The ESG agenda (acronym for Environmental, Social, and Governance Principles) has been seen by companies as increasingly important in recent years and become an undisputed priority for the production sector in the wake of accelerated climate change and the Covid-19 pandemic.

Released by the Brazilian Association for Business Communication (Aberje) in October 2021, a survey involving 79 large organizations operating in the State of São Paulo showed that 95% of them place the ESG agenda at the top of their priorities. For 38% of the companies surveyed, ESG is among the top three priorities. It is the highest priority for 22% of them.

“Companies were already developing this kind of initiative and the financial market endorsed the ESG agenda,” points out Vania Lúcia Lima de Andrade, consultant and director of ABM, the Brazilian Metallurgy, Materials and Mining Association.

“The financial market has realized that companies that adopt the ESG agenda represent a lower risk. Thus, they can get financing facilities under more favorable conditions and present higher market valuation,” she adds. 

Lima de Andrade will coordinate the Leaders Forum, which will focus on challenges, risks, and opportunities brought by the ESG agenda. The event will be part of the 6th edition of ABM WEEK, which will take place from June 7 to 9 at Pro Magno Centro de Eventos, in São Paulo.

Managers from some of the main industry players will show how their organizations have implemented the ESG agenda, in addition to participating in debates with the audience. 

Moderated by José Roberto Cardoso, professor at the University of São Paulo’s Polytechnic School, the Forum will include lectures by Cenira de Moura Nunes, general environmental manager with Gerdau; Francisco Pires, CEO at Novelis South America; Jefferson de Paula, CEO at ArcelorMittal Brasil, Aços Longos LatAm, and Mineração Brasil; Ricardo Fonseca de Mendonça Lima, CBMM’s vice president; and Titus Friedrich Schaar, COO at Ternium Brazil.

“We invited companies that are known for their good ESG management approach and, therefore, can be taken as a benchmark and disseminate lessons they have learned over the years,” Lima de Andrade explains.

According to Valdomiro Roman da Silva, ABM’s director for competence development, one of the discussion drivers will be a survey carried out by ABM among member companies on how extensively the ESG agenda has been implemented.

“It will be a great opportunity to assess the extent to which this issue is already incorporated in companies’ management systems by means of metrics and indicators,” Roman da Silva says.

Most large Brazilian and multinational companies in the sector with a robust management structure have already implemented the ESG agenda. “However, the industry’s production chain contains numerous smaller suppliers of products and services with varying degrees of advance in this field. The Leaders Forum will be a great occasion for them to exchange experiences,” he points out.

Covering the 2018-2020 period, Instituto Aço Brasil’s most recent report shows that its members have invested more than BRL 2.6 billion in environmental actions, including initiatives aimed at reducing CO2 emissions in the steel industry.

Most of them were granted certifications related to quality and sustainable development, the Institute reports. Programs for self-generation of energy, water recirculation, and reuse of co-products and waste have advanced enormously.

According to the report, issues such as employee diversity – increasing the percentage of Afro-descendants and women, for instance – and the generation of positive impacts for the communities in which companies operate have also drawn organizations’ attention.

But there is still a long way to go, Lima de Andrade emphasizes. She adds that a report published this year by the Responsible Mining Foundation (RMF) showed that ESG principles have become standard among the 40 mining players surveyed, but management advances have often not been introduced in mine sites. “This has been a major challenge all over the world,” she points out.

In addition, it is necessary to ensure that the entire supply chain is implementing ESG principles in order to change the ecosystem. 

This second phase has already begun. It will be necessary to map all the companies and develop ways to support them in this process,” Lima de Andrade says.

In her view, the Covid-19 pandemic was a key, critical time to reinforce the awareness that changes need to be made more urgently. “Associated with the climate crisis, the pandemic has shown us that our actions have repercussions around the world,” she ponders.

The 6th edition of ABM WEEK is hosted by Gerdau and is sponsored by the following companiesAçokorte, Alkegen, Amepa GmbH, Aperam, Atomat Services, AutoForm, BM Group/Polytec, BRC, CBMM, Clariant, Danieli, Dassault Systèmes, DME Engenharia, Eirich, Enacom, Engineering, Evonik, Fosbel, GSI, Harsco, Hatch/CISDI, Ibar, Imerys, IMS Messsysteme GmbH, Isra Vision Parsytec, John Cockerill Industry, Kuttner, Metso Outotec, Nalco Water/Ecolab, Nouryon, Primetals Technologies, PSI Metals, Reframax , RHI Magnesita, Saint-Gobain, SMS Group Paul Wurth/ Vetta, Spraying Systems, Suez, SunCoke, Tecnosulfur, Ternium, Timken, TopSolid, TRB, Unimetal, Usiminas, Vale, Vamtec, Vesuvius, Villares Metals, Wallonia.be (ADI – Industrial Services, John Cockerill Hydrogen, BorderSystem, Datanet International, Synthetis e PEPITe), White Martins, e Yellow Solution. Apoio especial: CNPq. Apoio institucional: Abal, Abendi, AIST, AIST Mena, Alacero, CBCA, Ibram, Instituto Aço Brasil, CIMM, Ind4.0