Recycling in ESG has gained relevance in recent years, especially as the concept of ESG (Environmental, Social, and Governance) becomes a priority in the corporate world. More and more companies are adopting sustainable and responsible practices as part of their business strategies, aiming to have a positive impact on the environment and society. In this post, we will explore how recycling fits into this context and why it is a key piece for companies that want to follow the path of positive economy and of the sustainable business.
What is ESG and Why is it Important?
ESG has been gaining prominence as a set of criteria used to measure a company’s sustainability and social impact. In the corporate world, adhering to ESG means focusing on practices that:
- Respect the environment (Environmental)
- Promote social justice (Social)
- Implement ethical and transparent governance
In recent years, especially with growing environmental awareness, the demand for sustainable practices has increased from both consumers and investors. This has led many companies to reevaluate their operations to align with ESG principles. And that's where The role of recycling in ESG becomes fundamental, as recycling practices are essential to minimize environmental impact and promote more efficient use of resources.
Recycling and Positive Economy
Recycling is a crucial part of positive economy, a model that seeks to generate economic value in a sustainable way. In addition to reducing waste, recycling also allows valuable resources to be reused, reducing the need to extract new raw materials. Companies that adopt recycling practices are, in fact, contributing to a circular economy, where the use of resources is optimized and environmental impacts are minimized.
The role of recycling in ESG stands out especially in industrial sectors, such as packaging and electronics, where waste generation is high. Companies that incorporate recycling into their production processes can reduce costs and at the same time position themselves as leaders in sustainable practices.
Environmental Impacts and the Value of Recycling
From an environmental point of view, recycling reduces the amount of waste that ends up in landfills and prevents soil, water and air pollution. In Brazil, 30% of the waste produced has the potential to be recycled, but unfortunately, only 3% of this volume is actually recycled. Among the waste, organic waste represents 56% of the total, being a major source of greenhouse gases when poorly managed.
Recycling organic waste, as proposed by Terraform Kitchen, directly contributes to reducing this problem. The natural recycling system of these machines avoids the use of chemical additives, which makes the process environmentally responsible. In addition, the fertilizer generated by the process is useful for agriculture, closing the sustainability cycle and reinforcing The role of recycling in ESG.
Social Benefits of Recycling
Recycling also has a strong social impact, another component of ESG. In Brazil, selective collection and recycling involve thousands of collectors and cooperatives who depend on this work for their livelihood. When companies incorporate recycling practices, they help strengthen these production chains, generating jobs and income for vulnerable communities.
By encouraging the use of technologies that facilitate recycling, such as Terraform solutions, companies can also educate and raise awareness among the population about the importance of proper waste management. This awareness is crucial for the development of a more just and responsible society, aligned with the pillars of ESG.
The role of recycling in ESG It also extends to social inclusion, offering employment opportunities in a sector that is both necessary and growing. In this way, companies that adopt recycling practices help to build a more fair and egalitarian economy.
Governance and Recycling: How to Integrate into Corporate Planning?
Governance is another central element of ESG, and adopting recycling practices should be part of the corporate strategy of any company seeking to comply with these standards. For recycling to be effective, it is necessary to implement internal processes and policies that ensure the proper collection of waste, the separation of recyclable materials and their correct disposal.
Companies that want to lead in sustainable business should consider partnerships with suppliers and recycling cooperatives, in addition to adopting technologies that promote efficient waste management. Transparency and commitment to these practices are essential to ensure effective corporate governance that responds to global sustainability challenges.
The role of recycling in ESG cannot be underestimated when it comes to governance, as traceability and responsibility in the disposal of materials are aspects that demonstrate the company's commitment to ethical and responsible management.
Recycling: A Competitive Advantage in the Market
In addition to being an environmental and social necessity, The role of recycling in ESG It also offers a competitive edge for companies. Consumers are increasingly paying attention to the sustainable practices of the brands they buy. According to GWI, 721% of global consumers said they care more about sustainable attitudes after the pandemic. This means that companies that adopt recycling practices and other green initiatives have a greater chance of attracting consumers and investors.
Businesses that invest in sustainability and recycling technologies, such as recycling of organic waste from Terraform Kitchen, are better positioned to capture this new profile of conscious consumers. By integrating recycling into their ESG strategy, companies not only contribute to a greener future, but also stand out in an increasingly competitive market.
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