Abstract: The op-ed explores the importance of embracing environmental, social, and governance (ESG) practices for corporations, particularly during turbulent times like the COVID-19 pandemic. Evidence from Brazil suggests that ESG-compliant companies, especially those with strong governance, have historically outperformed the market. During the pandemic, ESG companies fared significantly better than non-compliant peers, indicating the relevance of ESG practices in crisis situations. The findings emphasize the need for regulators, investors, and analysts to prioritize and incentivize sustainable business practices for long-term resilience and superior performance.
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