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Latin America trend 2022: The importance of environmental, social, and governance issues will rise

Brands will need to look beyond climate change lip service and create strategies that address consumers’ specific concerns in each of the markets they operate.

Social and sustainability issues are increasingly top of mind for consumers. Fully 94% of internet users in Latin America surveyed by Toluna for Sherlock Communications in August 2021 believed companies should be investing more in social and environmental initiatives.

Consumers in Latin America want brands to address the needs of the communities they serve. This includes bringing diverse voices to the highest levels of their own management and finding ways to build sustainable projects at the local level that support income generation, inclusion, and meaningful employment among the region’s socially vulnerable communities.

Businesses that invest in sustainability initiatives will see returns. Environmental concerns have a significant influence on purchase decisions in Latin America. While sustainability may cost businesses more money up front, consumers are likely to make more frequent purchases over the long term from companies that address the issue. Research shows that regional business leaders feel sustainability is, in fact, profitable and provides them with an edge over rivals.