*Per Clara Savelli
The concern with issues related to ESG (acronym in English for environment, sustainability and governance) is not new, but a few years (or decades) ago, the situation was not imminent as it is today. Tomorrow has finally arrived requiring accountability, which made humanity realize that we were very much in debt and that it is high time to put into practice the ESG initiatives that we always promised that we would one day get off the ground.
In this scenario, companies also began to worry about the issue. ESG initiatives have proven to be fundamental not only for the well-being of the planet, but also for the reputation of companies. Consumers are increasingly aware of this need and are demanding from the companies they consume from, including showing themselves willing to pay more for brands that are environmentally responsible. As a trade association, ABES (Brazilian Association of Software Companies) understands that adopting these initiatives is even more important, given the influence and significant impact that the technology industry has on society and the environment and the responsibility that the association has with the companies connected to it, serving as a possible model of good practices and as a promoter of initiatives that can also be enjoyed by members.
The “E” (Environmental) aspect of ESG Initiatives involves actions aimed at reducing environmental impact. Software companies often have a less obvious environmental footprint compared to more traditional industries such as textiles or petrochemicals. However, the energy consumed by data centers, the management of electronic waste that quickly becomes outdated for their purposes and the use of materials in hardware are still relevant concerns. To mitigate these situations, software companies can promote energy-saving practices, sustainable use of resources, and the adoption of green technologies. In doing so, they not only contribute to reducing the industry's environmental impact, but also demonstrate their commitment to being part of the solution to global challenges such as climate change. As an example of this concern, it is noted that ABES already mitigates carbon emissions in its annual events and which works with the Mobilization for the Reduction of Inequality, which proposes the recycling of obsolete electronic devices, reinvesting the value acquired in organizations that promote digital training. A Mobilization, in fact, is open for membership by all members and any company on the market, having already been responsible for collecting more than 90 tons of obsolete products that have gone through the recycling and reconditioning process.
The “S” (Social) aspect refers to companies’ commitment to socially responsible practices. In the context of software companies, this can range from promoting diversity and inclusion in the industry to contributing to technology education and the development of local communities. As a way to improve these possible impacts, companies can seek to create or support training and mentoring programs or form partnerships that aim to reduce disparities regarding gender, race, sexual orientation or any other minority group in the technology area. Furthermore, they can collaborate with social initiatives that use technology to address social challenges, such as access to education, health and basic services. In this section, ABES created the HR Tech, which seeks to mitigate the lack of skilled labor in the technology market, connecting with partners that offer digital training courses and offering a job portal for people trained by these partners. Furthermore, ABES is also concerned with promoting internal debates and involving its members about good practices and anti-harassment and discrimination policies as part of its integrity and compliance program.
The “G” aspect (Governance) deals with transparency, ethics and integrity in corporate governance. As an association of software companies committed to good governance, ABES seeks to influence its members to adopt clear policies, avoid anti-competitive practices and maintain high ethical standards. This not only strengthens trust between companies and stakeholders, but can also help prevent scandals that could damage the reputation of the industry as a whole. All this concern is also correlated with the pillars of ABES, which seeks to act to ensure a business environment that is conducive to innovation, ethical, dynamic, sustainable and globally competitive. With this in mind, ABES has a program called An Ethical Company, which seeks to strengthen the three pillars of current ethics and compliance legislation among its associates, namely: training and qualification; use of a reporting portal and implementation of a coherent code of conduct. Associates who can prove that they have these three pillars solidified in their companies are certified as “ethical companies” by the association. Furthermore, another product offered by the association is its Promotion Guide, open to the general public, where everyone can search for financing lines that are specific to what they are looking for, in order to encourage innovation.
In summary, ESG initiatives play a crucial role in software companies, not only for their ability to improve the image and credibility of companies, but also for their contribution to the creation of a more sustainable, inclusive and ethical sector, the which is quite aligned with the aforementioned objectives of ABES. By adopting responsible environmental, social and governance measures, the association's aim is to play a leading role in building a more positive future for both the software industry and society at large. After all, ABES does not want its slogan to be an empty speech and proves, day after day, that it is fully committed to the objective of helping to build a more digital and less unequal Brazil.
Clara Savelli is a writer, master in ethics and political philosophy, lawyer and international analyst. He has collaborated with ABES since 2020, where he is responsible for ESG initiatives and ABES's adherence to the UN Global Compact.
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