Recent research shows that attracting new investments in key sustainability sectors could help to strengthen the pace of Latin America’s economic recovery from the coronavirus pandemic. In a Natixis Investment Managers survey, an overwhelming 96 percent of institutional investors stated they have an important role to play in addressing global challenges, such as climate change, the need for infrastructure development, and social, and economic inequality. Sixty percent of respondents in the survey said they would be willing to invest in related projects as long as they meet their portfolios’ long-term goals.
However, Latin America and the Caribbean has lagged behind other parts of the world in so-called ESG investing—the practice of using environmental, social, and corporate governance factors in measuring the sustainability and societal impact of a business. Internationally, green bond markets reached $258 billion in 2019, but less than two percent of those issuances were tied to Latin America, data from the Climate Bond Initiative showed. Additionally, a Moody’s report this month stated that ESG risks were cited as material credit considerations in 72 percent of public sector rating actions in 2020, up from 48 percent in 2019. Public-sector issuers, particularly in some emerging market economies, will face critical challenges in funding climate adaptation and social infrastructure, the report states, and emerging market sovereigns accounted for the most references to environmental considerations.
The Inter‐American Dialogue is pleased to convene a panel of experts to discuss the state of ESG investing in Latin America and the Caribbean and ways the region can take better advantage of the trend. The panel will address the following questions, among others:
- How important have ESG principles become in attracting or preventing investment in Latin America and the Caribbean?
- How do Latin America and the Caribbean compare to other regions of the world in their levels of ESG investing, and what more can the region be doing to attract ESG investment?
- To what degree are companies in Latin America and the Caribbean incorporating ESG principles into their business models?
- How can governments and companies in the region build credibility around their ESG commitments, beyond headline‐making announcements?
We invite participants to submit questions using the Q&A function in Zoom OR to email questions to email@example.com.
WATCH THE EVENT LIVE HERE:
President, Inter-American Dialogue (@MichaelShifter)
CEO, GEC Risk Advisory LLC (@GlobalEthicist)
Head of ESG, Atlas Renewable Energy
Vice President, BlackRock Sustainable Investments