The Handbook of Board Governance, 3rd Edition

78ESG Disclosure by Privately Held Companies: Learning from a Case Study of a Brazilian Joint Venture

Talles Vianna Brugni, BSc, BBA, MBA, MSc, PhD,

Associate Dean and Professor, Department of Accounting and Finance, FUCAPE Business School

Christiane Carvalho Veloso, MM,

PhD Candidate in Accounting and Business Administration, Department of Accounting and Finance, FUCAPE Business School

Vania Maria Da Costa Borgerth, MSc, MBA, PhD,

Board Member of the Integrated Reporting Framework Board, Council Member of the International Integrated Reporting Council (IIRC), and Coordinator of several working groups on Integrated Reporting in Brazil

Juliana Costa Ribeiro Prates, BSc, MSc

PhD Candidate in Controllership and Accounting, Department of Accounting, Federal University of Minas Gerais

Valcemiro Nossa, PhD

CEO at FUCAPE Business School and Coordinator of the Master’s and Doctoral Professional Program in Accounting at FUCAPE

Abstract

This chapter discusses, through a simplified case study, how nonlisted companies can adequately disclose ESG (environmental, social, and corporate governance) information. We suggest that there is a gap regarding ESG disclosure in privately held companies, indicating a market to be explored. As a result of our research, we recommend the MSCI methodology (Morgan Stanley Capital International—MSCI ESG index) or the tools proposed by the Value Reporting Foundation, which presents fundamentals more appropriate for nonlisted companies. We also suggest ...