The Brazilian Business Council for Sustainable Development (CEBDS), a member of the Global Network of partner organizations of the World Business Council for Sustainable Development (WBCSD), recently initiated a series of discussions and workshops to increase companies' understanding of the challenges, opportunities and solutions of transparency and risk management.
The most recent of these commitments took place on the sidelines of the Bloomberg Sustainable Business Summit, held from April 24 to 26 in São Paulo.
CEBDS, Bloomberg and WBCSD convened a dialogue for Brazilian agribusinesses exploring climate-related impacts, as well as the challenges and opportunities associated with implementing the recommendations of the Working Group on Climate-related Financial Disclosures (TCFD).
The main themes that emerged throughout the discussions centered on finance and resilience, that is, how to communicate and finance innovative solutions, and how companies – particularly agribusinesses – can and should prepare, adapt, and respond to climate change.
In a hands-on risk management training the following day, WBCSD members—Bayer, Natura, Santander, BNP Paribas, Schneider Electric, and Votorantim Cimentos in particular—shared how managing environmental, social, and governance (ESG) risks and opportunities can be integrated into business strategy, performance management, and disclosures.
One of the key ways for companies to get started on this front is with the Guide for Applying Enterprise Risk Management (ERM) to ESG-Related Risks. The Guide was developed by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and the WBCSD to help organizations worldwide respond to the growing prevalence and severity of ESG-related risks, from extreme weather events to product safety recalls.
Applying the Guidance highlights the importance of considering ESG challenges at the enterprise level using the updated COSO framework. Furthermore, it provides an opportunity for companies to broaden their understanding of their risk profile and value creation model—while also allowing them to consider how these issues impact shareholders and society. This is one of the key frameworks companies can use to begin systematically integrating sustainability.
The Bloomberg Summit brought together executives, investors, and innovative thought leaders for critical conversations on local and global issues in sustainable business and finance, including: long-term growth, inequality, the Sustainable Development Goals, climate change, the circular economy, transparency, and public-private collaboration.
WBCSD members, including Syngenta, Santander, and Natura, were present and active, presenting their perspectives, insights, and key learnings on the importance of these topics for their business operations.
The Summit emphasized that leading companies are integrating ESG risks, opportunities, impacts, and dependencies into decision-making and communicating strategically to key stakeholders what they are doing.
As José Antonio Filippo, Natura's CFO, put it: "Is sustainability a cost? Absolutely not—it's integrated into our processes... investors and customers are very interested."
CEBDS and WBCSD will continue to engage companies in Brazil to measure and manage risks, gain competitive advantage, and seize new opportunities by understanding ESG information.
