The Integrated Management System (ISM) is the most strategic way to manage Quality (ISO 9001), Environment (ISO 14001), Health and Safety (ISO45001), and Social Responsibility ( ISO 26000, Guidelines, SA8000 and NBR 16001) and other standards related to various areas.
ESG, ESG, refers to the environmental, social, and governance criteria that an organization demonstrates to its investors and stakeholders as a way to assess its corporate performance and financial aspects. From this, we understand that both three-letter acronyms, ESG and ISM, go hand in hand. In other words, implementing an integrated management system will certainly facilitate the incorporation of ESG concepts into business strategies.
This is because, for an organization to know its maturity level regarding environmental, social, and governance practices, a thorough diagnosis is needed, which can be done through a 360º Diagnostic or through the Materiality process.
Implementation of ISO Standards and ESG Analysis
When implementing ISO standards requirements, the organization undergoes important stages of process adaptation, such as the development of an Integrated Management Policy, process mapping with the structuring of procedures, and deep analysis and systematization of these in relation not only to the quality of products and services but also to the environmentally correct, safe, and healthy way of its activities. This includes compliance with Federal, State, and Municipal regulations specific to the business. These stages will enrich the 360º Diagnostic and Materiality, demonstrating that the PDCA cycle (Plan, Do, Check, Act) is perennial in any strategic phase of the business.
ISO itself recognizes this synergy with the release of PR2030 in 2022, a Recommended Practice translated by ABNT, which aligns principles, concepts, guidelines, and necessary steps for the implementation of the ESG concept, proposing Environmental, Social, and Governance criteria as a starting point for organizations. However, being a Recommended Practice, it is not a certifiable standard.
It is worth noting that each ESG pillar addresses relevant issues, as exemplified below:
E – ENVIRONMENT (MEIO AMBIENTE)
Refers to the environmental concerns an organization should have. For example, how it minimizes environmental impact and participates in initiatives to reduce global warming, greenhouse gas emissions, increase energy efficiency, improve waste management, reduce pollution, and conserve/preserve natural resources.
S – SOCIAL
How the organization practices social responsibility and encourages its partners to do so, such as respect for diversity, inclusion, human rights, social actions, respect for workers' rights, and relationships with the community, etc.
G – GOVERNANCE (GOVERNANÇA)
Adoption of good corporate management practices, including prevention and combating corruption, compliance with applicable regulations, structuring and adherence to codes of conduct and ethics, establishment of audit mechanisms and internal controls, etc.
The themes mentioned above have their related ISOs, such as Climate Change, managed by the ISO 14064series, and many others that assist in managing the Environmental Pillar, with ISO 14001 being the main one. The Social Pillar, which follows the ISO 26000 guidelines. Governance, which is covered by ISO 37000 and ISO 37301. This recognition is fundamental to providing security to market players society, and the organization's stakeholders regarding its commitment to integrity and other Compliance-related matters, significantly influencing the achievement of new opportunities, including reducing reputational, business, and financial risks, among others.
In this sense, companies with an Integrated Management System or certified in any ISO standard alone do not show complete adherence to the ESG concept but are an excellent indicator of good Corporate Sustainability Management practices.
Advantages of Integrating ESG with ISM
The integration of these two themes, ESG and ISM, can offer various advantages, in addition to those already mentioned, including improvements in operational efficiency, strengthening of corporate reputation, and attracting responsible investors.
Thus, with the increasing awareness of environmental, social, and governance issues, the pressure on companies to adopt sustainable practices, transparency in their dealings, and social responsibility is growing. In this context, the integration of ESG and ISM emerges as an important approach to promoting corporate sustainability.
Therefore, ISM provides the structure to manage the multiple aspects of organizational performance, while ESG offers the criteria to assess the social, environmental, and corporate governance impact of the company's operations. Thus, these themes complement each other and provide a solid and well-founded basis for organizations seeking to achieve international standards of excellence.
Finally, it's not about exclusion but addition! It’s not about choosing ISM over ESG, or vice-versa, but
understanding that integrating ESG and ISM opens new perspectives to strengthen Corporate Sustainability management and strategy.
