Knowledge Forum brings together guests to discuss ESG agenda in organizations

The Professional Master’s in Administration Program at Fundação Getulio Vargas’ Sao Paulo School of Business Administration (FGV EAESP) recently held the second edition of its Knowledge Forum. The aim of this initiative is to combine cutting-edge insights generated in academia with everyday market activities. To this end, guests from different spheres presented their challenges and solutions related to the theme of “The ESG Agenda in Organizations” to the program’s students in Sao Paulo on December 8 and 9. Under the supervision and organization of the program’s coordinator, Professor Paul Ferreira, it was possible to explore each element of the ESG agenda with real and current cases, as well as reviewing the literature in the area.

The social sphere was examined by guests Edise Toreta, head of Latin American HR at Merck Group, and Renata Rivetti, corporate happiness specialist at Reconnect. Toreta presented Merck’s Engagement Dialogues as a way of developing a sense of purpose and belonging among employees. According to her, companies need to have individual initiatives to promote personal development and a better experience, in addition to general corporate campaigns. Therefore, truly getting to know each person who works with you is the first step toward more efficient social actions.

“We contribute to the training of many leaders. How can we transform a company’s culture and implement ESG in a way that really has an impact and puts people first? How much do you really listen to human beings and their needs?” Toreta said.

Renata Rivetti addressed proposals for a four-day working week in Brazil and provided some research data showing how productivity and motivation indicators are very low in the country.

According to the corporate happiness specialist, we need to start to develop new ways of working based on the new needs and realities of 21st century employees. After all, the five-day week and eight-hour day were invented by Henry Ford back in 1926. “Today’s professionals want to find purpose and happiness in their work, and we need to redesign time, work and relationships,” she said. “New tools and formats need to be implemented, increasingly customized to the different realities of employees. What I feel today is that we have very poor indicators in many areas, such as low engagement, low productivity, dismal mental health, and high levels of burnout and anxiety. The great truth is that the world of work needs to change. We need to be the protagonists in building a new way of working. We need to discuss ESG issues, such as diversity and inclusion, a more productive working week and better mental health.”

After these talks, there was a fruitful discussion involving Carolina Pecorari, executive manager for sustainability and ESG at Ultragás, and Juliana Agostino, a sustainability consultant and investor and former FGV student. They also presented their professional careers and business cases to show how the environmental agenda ought to be incorporated into corporate strategies and how connections between areas can be made to allow ESG to generate value and meaning for companies. Agostino said, “Talking about sustainability to people who don’t necessarily work with it is the most important thing, because you can disseminate this knowledge and be an influencer so that other people are more aware of the issue. I also recommend studying. This is an area that is developing a lot, in terms of technology and regulations, so you have to stop and dedicate some time to learning, otherwise your knowledge may be too superficial.”

In turn, Pecorari said, “We need to talk about this subject to people who aren’t used to it and demystify some concepts, showing that sustainability is much more present in everyday life than they realize. In this way, we will guarantee this transition, which involves making sustainability inherent to decision making.”

To discuss the governance aspect of ESG, FGV professor Fernando Domingos shared some cases of government contracts encompassing the United Nations Sustainable Development Goals in other countries. He talked about the feasibility of this kind of contract, other solutions and commitments to ESG investment. According to him, shining the spotlight on this topic without thinking about the entire external system that surrounds it is not the solution.

To wrap up the event, the students heard a talk by Cristiana Pereira, a member of the Brazilian Corporate Governance Institute (IBGC), in which she presented the sixth edition of the Code of Corporate Governance Best Practices. This set of practices and principles provides some emerging guidelines and, as Pereira explained, the latest edition is intended to be less prescriptive and more inclusive.

“IBGC has long looked at ESG issues, but we realized that we needed to place more emphasis on them. This initiative arose from a trend observed in other countries, but it is also what the institute believes in. Organizations are part of society and the environment, and today it is no longer enough to simply make a donation, preserve some habitat or offset some emissions. Organizations have to be part of the country’s environmental, climate and social solutions. Increasingly, organizations have to be more consistently and intensely engaged in this discussion,” she argued.

At the end of the two-day event, the students discussed the subject among themselves and reflected on what the ESG agenda looks like at their organizations and in their daily lives and how they can contribute more to this agenda.

Learn more about FGV EAESP’s Professional Master’s in Administration Program here.