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ESG and compliance: It’s here to stay

Shin Jae Kim (skim@tozzinifreire.com.br) is the head of the Compliance & Investigation practice at TozziniFreire Advogados in São Paulo, Brazil.

Environmental, social, and governance (ESG) practices have been daily trumpeted by companies and professionals, leaving no room for doubt: ESG has come to stay. But enterprises often ask, “What does ESG have to do with compliance?”

The European Union, International Labour Organization, the Organisation for Economic Co-operation and Development, and the Office of the United Nations High Commissioner for Human Rights jointly conduct the Responsible Business Conduct in Latin America and the Caribbean program. The project aims to promote inclusive and sustainable growth by supporting responsible business practices in line with the main international standards. In synthesis, it provides for companies’ duty to conduct due diligence to identify, prevent, and mitigate negative impacts on human rights, labor, anti-corruption, environment, competition, and other relevant issues.

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