Investing in sustainable initiatives remains a priority for 71% of medium-sized Brazilian companies, according to the latest edition of the International Business Report (IBR), a quarterly report released by Grant Thornton. The study, which surveyed 5,000 business leaders worldwide, reveals a slight decrease of 2 percentage points compared to the first quarter of the year, but sustainability still maintains its relevance in the national market. The Brazilian index surpasses the Latin American average, which is 56%, and the global average, which is 58%.
Daniele Barreto e Silva, an ESG specialist at Grant Thornton, attributes the growing interest of Brazilian companies to the movement of regulators around sustainability management and reporting practices, such as the IFRS S1 and S2 standards issued by the International Sustainability Standards Board (ISSB). CVM Resolution No. 193, which makes the publication of financial information reports related to sustainability mandatory from 2026 onwards, also strengthens transparency and encourages sustainable finance. "These new sustainability reporting rules guide the discussions and priorities of the ESG agenda within companies and contribute significantly to sustainable economic development," says the executive.
In this context, Daniele highlights that the main challenge for companies lies in integrating processes. “Currently, sustainability practices in most companies are vertical and don't adequately engage with all areas and processes. The reporting requirements of IFRS S1 and S2 standards demand integrated information management, involving different expertise, departments, and committees, and encourage a cross-cutting approach to the topic,” she adds. “Communicating actions and results effectively, clarifying the correlations between material sustainability information and financial statements, is fundamental to demonstrating a commitment to practices with less socio-environmental impact and building greater trust with stakeholders, as well as strengthening reputation and attracting more investment,” Daniele concludes.
The Importance of ESG Reporting for Reputation
ESG practices are increasingly seen as a strategic tool for companies that want to stand out in the market. Including sustainability-related financial information in the report positions the ESG agenda as a pillar for business growth, as well as for reputation.
Within the context of communication and reputation, when measuring companies' investment intentions in branding, IBR indicates that 77% of Brazilian entrepreneurs intend to invest in this area in the next 12 months – a number above the global average of 57% and the Latin American average of 62%. Cecília Russo Troiano, President of TroianoBranding, reinforces the power of communication and warns of the need for companies to overcome the challenges of measuring and communicating the impacts of their ESG initiatives clearly and transparently to different audiences. “Today, for companies to build a reputation, it is not enough to deliver quality products or services; that's the bare minimum. The consumer market wants to know about other contributions a company makes to society. And, in this sense, ESG practices are that something extra,” adds Cecília.
Another point to consider is that commitment to sustainability has positive impacts in several aspects, one of which is the attraction and retention of talent. According to the research "The importance of the ESG agenda for university students," conducted by Grant Thornton Brazil, 77% of respondents expressed interest in leaving a company that does not meet the legal and market criteria related to ESG. "The new generation has a very characteristic concern with values and convictions; therefore, competitiveness in the current market demands that companies adopt solid practices that adapt to the future. Increasingly better-informed consumers seek brands that demonstrate a genuine commitment to sustainability, valuing governance, ethics, and transparency initiatives. Furthermore, a company's reputation is intrinsically linked to its ESG performance, influencing even the attraction of talent," points out Daniele.
