Brazil’s ESG commitments: ask corporations, not the government

Under President Jair Bolsonaro, Brazil has become something of an environmental bogeyman, and countries have become understandably skeptical about the government’s true commitment to its climate goals. The current administration has made significant pledges during COP26, undermined by the fact that it covered up new, record-setting deforestation numbers during the UN climate summit — only releasing the data after it was over.

But looking at corporate Brazil, the scenario seems much less bleak than an uninformed observer would imagine.

On the whole, major Brazilian companies seem to be on board with a more sustainable approach to business. Customer engagement and social norms are also pushing the ESG (environment, social, and governance) agenda. Cases of racism and harassment have sparked strong reactions from society.

Important organizations, such as the capital markets association and self-regulation body (Anbima), the Brazilian Federation of Banks (Febraban), and the stock market have made respectable sustainability pledges. 

Industry forums and discussions with ratings agencies and auditors are trying to establish more parameters to assess purpose-oriented investments. The third sector is also improving in terms of numbers of...