Sustainability is increasingly present in our daily lives, no wonder it was one of the most searched words on the Google search site in 2023. Over the years, the public became accustomed to the term and increasingly associated it with importance and its meaning, so much so that it has presented high levels of search in recent years, with emphasis on the years 2022, 2023 and 2024, which had high levels of interest in the term.
In recent years we have seen another word gain prominence related to the topic: the acronym ESG. Since 2019, the search for the entry has increased by more than 3500%, according to Google Trends, people are becoming familiar with the topics, they can see their context at work, at school, in society and in conversations with friends, although the word sustainability still be much more recognized by the general public.
Around 80% of consumers in Brazil expect brands to have actions that have a positive impact on the environment and social responsibility. But how does this all relate to the economy and sustainability?
Both sustainability and its derivative ESG deal with environmental, social and economic balance. When there is no harmony between the three pillars and links, the equation is not balanced and when there is no economic return, social responsibility actions are not financed and environmental management takes a backseat. The economic and financial gear needs to be in full operation so that social, environmental and governance agendas are implemented, otherwise they are left in the background.
Although investments and commitments in sustainability are competitive differentiators, prerequisites for brands and governments, valuing brands and products, when the economy is not going well, environmental and social investments fall in the same proportion or more, they are the first to be cut and the last to be resumed.
The data can be corroborated with economic growth numbers versus investment in ESG and sustainability projects. In 2023, the European Union economy grew by just 0.4%, while the US GDP increased by 2.5%, values well below those recorded in the historical series, on the other hand, investments in ESG funds fell by 7% in the United States, reflecting a global economic uncertainty in the face of scenarios of war and inflation in Europe.
The growing economy and financial security scenarios encourage large companies, governments and economic groups to invest in projects and companies with sustainable businesses, particularly investments in low-carbon economy, energy transition, renewable energy, regenerative agriculture, circular economy , waste recycling and corporate social responsibility.
The stable economic scenario can accelerate sustainability through conscious practices, investments in clean technologies, valuing responsible practices and a collective approach. Business planning, government plans and robust public policies have the potential to strengthen the world economy and finance sustainable actions.
References:
What is a green economy and how can it improve the human relationship with the environment? | National Geographic (nationalgeographicbrasil.com)
https://www.cnnbrasil.com.br/economia/financas/investimentos-em-esg-em-wall-street-tem-caido-entenda-por-que/
https://www .jornaldenegocios.pt/economia/detalhe/pib-da-zona-euro-e-da-ue-cresceram-04-em-2023
https://www.bloomberglinea.com.br/2023/09/08/na- europa-fundos-tentam-se-adaptar-a-regras-esg-para-evitar-loss-de-investidores/
https://trends.google.com.br/trends/?geo=BR&hl=pt-BR
https: //welcome.atlasgov.com/atlas-news/esg-busca-pelo-termo-cresce-mostra-google-trends/