The trend shows a growth in registrations linked to investments that integrate sustainable finance. The latest CBI (Climate Bond Initiative) report revealed that In 2021, US$1.1 trillion GSS (Green, Social, Sustainable, Sustainability-linked and Transition Bonds) were issued worldwide. This variable also maintained its growth in the LATAM and Caribbean region, where green, social and sustainable bonds issued by u$s 48.6 billion issued in the first half of 2021 vs. $16.3 billion in 2020.
In Argentina, a total of 26 bonds, from 16 issuers representing u$s 938 million. Of these 14 are green bonds, 8 are social and 4 are sustainable, including the first sustainable bond with a gender approach at the LATAM level.
TOWARDS A SUSTAINABLE BUSINESS MODEL
The financial system is a necessary part and a key instrument to drive change. The world is in constant transformation, with more ecological means of transport, as well as the development of green infrastructures or the transition towards a greater use of renewable energies. To achieve this, markets play a fundamental role in addressing these issues. In this sense, investments with socio-environmental criteria, also called green investments, are essential to mitigate the consequences of climate change as well as other negative social impacts, as well as being a way to obtain better profitability.
“Today the path of sustainable finance is unavoidable for any type of company, no matter its size or sector, because companies that do not have a clear roadmap with an objective of complying with ESG standards have serious risks of not being able to access accessible financing and, in a short time, they will not be able to directly access financing for certain activities. In addition, consumers are under increasing pressure, as they are less willing to buy products if companies do not meet sustainability standards. In this sense, Argentina is on a good path, we in Genneia, In 2021, we raised US$500 million in green bonds in Argentina and in the international market. And this happens because there is interest in sustainable bonds, both from large and small investors or from people who want to invest in companies with a purpose, which are responsible with the environment in which they operate”, ensures Gustavo Castagnino, Director of Corporate Affairs of Genneia, the main renewable energy generating company in Argentina.
Regarding the development of sustainable finance in the rest of the world, the European Commission approved in 2021 its sustainable finance strategy, a comprehensive plan that includes the use of the sustainable investment taxonomy to establish clarity, tools and standards in the field of green financial assets, and regulation on the publication of financial and non-financial information linked to climate impact. The implementation of this strategy will allow for a standardized, comparable and effective driving framework for sustainable investments in the continent. In turn, the European Central Bank approved the guidelines to establish a climate dimension in its monetary policy, an ambitious work plan to incorporate climate criteria in its bond purchase policy, in the macro prudential conditions in the supervised banks —considering climatic risks in future stress tests—and in the collateral requirements in its monetary policy operations.
In this context, the need to disseminate good practices and public and private initiatives, both local and regional, related to this key issue in pursuit of the comprehensive development of society and the environment in which we live, is highlighted.
Thus, the second edition of the Sustainable Finance Award, a contest promoted by the Argentine-Brazilian Chamber of Commerce, Industry and Services (Cambras) It is a space for regional exchange to share good practices and generate a virtuous circle among peers.
Isela Costantini, CEO of GST-Financial Services and member of the board of notables of the award reflect: “It is imperative to work from the board of companies on the concept of triple impact linked to the heart of the business. This is one of the relevant variables that investors look at today when evaluating companies and developments. Our challenge is that not only the large funds leverage these concepts, but with the prize we seek to infect the entire financial ecosystem, to make this a palpable and close reality. In this sense, the Cambras Award collaborates with education, training, and advocacy so that these issues definitely enter the business agenda of large companies and SMEs”
Cambras is a non-profit entity that brings together companies that operate within the Amazon biome, one of the largest and most diverse in the world, and within Argentina, one of the 10 countries with the greatest natural resources. In this sense, it is key that more and more entities raise the flag of sustainability so that the trend and actions to generate a positive change in favor of the planet increase.
Source: Ambito
