Firstly, Clarissa Lins pointed out that, in Brazil, the ESG agenda is being increasingly incorporated by companies, whether due to international pressure from investors and/or to more demanding markets. Within the environment pillar, Clarissa highlighted the climate-related challenges as one of the corporate priorities, as well as the importance of the Amazon in discussions regarding land use emissions from deforestation. In the social factor, she highlighted income, racial and gender inequalities as important issues for executives. Finally, governance was pointed as the most mature factor on the Brazilian ESG agenda, being the main lever for business reputation in the country.

Then, the panelists addressed the topic on how the energy transition should be configured in their regions. Clarissa pointed out that, just as in India and Africa, the values ​​of climate justice and care for the poorest populations should be a priority in the definitions of policies and projects in Brazil, leaving no one behind. At the same time, unlike the rest of the world and other emerging countries, Brazil begins the race for the energy transition already in a privileged position, with degrees of renewability of its energy and electrical matrixes at levels that developed countries want to achieve in 20 years from now (47% and 84%, respectively). As a result, the biggest challenge for Brazil is to maintain these levels of renewable sources in the future, while taking advantage of the diversity and abundance of different energy sources, including the national O&G sector, considered one of the most competitive in the world in financial and environmental terms.

Also, Clarissa talked about how ESG requirements and pressures from international investors are good drivers of the ESG agenda in Brazil and how international funds have been searching to align to the global ESG best practices, including transparency and reporting. At the same time, despite the positive signal, Brazil still suffers discounts from global evaluators due to its high level of risk at the government level, opening up opportunities for companies to elevate themselves in discussions from a corporate perspective.

Finally, Clarissa emphasized that the energy transition journeys and the ESG agenda must take into account regional particularities and opportunities arising from emerging economies.

You can watch the full event here.

Photo: Gustavo Quepón via unsplash.com