Study shows that initiatives adopted by companies in favor of the environment are considered by consumers when deciding to make a purchase
ESG practices (acronym in English for environment, social and governance) are no longer part of the corporate world and are beginning to be perceived by consumers, especially initiatives more linked to the environment. This is what the study carried out by the Lew'Lara/TBWA agency, in partnership with DCode, shows.
In its first edition, the ESG Consumer Index interviewed 2,000 people to better understand consumer assimilation of the ESG initiatives of 160 Brazilian brands. And what was discovered was that, for many people, practices in favor of the environment are more decisive in the purchasing choice process than those focused on the other pillars of the acronym.
For 42% of those interviewed, initiatives linked to the environment are very important when making decisions. The social pillar appears in second place, with 32% of mentions, while the governance pillar, understood as ethics and honesty in business, was answered by 25% of people (rounded numbers).
Although the public's analysis is more focused on actions and investments aimed at environmental practice, the interviewees from the southeast region, shows the Medium and Message, cited governance as the most important foundation of the ESG acronym.
What is ESG
ESG is the acronym in English for ANDnviromental (environmental), sofficial (social) and Goversight (governance). The first letter of the acronym refers to an institution's practices aimed at reducing human influence on the environment. The second letter concerns the entity's social responsibility and how its actions positively impact society. The third is related to company or entity policy and is generally associated with ethical issues.
The acronym emerged in 2004 from a publication by Global Compact call Who Cares Wins (Whoever cares wins, in free translation). “Acting in accordance with ESG standards increases the competitiveness of the business sector, whether domestically or abroad. ESG is nothing more than business stability itself”, explains the ESG website. Brazil Network Global Compact.
The interest in the subject and the “puncture bubble” is the result of the boom in content and mentions of the acronym in recent times. Last year, shows the Economic value, the search for the term ESG tripled on Google, with Brazil being the Latin American country that most researched the topic.
Beauty: the sector and brands that consumers most connect with the topic
The study created a ranking of sectors and brands most involved with the ESG issue, according to the perception of these interviewees. The publication makes the reservation that the objective of the study is not an evaluation or audit of practices, but rather a simplified analysis based on consumer perceptions.
The categories most connected to the theme are, in order: beauty, banks, non-alcoholic, cleaning, household appliances, fashion, big techs, corporate, personal care and retail.
For consumers, says Época Negócios, “ESG practices are linked to a purpose and consistent positioning of brands”. Among the companies most associated by buyers with ESG practices are three in the beauty segment: Natura, O Boticário and Avon.
