THE Ministry of Labor and Employment Ordinance No. 1,419, of August 2024, The amendment to Regulatory Standard No. 1 (NR-1), which updates the current standard, represents a milestone for human resources management and labor law. Effective from May 26, 2026, this change transcends mere legal requirement, positioning itself as a powerful reflection of contemporary social reality and as a strategic opportunity for organizations seeking to align their practices with ESG (Environmental, Social, and Governance) principles.
In a context where mental health has become one of the greatest challenges of the 21st century, the new NR-1 invites companies to redefine their role, transforming compliance into a competitive advantage and a pillar of sustainability.
The new NR-1, by focusing on mental illness in the workplace, expands opportunities for organizations. In this sense, it favors those that wish to go beyond compliance, integrating occupational health and safety into their ESG strategy.
Below are four strategic opportunities related to ESG:
1. Reputation and talent attraction (Social Pillar – S of ESG)
Society undeniably faces a state of profound mental fragility, and the work environment emerges as one of the main catalysts for this scenario. The new NR-1 acts as a direct response from the State to this reality, requiring that the Risk Management Program (PGR) go beyond the traditional physical, chemical, and biological risks.
The inclusion of Work-Related Psychosocial Risk Factors (WRPFs) makes it mandatory to identify and mitigate elements such as work overload, excessive pressure, and toxic organizational environments.
For legal and HR managers, this means that risk management is no longer a purely technical issue, but a responsibility that requires an in-depth analysis of the company's culture and internal dynamics. Companies that prioritize mental health are seen as employers of choice, attracting and retaining talent and strengthening their employer brand.
2. Productivity and reduced absenteeism (Social Pillar – S of ESG)
The management of psychosocial risks, now highlighted in NR-1, transcends well-being and establishes itself as a pillar for the financial and operational performance of the company.
Disorders such as depression and anxiety, often linked to the work environment, are among the main causes of absenteeism and decreased productivity. These events generate direct costs, such as overtime pay and the hiring of replacements, and even more damaging indirect costs, such as the loss of technical knowledge and the overload on remaining teams.
A psychologically safe work environment directly impacts engagement and efficiency. Healthy teams are demonstrably more productive, innovative, and focused. Compliance with NR-1 therefore addresses the root cause of absenteeism and presenteeism—a condition in which the employee is physically present but mentally absent and unproductive.
Active listening as a basis for ESG risk management.
For this management to be effective, the standard establishes the need to implement mechanisms for consulting workers regarding their perception of occupational risks. Because they are often invisible to management, psychosocial risk factors can only be correctly identified with the formal involvement of those who experience them. This process includes:
- Mapping workload overload and pressure to meet targets.
- Assessing the organizational climate using structured tools.
- Analysis of communication and leadership processes that may generate stress.
By obtaining an accurate diagnosis of these factors, the organization can implement preventive and effective actions. For investors and the market, indicators such as low absenteeism and turnover rates are beneficial. (turnover) These are KPIs (Key Performance Indicators) clear examples of the Social (S) pillar of ESG, demonstrating sustainable human capital management that translates directly into better results.
3. Reduction of labor lawsuits (Governance Pillar – G of ESG)
The main consequence of the psychosocial risk management required by NR-1 is the strengthening of the organization's legal security. Lawsuits seeking recognition of occupational diseases of a mental nature, especially Syndrome of Burnout, They have become one of the biggest sources of labor liabilities.
Legally, the central challenge in these processes is proving the causal link between the work environment and the pathology. The Syndrome of Burnout, Classified by the WHO as an "occupational phenomenon" and not a disease in itself, it requires the claimant to undertake the difficult task of proving that chronic work-related stress was the determining factor in their condition.
This is where NR-1 becomes a strategic governance tool. The standard requires the company to move from a reactive stance to a proactive and documented management of psychosocial risks. The Risk Management Program (PGR) becomes the pre-established proof of the employer's duty of care.
By documenting the identification of hazards (e.g., work overload, aggressive targets, workplace harassment), the assessment of these risks, and, crucially, the action plans to mitigate them, the company builds a robust defense.
In the event of litigation, a well-implemented employee health management plan demonstrates that the organization acted diligently to protect the mental health of its employees. This reduces the likelihood of new lawsuits arising. Furthermore, it substantially strengthens the company's defense, aligning it with best corporate governance practices.
4. Market valuation (Governance – G and Social – S pillars of ESG)
Compliance with NR-1 (Brazilian Regulatory Standard 1) is one of the clearest ways to materialize an ESG (Environmental, Social, and Governance) strategy and, consequently, increase the company's market value. Indicators previously restricted to HR, such as absenteeism rates, turnover, and climate survey results, are now rigorously analyzed by investors, ESG rating agencies, and investment funds to assess the quality of an organization's human capital management.
A governance structure that demonstrates proactive care for the mental health of its employees is perceived as a more sophisticated and sustainable risk management approach.
In this context, the standard's attention to the value chain becomes crucial. The requirement to guarantee a safe environment for outsourced workers as well demonstrates that the company's responsibility is not limited to its own walls. For the market, due diligence that extends to suppliers and partners signals maturity in governance and a robust ethical commitment, mitigating risks throughout its operation. In a corporate scenario where human capital is the main asset, mental health management ceases to be an obligation and becomes a value driver and a strategic differentiator.
By identifying and managing psychosocial risks, adapting HR processes, and implementing secure reporting channels, organizations comply with current legislation. Furthermore, they align themselves with the growing expectations of markets and investors regarding ESG practices. In this context, attention to the mental health of employees becomes an essential component of the Social (S) and Governance (G) dimensions. Consequently, it contributes to the company's market valuation and to investors, who seek organizations committed to sustainability and stakeholder well-being.
NR-1 as a strategic lever for ESG
The deadline for full compliance with NR-1, May 26, 2026, is rapidly approaching. Instead of being seen as a threat of sanctions, it should be understood as a catalyst for strategic evolution. After all, the standard goes beyond simple legal compliance. It also offers a clear roadmap for strengthening the Social and Governance (ESG) pillars.
The management of psychosocial risks, formalized and documented through the Risk Management Program (RMP), becomes a multifaceted asset. First and foremost, it functions as a productivity tool which combats absenteeism. Furthermore, it represents a pre-established evidence which strengthens legal defense in labor disputes. Finally, it acts as a indicator of mature governance, capable of attracting investors and talent.
The time has come to act, not out of coercion or fear of fines, but out of the conviction that human capital is the main driver of any business. In a corporate environment where sustainability and reputation are valuable currencies, NR-1 is not just a standard to be followed; it is a manual for building more resilient, humane, and ultimately more valuable companies.