At the height of climate, social, and governance challenges, the ESG (Environmental, Social, and Governance) concept has gone from a niche acronym to a global standard for companies that want to thrive in a constantly changing world. Between trend searches on Google Trends and Google News bulletins, it can be seen that terms such as “ESG”, “corporate sustainability” and “circular economy” registered peaks of interest in July and August 2025, reflecting the urgency of integrated solutions to environmental and social crises.

1. The Impactful Scandal: National ESG Congress and COP-30

On August 18, 2025, Valor Econômico reported the official launch of the National ESG Congress, scheduled for October 9 in São Paulo. The event will bring together leaders from companies such as Jaguar Land Rover, Microsoft, Samsung and Bradesco Seguros to discuss the future of sustainability, with a focus on COP-30, climate change, diversity and artificial intelligence. The theme “The New Era of ESG: Courage to Act, Conscience to Transform” highlights the need for political and business courage to implement carbon neutral goals and social inclusion at scale.

The impact of this news is twofold: it reinforces the role of the private sector as a protagonist in mitigating the climate crisis and highlights the integration between corporate agendas and international conferences. The congress also poses a challenge: how to ensure that high-level discussions generate concrete practices that are accessible to all layers of society?

2. Gaps in Public Perception: The Chasm Between Practices and Trust

Although seven out of ten Brazilian companies already incorporate ESG practices into their processes, the public’s perception oscillates between indifference and skepticism. A survey by the ECR platform, cited in an August 2025 report, revealed that 26% of online mentions of ESG express sadness, 12% fear, and only 10% solidarity – signs that communication still fails to engage and inspire consumer and investor confidence.

This communication gap, fueled by fears of greenwashing and controversial policy decisions (such as the recent approval of changes to environmental licensing), calls for more authentic approaches. Brands need to go beyond discourse and allow for real transparency, making room for active dialogue and continuous accountability.

3. ESG in Executive Compensation: Global Trend Reaching Brazil

Integrating sustainability goals into senior management bonuses is no longer the exception. A study by KPMG pointed out that 78% of the 375 large companies surveyed already link part of their variable compensation to ESG indicators, representing between 11% and 20% of total variable compensation. In Portugal, five PSI “heavyweights” (EDP, Jerónimo Martins, Galp, among others) have already adopted carbon emissions and diversity criteria to adjust executive salaries.

In Brazil, Euronext started to include ESG metrics in both short-term (STI) and long-term (LTI) incentives, reinforcing the conviction that sustainability and long-term financial success go hand in hand. The growing adoption of this practice reinforces the pressure for not only economic results, but also socio-environmental ones.

4. Contrasting Scenarios: Divergent Trajectories  Between the U.S. and Brazil

While regulators in the United States show signs of retreating – the SEC resists proposed climate disclosure rules and the world’s largest asset manager, BlackRock, has even abandoned the term ESG under political pressure – Brazil is advancing in standards. CVM Rules S1 and S2 require sustainability reporting with a financial bias, and Susep implements mandatory management and disclosure of sustainability risks for insurers.

This geopolitical distance illustrates that, even in the face of international headwinds, countries like Brazil can take advantage of the global movement to shape more mature regulation aligned with sustainable development.

5. Technology and Transparency: The Role of Digital Innovation

By 2025, the adoption of blockchain, artificial intelligence, and big data to track supply chains and measure emissions has intensified. Real-time monitoring platforms allow you to capture scope 1, 2, and 3 emissions data accurately, paving the way for more reliable and externally audited reporting. In advanced markets, carbon credit certifiers explore AI-based solutions to accelerate validations, while cleantech startups  launch customized ESG dashboards for SMEs.

Digital innovation is not only a compliance tool, but a competitive advantage: companies that demonstrate verified data attract more investors and retain demanding consumers.

6. Economia Circular e Nature-Based Solutions

The transition to a closed-loop (circular) economy has gathered speed. Major fashion and technology players adopt “take, make, return” models: renewable materials, intensive reuse of components and responsible disposal plans. At the same time, Nature-Based Solutions – reforestation, mangrove restoration, soil regeneration – have moved from a philanthropic project to a central line in climate strategies, driven by the global commitment to the Paris Agreement and the TNFD (Taskforce on Nature-related Financial Disclosures) initiative.

In Brazil, the choice of Belém as the host of COP-30 reinforces the urgency of valuing the Amazon and climate financing models that benefit traditional communities, generating green jobs and certified carbon credits.

7. Stakeholder Engagement: Dialogue as a Foundation

The true pillar of the ESG agenda is genuine engagement with everyone involved: employees, suppliers, customers, investors, and local communities. Diversity and inclusion programs, flexible working hours, and wellness policies – proven to increase productivity and attract talent. Reports that demonstrate pay equity and opportunities for underrepresented groups have become key indicators of corporate reputation.

In addition, institutional investors use ESG ratings and specific questionnaires to pressure companies to adopt bolder goals, creating feedback loops that raise the bar for corporate responsibility.

8. Paths to Start or Enhance Your ESG Strategy

• Perform materiality diagnosis: identify environmental, social and governance impacts based on global standards (GRI, SASB, ISSB).
• Establish clear and measurable targets: Define commitments to emissions reduction, leadership diversity, and supply chain transparency.
• Invest in technology: adopt monitoring platforms and tracking systems for emissions and working conditions.
• Engage senior leadership: Incorporate ESG metrics into executive compensation to ensure accountability and engagement.
• Communicate transparently: publish audited reports, share successes and challenges, and maintain open channels of dialogue.
• Fostering partnerships: collaborating with NGOs, governments, research institutions, and other companies to enhance solutions and share best practices.

9. Conclusion: Sustainability as a Strategic North

ESG is no longer an optional agenda to become a condition for survival and competitive advantage. Recent news—such as the National ESG Congress in São Paulo—and public sentiment data point to a critical moment: companies that delay or underestimate climate and social urgency will be left out of investments and lose consumer confidence.

On the other hand, organizations that take an integrated approach—combining climate ambition, social responsibility, and ethical governance—stand out in increasingly demanding markets. The combination of technological innovation, transparency and genuine engagement is the key to turning risks into opportunities and consolidating a positive legacy for generations to come.

Referral links

• National ESG Congress will debate the future of ESG and COP-30 (Valor Econômico): https://valor.globo.com/patrocinado/dino/noticia/2025/08/18/congresso-nacional-debatera-o-futuro-do-esg-e-cop30-1.ghtml
• Brazilian ESG: the art of conveying sustainability clearly (Segs): https://www.segs.com.br/seguros/427777-esg-brasileiro-a-arte-de-transmitir-sustentabilidade-com-claridade
• ESG already has weight in the top salaries of companies. Even in Portugal (ECO Sapo): https://eco.sapo.pt/2025/08/11/esg-ja-tem-peso-nos-salarios-de-topo-das-empresas-ate-em-portugal/
• For analysts, the moment divides the trajectories of the ESG concept in the United States and Brazil (MSN/Estadão): https://www.msn.com/pt-br/noticias/brasil/para-analistas-momento-divide-trajet%C3%B3rias-do-conceito-esg-nos-estados-unidos-e-no-brasil/ar-AA1KYcoQ
• ESG News – financing, guidelines and global insights (ESG News): https://esgnews.com/pt/