Article published in Magazine Canal Solar – Vol. 7, No. 1, February/2026
The inclusion of environmental, social, and governance factors in the evaluation of business performance represents one of the most significant transformations in corporate governance in recent decades. Traditionally, the analysis of organizational performance has focused on financial indicators, such as profitability, return on investment, and cash flow generation.
However, the increasing complexity of environmental risks, social demands, and regulatory requirements has highlighted the limitations of a purely economic approach. In this context, the concept of Environmental, Social, and Governance, known by the acronym ESG, is consolidated as an analytical framework designed to integrate non-financial variables into decision-making processes and investment analysis.
The term gained international relevance following the publication of the Who Cares Wins report in 2004, an initiative of the United Nations (UN). Subsequently, with the creation of the Principles for Responsible Investment (PRI) in 2006, ESG began to guide corporate policies, financing criteria, and regulatory frameworks in different jurisdictions.
Since then, environmental, social, and governance factors have been progressively incorporated into business strategies and institutional investor decisions, consolidating themselves as a structuring element of contemporary management.
Unlike traditional corporate social responsibility, often associated with voluntary actions or philanthropic activities, ESG is understood as a structured system for evaluating risks and opportunities related to the long-term sustainability of organizations.
Their approach is not limited to mitigating environmental damage or promoting isolated social initiatives, but involves the systematic incorporation of these factors into corporate strategy, risk management, internal control mechanisms, and institutional transparency. It is, therefore, a model that connects sustainability to economic materiality and organizational resilience.
The opinions and information expressed are the sole responsibility of the author and do not necessarily represent the official position of the author. Canal Solar.
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