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ESG – let’s start applying it in Public Administration and other institutions. The strategic intention of senior managem

Posted: Wed Feb 19, 2025 5:37 am
by olivia25
In last year's texts, we introduced readers of this Blog to what ESG is [1] , its implementation in the Public Administration and other entities that manage public resources, and how to start applying the concept [2] . This year, we will actually start implementing it! This is the purpose of this and the next texts, to present the journey to apply ESG theory, effectively and efficiently!

Recalling previous texts, we point out that ESG is the “set of environmental, social and governance criteria to be considered in the assessment of risks, opportunities and respective impacts, with the aim of guiding sustainable activities, businesses and investments” [3] .

Following the recommended practices in ABNT 2030:2022, the steps to incorporate ESG into an organization include strategic intent, diagnosis, planning, implementation, measurement laos telegram data and monitoring, reporting and communication.

A preliminary step to the above steps is knowledge. In other words, it involves understanding the meaning of the acronym ESG, its context, differentiating it from specific practices that are not included in the objectives of the body or entity, and defining its importance for the Administration. To this end, it is recommended to define thematic groups for comprehensive discussions and research, attend lectures and courses on relevant topics, and, in short, learn about the subject to understand its scope.

After this stage, the steps of the journey are similar to the implementation of an integrity program, starting at the top of the Administration's decision-making body, presenting the strategic intention. In other words, after understanding the conceptual bases and the importance of ESG, the senior management of the body or entity must demonstrate its commitment and engagement with the agenda.

We can list senior administration officials as state ministers, governors and vice governors, mayors and vice mayors, executive secretaries, chiefs of staff, directors and vice governors of Indirect Public Administration, presidents of deliberative collegiate bodies, presidents, directors and superintendents of entities of the S System, holders of direct management and advisory positions and holders of administrative units directly linked to the top manager or the undersecretary and hierarchical equivalents, among others who are at the top of the chain of command and administration.

This commitment and engagement of the management team can be demonstrated by actions such as:

Valuing and giving prominence to ESG actions;
Participation in all training courses offered on the topic, keeping constantly updated;
Establishment of a direct communication channel with the sectors responsible for the agenda;
Respect for established rules and policies;
Approval of relevant documents;
Promotion of governance in the body or entity in ESG;
Allocation of necessary resources in the budget for implementation, review, monitoring, maintenance, improvement;
Exemplary behavior;
Articulating engagement at all levels of the institution; and,
Materialization of commitment in its own internal policy.
This last action, of materializing the commitment in internal policy, represents a fundamental point for the implementation of ESG in the Public Administration, since in view of the characteristic of turnover of these managers in the legislatures, the ESG agenda must represent a true, duly institutionalized state program, and not a government program. Hence the need to materialize it in concrete, stable and durable legal instruments.