Within the framework of the international commitments assumed and in line with the results of the first National Survey of Sustainable Finance and Climate Change, which revealed the growing interest of financial entities to advance in this type of investment, the Central Bank (BCRA) approved the National Sustainable Finance Strategy (ENFS).
It is a program that defines axes and guidelines for the identification and approach of risks and opportunities related to climate change and aims to strengthen and develop the stability of the Argentine financial system.
The ENFS was prepared within the framework of the Technical Committee on Sustainable Finance (MTFS), which since 2020 brings together the sector’s regulators with the aim of developing sustainable finance in Argentina and beginning to promote adequate risk management associated with social, environmental and governance factors.
The axes of the Sustainable Finance Strategy
The approved Strategy proposes five main axeswhich include both financial and non-financial aspects:
1) Regulatory Framework;
2) Common Language and Taxonomy;
3) Generation of information, transparency, reporting, indicators and data analysis;
4) Incentives;
5) Sustainable financial instruments.
And, as explained in the BCRA, “one of the objectives is generate the ecosystem and conditions that allow to identify the alternatives to mobilize the necessary resources to encourage public and private investment for economic and social purposes”, including the country’s climate change mitigation and adaptation goals.
On the other hand, regarding the BCRA, the ENFS defines a framework of general guidelines for action, both in terms of measures aimed at reducing its own carbon footprint, and in the task of accompanying and guiding financial entities. in the incorporation of threats related to climate change in its risk management.
an international trend
The Central indicates that different international forums, central banks and regulatory and supervisory authorities, as well as market participants, have advanced in the analysis of their potential risks and financial implications and have begun to outline alternatives to address them.
In this sense, the ENFS draws on the analysis and lessons learned from other initiatives in the field at a global level, adapting these experiences to the national productive system and the economic and social context.
Source: Ambito
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