How does esg work in international trade in goods?

In this article we will address a very important topic for foreign trade that is the esg in international trade. This is not a new theme in international practices, but in Brazil we still need to make a lot of progress so that we can achieve faster processes and thus achieve market expectations.

Being a relevant concept for foreign trade companies it is necessary to emphasize that the definition of ESG is the same for all countries that operate in the international scenario, which is increasingly demanding when talking about the theme.

So, want to know more about what is esg in international trade? Continue reading until the end!

What is ESG and how does it work?

The ESG (Environmental, Social and Governance), literally translated into Portuguese as the Environmental, Social and Governance Index, which has been constantly spoken on the agendas of society and companies, for the transformation of business businesses, as a strong influenceon the decision-making of investors around the world.

That is, the ESG is a set of good standardized practices, with the vision of defining whether foreign trade companies have social awareness, are sustainable and still managed correctly, as a measure of the sustainability performance of companies.

Therefore, the esg in international trade will concern the integration of economic value, added to the concern for the environment, society and better corporate governance.

Therefore, companies need to put these standards into practice to show greater responsibility and commitment in the international segment in which they operate, as well as with customers, suppliers, employees and investors.

The esg criteria in international trade are used to make managers understand if there is sustainability in the organization, so that they can expand their business analysis beyond financial, measuring the vision of being a viable company to receive investments to positively engage society and the environment.

Thus, it is validation as a conscious organization about its role as an employer and social agent to attest to the influence it exerts, generating business throughout the ecosystem of relationship between the parties.

What are its essential pillars?

Also known by the term Social, Corporate or Corporate Responsibility (CMR), esg in international trade is responsible for managing the impact that its actions generate on society.

Through practices, we seek to certify the development of all stakeholders, taking initiatives so that the benefits of actions have a positive influence on people’s lives.

That is, the goal is not only to profit from financial return, but also to improve all relationships through donations, social causes, preservation of the environment, among others.

The main pillars of the ESG are:

  • involving practices with the care of nature and the environment;
  • which refers to practicing actions to do good for society, improving the surrounding community;
  • governance, which is the set of practices to strengthen the interests of the company and stakeholders, according to the rules of supervisory bodies.

What are the advantages of ESG practices?

Currently, companies that seek to put into practice the actions of esg in international trade, collaborate for the preservation of nature, help in the construction of an inclusive society, in addition to its employees also participate in the causes with engagement and reaking the good fruits of the actions performed.

New investments

Importing or exporting companies that adopt ESG practices become increasingly interesting to investors, as they are not only aimed at the financial return on profit, but also the responsibility that companies have in aligning urgent measures to reduce inequalities and the misuse of natural resources.

Company image

The esg in the international market reinforces the image of companies before society and its customers, through the opening of new markets to reach new audiences. After all, the greater focus on compliance and more transparent processes, builds a more solid and flawless business image.

Customer preference

In view of the changes in the habits of consumers, increasingly demanding and aware of social and environmental issues, tend to charge the same position of foreign trade companies, to monitor trends aligned with the principles of the ESG.

What impactdoes esg has on foreign trade?

The esg in international trade has a direct influence on society and the environment, because the international supply chain itself is driven by fossil fuel, being the largest responsible for greenhouse gas emissions in our country.

Therefore, foreign trade companies are under pressure to take up sustainable practices, including investments in renewable energy and advanced technologies.

In addition, corporate governance is driven by the search for effective processes and internal controls, aligned with the sustainable practices required in various regulations and international trade legislation.

What is the importance of ESG being practiced in foreign trade?

The practice of esg in international trade is fundamental for the segments operating abroad, because the slowdown of the degradation of natural resources, for the preservation of the planet to future generations is a goal to be achieved by all, with the good practice of these tools available to companies.

Due to the high emission of carbon dioxide, the agenda goes beyond and goes through the insertion in more demanding markets, the reduction of barriers that are imposed, in addition to better positioning before the target audience and stakeholders.

In order to make an international supply chain more sustainable, both for people and for the planet, it is necessary to invest in the transparent business model and in accordance with current legislation, to achieve the results through clear communication between all.

How does ESG bring business sustainability through technology?

Finally, in the face of state-of-the-art technology, all efforts are grouped with the sole objective in the sustainable development of companies, responsible for the cause of the esg in international trade, investing in advanced technology for the search for sustainable energy, in improving the use of natural goods, as well as in improving the quality of life.

In addition, technology ensures compliance for processes to become more digital, clear and transparent, with the help of foreign trade software that automates tasks, reduces risks, measures the environmental impact and analyzes planning with greater agility.