Companies Working for the Environment and Nature Seek Certification to Attract Investments

Practice Is More Common in Small and Medium Enterprises That Are Environmentally Friendly and Seek to Grow Thanks to Attracted Investments

The validation of sustainable practices through certifications has helped companies secure new investments. In this regard, the main participants in this movement are small and medium businesses that trust certification as a means for their growth and seek specific funds for ventures that operate in favor of the environment.
The endorsement granted by the B System, which considers criteria related to environment, community, governance, employees, and customers, has increased the number of certified ventures by about 260% between 2017 and 2022, from 60 to 215 companies. In the last two years, the approvals distributed saw growth: there were 29 in 2019, 39 in 2020, and 45 in 2021.
The Brazilian Vegetarian Society, in turn, awarded the vegan product seal to 240 companies between 2017 and 2021, of which on average 44% are small and 32% are medium-sized. The observed scenario aligns with consumer and public interest. This can be evidenced, for example, by the fact that the search on Google for ESG, an acronym for environmental, governance, and social best practices in companies, has been increasing since 2020 and reached its peak popularity in the last week of April this year.

For B System’s Marketing Director, Sustainability Is an Integrated Concept

Cinthia Gherardi, marketing director of the B System, stated that the pandemic raised many questions and was further compounded by significant moments regarding politics, society, and the environment. According to her, the definition of ESG brings the view that being sustainable is something collective, encompassing social, environmental, and governance aspects.
Among certified B companies, 86.5% are medium and small-sized. The analysis includes a questionnaire with over 200 questions, and the ventures use the certification as a means to attract investments. This is the strategy, for example, of the Casa Feito Brasil group, including the brands Feito Brasil and Quintal Dermocosméticos.
The company is gearing up to receive its first investment, with negotiations set to begin next semester. The business holds the EcoCert seal for organic and natural cosmetics, being recognized as a B Company since 2019.
According to CEO Giulio Peron, the companies of the future are sustainable and the group’s future is growth. He also emphasizes that the ESG agenda is essential for investment funds, and their partners are analyzing this factor with great care and attention, in addition to there being specific funds.
Peron further stated that besides being responsible towards the environment, it is important for the company to have social and financial sustainability. The company has shown revenue growth since 2018 and, from 2019 onwards, has experienced an 82% expansion.

Insecta Shoes Also Grows Based on Investments Attracted by Certification

There is also the case of Insecta Shoes, the only B Company in footwear in Brazil, certified in 2016. In 2018, the company received an investment of R$ 300 thousand, which was a smart money (qualified investment, including consultancy) and brought investors into the daily operations of the venture.
According to Barbara Mattivy, co-founder of the company, the certification certainly legitimized its positioning and brought greater seriousness to the challenges related to environmental responsibility. In 2021, Insecta raised R$ 1.8 million in three months in a crowdfunding round with investors along with Platta, which operates in impact businesses.
Finally, the vegan milk company Nudes is also part of this scenario, having benefited from being, initially, a Pending B Company.
According to co-founder Giovanna Meneghel, if a company has not yet completed a fiscal year, it can apply for this certification, which helps reflect on various aspects that are not on the radar. The brand, created in 2020, became B in October and, in January, received an investment of R$ 25 million from an impact fund.
The information was sourced from the newspaper O Estado de S. Paulo.