ESG in action.
The basics of how it can shape the future of business.
By Verena Pessim | March 10, 2025
Art by Cássia Roriz
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This is Meio: a platform dedicated to real-world ESG insights. Here, you’ll find articles, interviews, case studies, and tools that bring ESG to life. An initiative by Meiuca ESG, driven by our belief in social and environmental progress, recognizing design and technology as powerful tools to drive change.
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ESG is becoming an increasingly central topic in business and global discussions as climate change, social inequality, and governance crises demand urgent action.
It’s a complex scenario shaped by diverse and sometimes conflicting social, environmental, and political forces. Still, one thing is clear: businesses across all industries must reassess their role and impact in the world.
That’s where ESG (Environmental, Social, and Governance) comes in. It serves as a vital framework for helping build more responsible and sustainable businesses.
Our goal is to make ESG more accessible and inspire you to look at your business and your work through new lenses: one that sees opportunity in sustainability, ethical decision-making, and creative solutions.
So, what is ESG exactly?
ESG stands for Environmental, Social, and Governance. It’s a framework that helps companies go beyond profit and consider the impact they have on the environment, society, and their own management practices.
E as in “Environmental”
The problem:
Rising carbon emissions are driving extreme weather events, disrupting global economies through supply chain breakdowns, cost increases, and resource shortages. Companies that don't adapt may lose competitiveness and risk long-term survival.
The help given by the pillar:
This pillar guides organizations in reducing their carbon footprint, adopting circular economy practices, and investing in renewable energy sources. It also encourages better waste management and the responsible use of natural resources. These actions benefit the planet and drive efficiency and cost savings for businesses.
Here are some examples of its practice:
A tech company that shifts its servers to data centers powered by renewable energy, helping to reduce its carbon footprint.
A cosmetics brand that uses recycled or biodegradable materials for its packaging.
Startups that create solutions to track and minimize energy waste in offices and factories.
S as in “Social”
The problem:
In addition to environmental issues, society is placing increasing pressure on businesses to be accountable for their impact on people. Companies that fail to meet these expectations risk facing boycotts, losing customers, and having difficulty attracting and retaining talent.
The help given by the pillar:
This pillar is about people: employees, customers, communities, and every other stakeholder. It covers important topics such as diversity and inclusion, fair working conditions, data privacy, and social responsibility.
Some examples of its practice:
A design studio that prioritizes diversity when it comes to building teams and focuses on creating accessible projects.
Tech companies that build secure, inclusive platforms while respecting user privacy.
Corporations that invest in training programs for local communities where they operate.
G as in “Governance”
The problem:
Corporate scandals and corruption have severely damaged public trust in the business world. As a result, investors and consumers now expect complete transparency throughout the entire production chain. Governance failures can lead to legal actions, financial losses, and lasting damage to a company’s reputation.
The help given by the pillar:
Governance focuses on transparency, ethics, and effective management. This pillar ensures that companies adopt fair practices, prevent corruption, and make decisions that are responsible and transparent.
Some examples of its practice include:
Corporations that release transparent social and environmental impact reports, showcasing their results.
Companies that implement strong ethical codes and provide training to ensure employees follow them.
Organizations that prioritize gender and ethnic diversity on their boards, fostering more inclusive decision-making.
Excerpt from the Meio manifesto video.
In short, ESG is a path for companies that want to actively contribute to solutions, rather than simply observe the world’s challenges. The best part? When strategically integrated, ESG not only helps create a better future but also boosts business value and competitiveness.
In the design and technology sectors, this means developing innovative solutions, adopting cutting-edge processes, and making more mindful decisions. Companies that fully embrace ESG gain a competitive edge, and that advantage will only continue to grow.
How did the ESG acronym emerge?
While the concept of responsible business practices isn’t entirely new, the term ESG (Environmental, Social, and Governance) was first established in 2004. It emerged from a report called “Who cares wins,” published by the UN Global Compact in partnership with prominent financial institutions. The report was the result of a challenge issued by Kofi Annan, the then UN Secretary-General, to 50 CEOs of major financial institutions. He asked how social, environmental, and governance factors could be integrated into capital markets. The message was simple yet revolutionary: environmental, social, and governance issues weren’t just ethical concerns but essential to long-term financial performance.
This idea gained visibility as investors recognized that ignoring these factors could lead to substantial financial risks. On the other hand, incorporating them could open doors to growth and innovation opportunities. In the end, companies that prioritize the environment, treat people well and maintain transparent governance tend to be more resilient, ethical, and profitable.
Why 2004?
The early 2000s were defined by a series of corporate and environmental crises that served as a wake-up call for the market. Scandals like Enron and WorldCom revealed major governance and ethical flaws in large corporations. Meanwhile, growing concerns about climate change and rising social pressure for companies to take on more responsibility pushed the need for criteria that went beyond financial considerations.
The Scandals That Sparked ESG
The Enron and WorldCom scandals, involving two major American companies in the energy and telecommunications sectors respectively, exposed significant flaws in corporate governance and ethics, ultimately contributing to the development of the ESG concept.
Enron, once valued at $70 billion, concealed billions in debt and inflated its profits, leading to its collapse in 2001 and the downfall of its auditor, Arthur Andersen. In 2002, WorldCom with a net-worth of approximately $180 billion, was caught inflating its earnings by $11 billion, resulting in one of the largest bankruptcies in history.
These scandals shook market trust and prompted the creation of the Sarbanes-Oxley Act, which strengthened governance regulations. Ultimately, these crises highlighted the critical need for companies to be transparent, responsible, and sustainable, principles that would later be encapsulated within the ESG framework.
Triple Bottom Line
Another important concept that resonates with companies leading the way in this movement is the Triple Bottom Line (TBL), also known as the 3Ps: Profit, People, and Planet. TBL says that a business’s success should be measured not just by its profit but also by its impact on people and the planet. This approach encourages companies to balance financial performance with social responsibility and environmental sustainability, ultimately creating long-term value for all stakeholders and not only shareholders.
Triple Bottom Line (TBL), Sustainability Triple.
Competitive Advantage: The Key Differentiator for Companies and Digital Products
Since ESG emerged, it has evolved from a niche topic in sustainability reports to a critical factor for investors, customers, and employees. In the design and technology sectors, this shift has been particularly significant. Companies have realized that embracing ESG is not just about improving their reputation but a way to innovate, mitigate risks, and create solutions that have a lasting positive impact. From inclusive digital platforms to products designed with circular economy principles in mind, ESG is increasingly embedded in the DNA of businesses that aim to thrive in the future.
Why ESG is no longer optional
Conscious consumers demand greater responsibility
Today’s customers are increasingly seeking brands that prioritize sustainability, protect user data, and foster inclusivity.
Example: Apple has committed to using recyclable materials and achieving carbon-neutral operations, while Netflix has integrated accessibility features to serve multiple audiences.
Investors are prioritizing ESG practices
Companies that embrace ESG are viewed as more secure and sustainable in the long term.
Example: BlackRock, the world’s largest asset manager, now uses ESG criteria to guide its investments, pushing global companies to align with responsible practices.
Top talents tend to prefer purpose-driven companies
Skilled professionals are more an more gravitating toward organizations with strong ethical values and clear social responsibility.
Example: Microsoft and Google invest in diversity and social impact initiatives to attract and retain top talent in an increasingly values-driven workforce.
Strict regulations are enforcing responsibility
New global laws are holding businesses accountable for areas such as privacy, emissions, and labor rights.
Example: The European Union has fined digital companies for data breaches under GDPR, and new environmental regulations are pushing electronics manufacturers to meet higher recycling standards.
ESG sparks innovation and operational efficiency
Sustainable practices not only mitigate risks but also foster innovation and drive operational cost savings.
Example: Google’s use of renewable energy to power its data centers not only saves resources but also strengthens its reputation. Meanwhile, Amazon is exploring low-carbon delivery options to reduce its environmental impact in the retail sector.
Conscientizar a empresa é o primeiro passo
In the context of large corporations and digital products, innovating with responsibility isn’t just good for the world as it’s a crucial competitive advantage.
If you’re in a leadership role or part of a major company, it’s time to take the first step: gather your team and stakeholders, and engage them in the ESG conversation.
Raising awareness among your organization is essential. It’s also important to recognize that small, consistent actions can lead to significant long-term results, creating a lasting impact.
The most important thing is to begin. By engaging the right people and establishing a continuous cycle of learning and improvement, you’ll lay the groundwork for meaningful transformation. And rest assured, we’ll explore how to implement ESG practices effectively in upcoming articles.
Stay with us!
Verena Pessim
Chief Design Officer and ESG Lead AT Meiuca