2023 Articles

Doing Good and Doing Well: Why ESG Matters in Turbulent Times - Evidence from Brazil

Carvalhal, Andre; Nakao Nakahodo, Sidney

The op-ed explores the importance of embracing environmental, social, and governance (ESG) practices for corporations, particularly during turbulent times like the COVID-19 pandemic. Evidence from Brazil suggests that ESG-compliant companies, especially those with strong governance, have historically outperformed the market. During the pandemic, ESG companies fared significantly better than non-compliant peers, indicating the relevance of ESG practices in crisis situations. The findings emphasize the need for regulators, investors, and analysts to prioritize and incentivize sustainable business practices for long-term resilience and superior performance.