The implementation of practices or policies related to environmental, social, and corporate governance responsibility is an extremely relevant topic on the agenda of all business leaders within the global scope.
Companies that hold the “seal” of good ESG practices tend to benefit from a good brand reputation. The most recent edition of “The Global Risk Report,” devised by the World Economic Forum (WEF), indicates that issues related to the environment are the key issues of concern in society.
On the other hand, companies that adopt superficial practices and programs based on reputation, which is named Greenwashing, will not be able to sustain their strategies in the medium and long term and will have results opposite to what is expected. In short, “bad reputation” and negative impact vis-à-vis consumers and markets.
Furthermore, organizations without clear and structured policies and practices will, in the short term, have increasing difficulties in obtaining investments and resources, and their access to markets will be increasingly restricted since governments and regulatory bodies across the planet are working on related laws and guidelines. In other words, business sustainability is directly related to the ability to adapt to ESG “standards.”
It is a consensus in all spheres of society that we have reached the “point of no return” and that what is at stake is the very sustainability of the planet and the way of life of the human species. Organizations should deal with the topic in a much more comprehensive way than a process for adopting good practices. In the current scenario, ESG is directly related to the future of companies and their role as the main characters in this new dynamic being designed among governments, the private sector, and society.
Companies need to define their purpose based on a new vision of the future, and this implies reviewing whether their current business model will work in this context and whether their practices are sustainable, their management is transparent, their labor practices are ethical and inclusive, and their actions generate a positive impact.
Challenges are huge, and each economic sector has its own hindrances and opportunities to overcome and use.
In this scenario, we can give an example of how we at NTT DATA carry out our own journey within the best ESG practices, all in line with our purpose as a company.
As a technology and service company, the impact of our environmental initiatives is small compared to organizations in sectors such as industry, energy, mining, etc. However, we contribute towards reducing the carbon footprint by transforming our work models into hybrid ones and through initiatives, for example, related to data sanitization and governance, both ours and those of our customers.
But it is in the social scope of ESG that we have more opportunities to generate positive impact and truly relevant initiatives. It is part of NTT DATA’s DNA to focus on people. Our efforts have always focused on providing a collaborative, diverse, ethical work environment with transparent management.
In recent years, we have been expanding our training and inclusion programs outside the organization and contributing to the communities in which we operate. These are practices that we experience on a daily basis and that are actually part of our company’s core business and place us among the companies with the highest levels of collective well-being.
In addition, through our services, we support organizations worldwide with advanced technology and strategy to advance their ESG journeys.
The fact is that a new context of society is under construction, where the purpose of the existence of companies is changing. And, from that moment on, that purpose should be to be part of the solution to the world’s problems, especially concerning climate and social issues. It is up to each organization to understand this new dynamic under construction and decide whether or not to take part in this construction of the future.