By Marcus Nakagawa, Coordinator of the Business Sustainability for Leaders program – State University of New York (SUNY)
ESG (Environmental, Social, and Governance) continues to grow worldwide. The expansion of ESG in Brazilian companies shows how it has become a fundamental strategy for those seeking both competitiveness and positive impact.
In this context, Marcus Nakagawa stands out as one of Brazil’s leading experts in sustainability and corporate ESG, with over 30 years of market experience. He has worked as an executive at organizations such as Philips and Fundação Abrinq and has led consulting projects in social and environmental responsibility across a range of industries. He is also an award-winning author and the founder of several initiatives focused on social entrepreneurship and sustainable management in Brazil.
In this article, Nakagawa analyzes the evolution of ESG in Brazilian companies, based on recent data and practical examples — including the case of Magazine Luiza, one of the country’s largest retail chains. Drawing from his experience in Brazil’s corporate landscape, he highlights both the challenges and opportunities emerging in developing markets, offering a valuable perspective for the global conversation on corporate sustainability.
ESG in Brazilian Companies: Progress and Strategy
Nos últimos anos, o ESG tem se consolidado como uma estratégia essencial para muitas empresas. De acordo com a pesquisa “A maturidade ESG nas Empresas Brasileiras”, realizada pela Beon ESG, 51% das empresas brasileiras já têm uma estratégia de sustentabilidade. Esse número cresceu significativamente, refletindo uma adoção crescente das práticas ESG, com um aumento de 14 pontos percentuais desde 2021.
In recent years, ESG has established itself as a key strategy for many organizations. According to the report “ESG Maturity in Brazilian Companies,” conducted by Beon ESG, 51% of Brazilian companies already have a sustainability strategy in place. This number has expanded significantly, reflecting a growing adoption of ESG practices, with a 14 percentage points increase since 2021.
Moreover, 43% of companies now have clear environmental targets, showing progress in aligning sustainability with business objectives. This shift is driven by growing pressure from consumers and investors, as well as the urgent need to respond to global climate change.
Green Economy & ESG: Opportunities for Business
The green economy — which includes sectors such as renewable energy, sustainable materials, and green technology — is among the most promising areas for the future. It is estimated that the green economy could generate up to USD 11 trillion by 2040, with critical minerals and renewable energy technologies leading the way.
Companies adopting green and sustainable practices are positioning themselves strategically to take advantage of these expanding markets. The global shift to a low-carbon economy is also opening new investment opportunities, particularly in solar and wind energy, and electric mobility solutions.
Magazine Luiza and the Circular Economy: A Brazilian Innovation Case
A strong example of how Brazilian companies are aligning with ESG priorities is the retail giant Magazine Luiza (Magalu), one of the largest chains in Brazil, known for its physical stores and e-commerce presence. Recently, the company secured USD 130 million in financing from the IFC (International Finance Corporatio, the private sector arm of the World Bank), and committed to recycling electronic waste. This initiative highlights the growing importance of the circular economy within ESG strategies — where businesses not only seek to reduce environmental impact but also actively engage in resource reuse and waste reduction.
Challenges and Outlook for ESG
While ESG is gaining ground, successful implementation still comes with challenges. John Elkington, who coined the “Triple Bottom Line” concept and is one of the most influential figures in the corporate sustainability field, proposed in 1994 that companies should measure success not just by profit, but also by their environmental and social impact — establishing the three foundational pillars of ESG: People, Planet, and Profit.
More recently, Elkington commented that, despite the current resistance ESG faces in some sectors and geopolitical shifts, this period can be seen as one of redefinition — ultimately making ESG more resilient and better suited to the evolving demands of the global market.
Overcoming these challenges requires commitment, innovation, and stronger policies that integrate social, environmental, and governance practices effectively into business operations.
ESG as a Strategic Pillar for the Future
ESG is no longer optional — it has become a new standard of management. Embracing environmental responsibility, strengthening governance, and investing in sustainable solutions are now essential for attracting talent, securing investment, and meeting the expectations of an increasingly conscious market. Organizations that integrate ESG into their strategy will be best positioned to lead the transition toward a sustainable and competitive future.
Ready to lead ESG transformation in your company? Discover the Business Sustainability for Leaders program, offered by IBS Americas in partnership with the State University of New York (SUNY). This international course provides a hands-on learning experience in sustainable management and prepares you to innovate and lead with ESG strategies — attracting investors and creating a lasting positive impact on business and society.
