Exploring ESG and circular economy in Brazilian companies: the role of stakeholder engagement

Abstract

Purpose

This study aims to analyze how the Environmental, Social and Governance (ESG) guidelines and the Circular Economy (CE) are being internalized in the companies that are part of the Corporate Sustainability Index – ISE B3, from the perspective of the stakeholder theory.

Design/methodology/approach

Using a qualitative approach, the research was developed with data analysis collected from multiple sources: documentary research in sustainability reports and websites, application of a survey, and conducting in-depth interviews with managers of ISE organizations.

Findings

ESG practices are internalized in the companies surveyed, highlighting aspects of waste management, relationship with communities and anti-corruption. CE practices are still at an early or intermediate stage of adoption. It was identified that in the ESG and circular dynamics, suppliers, customers and employees are primary stakeholders, which have a direct influence on the sustainability context of organizations. Integrating ESG with CE principles provides a systemic view of sustainability, going beyond fragmented approaches that treat ESG and CE as isolated initiatives.

Originality/value

The contribution of the study is associated with managerial support for decision-making. The practical examples presented can be used as a benchmarking parameter, contributing to the planning of organizations that are in the process of transition to CE. The focus on the Brazilian Stock Exchange’s Corporate Sustainability Index (ISE B3) is an original contribution, given that most studies on CE and ESG focus on developed economies or specific sectors. The study offers valuable insights into how Brazilian companies – which operate in the context of regulatory challenges.

Citation

Provensi, T., Marcon, M.L., Sehnem, S., Campos, L.M.S. and Queiroz, A.F.S.L.d. (2025), "Exploring ESG and circular economy in Brazilian companies: the role of stakeholder engagement", Benchmarking: An International Journal, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/BIJ-01-2023-0030