What is ESG?
The acronym ESG comes from the English Environmental, Social and Governancewhich in Portuguese means Environmental, Social and Governance. The term emerged to guide companies to adopt practices that go beyond profit, also considering social and environmental impacts.
In a nutshell, ESG is a set of criteria that assess how a company positions itself in terms of sustainability, social commitment and responsible management.
The meaning of each ESG pillar
To better understand the meaning of ESGIt's worth getting to know each of the pillars:
- E (Environmental): actions linked to the preservation of the environment, such as the conscious use of resources, waste reduction and the fight against climate change;
- S (Social): involves practices that value people, such as diversity, inclusion, respect for human rights and contribution to society;
- G (Governance): is linked to the way the company is run, with a focus on transparency, ethics and responsibility.
How do companies apply ESG in practice?
More and more companies are adopting ESG agenda in your daily life. This can be done through:
- Sustainability reports to show your practices.
- Social programs that support local communities.
- Investments in clean technologies to reduce environmental impact.
- Transparency in management and decision-making processes.
These practices increase the trust of customers, employees and investors and, consequently, strengthen the brand's reputation.
ESG and investments: why does it matter?
For investors, the ESG is an important indicator. Companies committed to sustainability and governance tend to be more solid in the long term, reducing risks and increasing growth opportunities.
Today, many investment funds already consider ESG as an essential criterion before investing resources. This shows that it's not just about social and environmental responsibility, but also about business strategy.
ESG and Simpar's work
The Simpar Group has a solid commitment to sustainability and corporate responsibility, placing the ESG at the heart of its strategy. This direction cuts across all the Group's companies and is guided by priority pillars, ensuring that environmental, social and governance practices are applied consistently and monitored.
On the pillar Environmental (E)Some actions include:
- Emission reduction targets validated by SBTiMovida is a pioneer in the car rental sector in the Americas.
- Conquest of GHG Protocol Gold Seal for the 5th consecutive year and presence at the S&P Global Sustainability Yearbook 2024.
- Carbon Free Program of Movida, which has already planted more than 600,000 trees.
- Electric fleet and low carbon solutions from LET'S GOIn addition to replacing Euro 5 vehicles with Euro 6, reducing pollutants by up to 75%.
- Projects such as JSL Electric Axlewhich promotes the electrification of bitrem trucks, and the operation of the BRT Sorocaba with solar energy by CS Infra.
- Initiatives in renewable energy, water management (such as reuse and dry cleaning), recycling and preserving biodiversity.
In terms of Social (S)The group values people and communities through:
- Diversity and inclusion programs, such as Women in Leadership e Mulheres na Direção (Women Behind the Wheel)This is an important step towards increasing female participation in strategic positions.
- Empowerment of young people and vulnerable communities, with initiatives such as the Do you want it? You Can! and Ciclus School literacy.
- Strict health and safety policies, including the program Connected to Youwith psychological, legal and medical care for employees and their families.
- Social investments via Julio Simões Institutewhich earmarked R$ 2.5 million in 2024 for cultural, educational and emergency support projects, such as the one carried out during the floods in Rio Grande do Sul.
In Governance (G)Simpar strengthens its management with:
- Publication of Integrated Report for the 5th consecutive year and presence at the ISE B3.
- Solid governance structure, with a board of directors, advisory committees and clear ethics and compliance policies.
- Robust integrity program, including Independent reporting channelcertifications such as ISO 37001 (Anti-bribery) and policies in line with international best practice.
- Commitment to risk management, data transparency and leadership training in sustainability through the Executive Sustainability Academy.
These actions demonstrate that the Simpar Group not only adopts the ESG but transforms the concept into practice, generating sustainable value for society, customers, employees and investors.
Conclusion
O ESG is no longer just a trend and has become an essential practice for companies and investors seeking a more sustainable and responsible future. Understanding what it is, what it means and how to apply it in the business routine is an important step in keeping up with the new business reality.