**Brazil**: A new report reveals that Brazilian enterprises are ramping up technology investments focused on sustainability, driven by environmental risks and regulatory changes. Companies are increasingly seeking strategic partners to integrate sustainable practices, while advanced technologies are reshaping their approach to data management in ESG performance.
Many enterprises in Brazil are increasingly focusing their technology investments on environmental sustainability, according to the newly released 2024 ISG Provider Lens™ Sustainability and ESG report. Published by Information Services Group (ISG), a global technology research and advisory firm, the report highlights a significant shift towards adopting environmental, social, and governance (ESG) practices among Brazilian companies.
The report indicates that despite recent advances, some organisations are still lagging in taking substantial action towards sustainability. The heightened awareness of climate change issues—amplified by recent severe storms and forest fires—has prompted companies to consider the potential cost spikes and supply chain disruptions associated with environmental risks.
Bob Krohn, an ISG partner, noted, “Brazilian companies with sustainability commitments are recognizing that long-term initiatives must have business benefits that outweigh the costs.” This suggests that firms are beginning to connect sustainability practices with their financial performance.
Investment in renewable energy, energy efficiency, and sustainable technologies is on the rise; however, the report emphasizes that integrating these practices into existing operating frameworks necessitates substantial investments in research, infrastructure, and staff training. Service providers are playing a key role in facilitating this transition by offering the tools and expertise necessary for effective implementation.
The report also reveals a notable increase in the utilisation of advanced technologies to enhance sustainability and meet ESG demands. This includes the application of artificial intelligence (AI) and machine learning (ML) to improve data management related to ESG performance. Generative AI is being used in the design of sustainable products, while automation and Internet of Things (IoT) technologies are aiding in efficient resource management.
A shift towards data-driven decision-making in ESG performance is gaining momentum, driven by increasing demands for real-time data platforms that facilitate transparency and traceability. Starting in 2027, Brazilian companies will be required by national regulations to assess their social and environmental risks—expected to further enhance the market’s scope for ESG-related data services.
Furthermore, the report mentions the rise of operational technology that aligns with sustainability goals. More enterprises are using automation to mitigate waste and emissions, while innovations like digital twins and blockchain are emerging as tools to monitor emissions more accurately.
Jan Erik Aase, a partner and global leader at ISG Provider Lens Research, said, “A growing number of Brazilian enterprises are seeking strategic partners to help them embed sustainable practices in their operations.” This reflects a broader trend in which service providers are seen as essential partners in planning and monitoring sustainability initiatives.
While some companies are making strides, the report also points to a slower corporate response in areas of social sustainability and increasing adherence to circular economy principles.
The report evaluates 66 providers across various categories, identifying firms like Accenture, Capgemini, IBM, and Wipro as leaders in sustainability services. PwC has been highlighted as the top performer in customer experience among Sustainability and ESG service providers, achieving the highest satisfaction ratings according to ISG’s Voice of the Customer survey.
As Brazilian enterprises navigate the complexities of sustainability, the report underscores the crucial role of technology and strategic partnerships in meeting ESG goals, while pointing towards a future where compliance with environmental regulations will be increasingly essential.
Source: Noah Wire Services
