In the last online event sponsored and broadcast by Amplifica Digital, Towards 2024: Leading with ESG Responsibility, on 13/12/2023, we had the honor of receiving Oscar Kenjiro N. Asakura, specialist in ESG and Data Intelligence. We also have the presence of Juliana Felismina Ferreira, HR Manager previously and, today, ESG Manager at the company epharma PBM phygital, both shared insights into their ESG practices.
The objective of the event governed by Eric Klein, CEO & Founder of Amplifica Digital, was to communicate, raise awareness, engage and connect companies and listeners in discussions about actions of Sustainability and Corporate Governance implemented. We brought guests engaged and building a better future with the participation of all “stakeholders”, that is, interested parties = ALL OF US who inhabit planet Earth!
TOPICS ADDRESSED:
- Introduction to ESG in 2024
- Environmental Sustainability Strategies
- Corporate social responsibility
- ESG Innovation
- ESG Impact Measurement and Reporting
- Challenges and Solutions for SMEs
- Case Study — epharma
- Stakeholder Engagement and ESG Communication
“What is ESG: concept and how to apply it to business? The acronym in English ESG stands for environmental, social and corporate governance sustainability (Environmental, Social and Governance) in companies. The purpose of such a commitment is more than just preventing the deterioration of natural resources.”
Oscar, Chairman of the Group's Board of Directors Datuen Adimena and also CEO of smart ESG, presented his point of view on the importance of ESG and how it contributes to a solution to transform lives on a global level.
“ESG can only work if I have goals and metrics.” —Oscar
ESG trends for 2024
The event covered topics such as ESG Trends for 2024, where Oscar explained the business scenario that is increasingly oriented towards sustainability. ESG trends for 2024 outline a dynamic and challenging trajectory for companies seeking to effectively integrate these practices into their operations. An increasing emphasis is expected on the deep incorporation of ESG into corporate strategies, transcending the vision of an isolated practice to become an essential element of decision-making and business development.
As organizations seek to not only meet ethical standards but also generate tangible positive impacts, an increase in transparency in the measurement and transparent reporting of results is expected. Additionally, there is an evolution in the definition of more comprehensive ESG indicators, addressing not only environmental aspects, but also social and governance issues, reflecting the interconnected nature of these pillars. These trends reflect a growing commitment by companies to adopt holistic approaches, aligned with ESG principles, as a fundamental component of their identity and long-term strategy.
In the first minutes of the conversation, Oscar helped us to better understand the nuances between “sustainability” and “ESG”:
“I think there are different opinions in this case, but I will talk about what I understand about this, which is that I have been working in this area for 10 years. Evidently, I started from the perspective of 'sustainability'. Today, I defend ESG: I practically don't use the word 'sustainability', I use the acronym ESG! Because, when we talk about 'sustainability', we are talking about something a little more strategic and not at a tactical level, much less operational.” —Oscar
Sustainability Strategies, Corporate Social Responsibility and ESG innovations
In the context of growing demands for responsible business practices, sustainability strategies, corporate social responsibility (CSR) and ESG innovations emerge as essential catalysts for the positive transformation of organizations. Sustainability strategies now transcend mere compliance, evolving into proactive initiatives that aim to not only mitigate adverse impacts but also create sustainable value.
Corporate Social Responsibility, in turn, reinforces companies' commitment to promoting social well-being, aligning commercial objectives with positive impacts on the community and the environment. Innovation in ESG, reflected in agile approaches and disruptive technologies, stands out as a dynamic response to emerging challenges. Integrating these strategies not only consolidates companies' position as agents of positive change, but also positions them as visionary leaders in a business world increasingly focused on sustainability.
Eric continued the conversation with Oscar, focusing on understanding the nuances between sustainability and ESG. Oscar, with 10 years of experience in this field, highlighted the evolution of the concept from sustainability to ESG, explaining how sustainability often focuses on qualitative results over time. In contrast, ESG seeks quantitative measurements, introducing a more strategic and less tactical approach.
“Strategy” X “Tactics” in the context of ESG
In the context of ESG (Environmental, Social and Governance), “strategy” and “tactics” refer to distinct approaches to planning and implementing sustainable practices.
“Strategy” in ESG involves formulating long-term plans that encompass the three dimensions of ESG. It is a comprehensive set of guidelines and goals that align company operations with environmental, social and governance considerations. An effective ESG strategy aims to integrate these principles into the core of business, seeking to create long-term sustainable value and mitigate risks associated with ESG issues.
On the other hand, “tactics” in ESG are specific actions and measures implemented to achieve strategic objectives. They are more focused, operational and oriented towards immediate results. For example, a company may adopt tactics such as reducing carbon emissions (environmental dimension), inclusion and diversity programs (social dimension), or improving corporate governance practices (governance dimension). These tactics contribute to the successful execution of the global ESG strategy.
In summary, ESG strategy represents the long-term vision and broad objectives related to sustainability, while tactics are the concrete and practical measures taken to achieve these strategic objectives. Both are crucial to the overarching success of an organization's ESG initiatives.
The importance of quantitative measurement, particularly challenging in social issues
The discussion also explored the importance of quantitative measurement, particularly challenging in social issues, and the need for specialized professionals, Sociologists, to deal with this complexity. Oscar emphasized that ESG, as a subset of a larger sustainability plan, is a term more focused on tangible and measurable results.
The conversation also covered current and future trends in ESG that shape the way companies operate and influence investment decisions. Oscar highlighted the deep integration of ESG into corporate strategy as a significant trend. He argued that it is no longer viable to separate corporate strategy from the ESG agenda, emphasizing the need for a unified project that simultaneously addresses environmental, social and governance dimensions.
Our guest, based on his vast experience and experience, provided valuable and practical insights for companies seeking to lead with responsibility and innovation in their ESG strategies towards 2024.
The focus for 2024: the goal is ZERO carbon emissions
Oscar highlighted three crucial points for ESG trends in 2024. Firstly, he highlighted the urgency of drastically reducing carbon emissions, emphasizing the climate impacts observed in 2023 due to the greenhouse effect. He warned of a critical tipping point and the need to prevent this limit from being exceeded to ensure the planet's sustainability.
Secondly, Oscar addressed the growing importance of zero-carbon targets. He pointed out that companies are increasingly concerned about the issue of carbon emissions and highlighted the need for a determined focus on reducing these emissions. Oscar suggested that if significant measures are not taken, the search for crazy alternatives, such as “inhabiting other planets”, could become a reality…
Thirdly, Oscar discussed the sustainable investment and financing scenario. He highlighted that banks and investors are demanding detailed ESG reporting as criteria for granting loans and investments. He highlighted the importance of transparency and improved reporting, highlighting that it is now crucial to not only report actions, but quantify how these actions effectively contribute to sustainability.
Oscar also emphasized the need for innovation and technology to ensure the accuracy and effectiveness of these reports, addressing the importance of using data and artificial intelligence to give materiality to ESG practices, especially on issues such as tree planting and its measurement. Additionally, he mentioned the growing relevance of diversity, equity and inclusion (DEI) in ESG discussions, indicating that these social considerations will be a significant focus in 2024, as will the need for adaptation and resilience to climate change.
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The growing relevance of diversity, equity and inclusion (DEI) in ESG discussions
The growing relevance of diversity, equity and inclusion (DEI) in ESG discussions highlights a fundamental aspect of the commitment to social and corporate responsibility. In a world where social consciousness is on the rise, companies are increasingly recognizing the importance of promoting diverse and inclusive workplaces as an integral part of their ESG strategies.
The inclusion of DEI in the scope of ESG discussions reflects a deeper understanding that sustainability is not just environmental, but also social. Companies committed to diversity seek not only to meet quantitative criteria, but to create organizational cultures that value equal opportunities, representation and acceptance.
Equity and inclusion are essential components of a comprehensive ESG approach, and organizations seeking to stand out in the corporate landscape are prioritizing the creation of inclusive environments that respect and value the diversity of races, genders, sexual orientations and cultural backgrounds. The responsible management of people and human resources, combined with the promotion of equal opportunities, reflects an authentic commitment to social and corporate responsibility.
By incorporating DEI principles into their ESG strategies, companies not only cultivate fairer and more equitable environments, but also strengthen their reputation and attract diverse talent. Additionally, the inclusion of DEI in ESG discussions demonstrates a more holistic understanding of a company's social impact, addressing not only environmental issues but also the importance of fair and inclusive work practices. In this sense, diversity and inclusion are not just isolated goals, but interconnected factors that contribute to building more ethical, resilient and sustainable organizations.
Balancing the need to transition to renewable energy with the economic challenges this shift can bring
Balancing the need to transition to renewable energy with the economic challenges this shift can bring, the urgency to rethink business strategies in response to regulatory and compliance pressures becomes evident. In Europe, the fierce discussion about regulatory control highlights the need for coexistence between the transition to renewable energy and economic stability. Faced with this scenario, companies face a complex challenge of self-sustainable investment, considering not only the immediate financial return, but also the responsibility inherent in the transition to a more sustainable model.
The strategic approach to meeting these challenges requires careful planning, long-term cost-benefit assessment, and exploration of government incentives. Obtaining grants and strategic partnerships becomes crucial, offering financial support and promoting collaborations to make the transition more affordable. Furthermore, companies can resort to alternative financing models, such as operational leasing, to enable investments in energy efficiency and sustainable innovations.
By developing an organizational culture aligned with ESG principles, companies can establish a solid foundation for the transition. With transparency in communicating with stakeholders, organizations can build trust and demonstrate their genuine commitment to sustainability. Facing the challenging equation between the need for transition and economic impacts, companies are redefining their strategies to not just survive, but thrive in a business environment increasingly focused on social and environmental responsibility, precisely because we are all feeling threatened by global warming.
Success Case: Juliana Felismina Ferreira from epharma PBM phygital presents the Awareness and Action for Sustainable Disposal of Medicines project
Juliana Felimena Ferreira, from epharma, also participated and shared valuable insights about the ESG initiatives practiced by the pharmaceutical company during the chat. The company, aligned with the strategic vision of leaders such as Oscar Kenjiro N. Asakura, is demonstrating a remarkable commitment to sustainability. Juliana emphasized the importance of addressing ESG issues to ensure business prosperity in the future.
One of the highlights presented by Juliana, ESG Manager, was the epharma Green program, launched this year. This compensation program offers employees and customers the opportunity to purchase carbon credits through the company's application. By recognizing that the journey to acquire medicines inevitably generates carbon emissions, epharma Green allows users to offset these emissions, contributing to the company's efforts to achieve carbon neutrality by 2025.
Smart Medication Disposal
Another focal point of epharma's sustainable practices is its commitment to smart medication disposal. By 2025, the company aims to ensure that 50% of authorized medicines are disposed of appropriately. Juliana highlighted the importance of this commitment, highlighting how inadequate disposal can negatively impact water and soil. Strategic partnerships with pharmacies and chains contribute to achieving this goal, showing a real commitment to environmental responsibility.
epharma not only implements these practices, but also seeks full transparency. The website “Viva ESG epharma” was structured in partnership with Amplifica Digital to detail goals, public commitments and ongoing projects. This transparent approach aims to involve stakeholders and customers in the company's journey towards sustainability.
epharma's success story highlights not only its actions, but also its dedication to transparency and awareness. By addressing the sustainable disposal of medicines and offsetting carbon emissions, epharma stands out as an industry leader, shaping an inspiring path for other companies to follow.
The Experience of Amplifica Digital and Eric Klein's Journey Navigating the Search for ESG Talents, Roles and Leaders
Upon completing our search for ESG talent on LinkedIn, we noted the challenges in properly targeting roles linked to sustainability, responsibility, diversity and innovation. Segmenting ESG roles proved to be complex given the variety of professions and skills needed to drive these values in organizations.
Eric Klein, CEO of Amplifica Digital, led the event “Towards 2024: ESG Transformation”, using his marketing experience. This initiative reflects our constant quest to integrate ESG principles into company practices. Amplifica Digital. This journey is not just a reflection on marketing efficiency, but a deep exploration of the values that drive the company and its founders.
FINAL CONSIDERATIONS
A Amplifica Digital, aligned with exemplary organizations such as epharma, stands out as a strategic partner for companies that share a commitment to the democratization of access to information and the incessant search for transparency in their actions. Eric Klein emphasizes that the Amplifica Digital is ready to serve companies that wish to join this journey, strengthening their ESG commitments and driving concrete actions towards a more sustainable and diversified future.
The agency offers not only high-quality digital marketing services, but also a partnership that goes beyond tangible results, embracing the shared mission of transforming the business landscape towards more ethical and responsible practices. Considering the commitment of Amplifica Digital With the cause, companies looking for a partnership truly committed to ESG find in the agency not just a service provider, but an ally in building a more conscious and sustainable corporate future. Always count on us!
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