continuous evaluation of risks associated with these elements is vital.
ESG committees must be prepared to deal with turbulence and develop risk mitigation strategies.
3. Employee well-being and organizational culture
The importance of employee well-being has gained prominence in recent years.
Addressing communication issues, listening to employees’ needs and promoting their physical and mental health, along with social well-being, are measures that can strengthen workforce cohesion.
Businesses that prioritize employee well-being often experience greater team satisfaction and increased productivity.
Focusing on employee well-being not only strengthens team cohesion, but also contributes to the development of a positive organizational culture.
Businesses that care about the well-being of their employees usually promote values such as empathy, respect, inclusion and mutual support.
The result is a healthier work environment, where employees feel valued and encouraged to contribute with their ideas and efforts, in a constructive way.