Responsible investment is advancing in Latin America and there are more and more investors who are interested and working on the subject because that will be the usual practice in the coming years, economist Eduardo Atehortúa, director for Latin America of 'Principles for Investment Responsible (PRI) ', a global initiative backed by the United Nations.

Responsible investment seeks to integrate "environmental, social and corporate governance (ESG) factors in making the best investment decisions," he explains.
For the PRI, responsible investment is “a strategy and practice that incorporates environmental, social and governance (ESG) factors in investment decisions and asset management. In addition, it complements the traditional techniques of financial analysis and portfolio construction ”.

Atehortúa considers that responsible investment "is increasingly important because it is clearer that the companies and projects in which it is invested must not only generate economic value, but also social and environmental value."

A Hispano-American Congress of responsible investment brought together virtually at the beginning of November, more than 30 experts from Latin American countries, the United States and Europe and representatives of organizations from Colombia, Chile, Mexico, Peru, Costa Rica, Panama, Bolivia, Argentina, Uruguay and Ecuador.

The meeting addressed, in 8 sessions of 4 days, topics such as the best global practices for ESG integration in investment decisions; the challenges of ESG reporting for companies and investors; climate change risk in investments and innovative tools for sustainable financing.

The main conclusion of the meeting was to verify that responsible investment is advancing in Latin America and that there is a growing conviction that it will undoubtedly be the usual practice in a few years, according to Atehortua, who is also a Geopolitics Specialist at Eafit University , Master in Sustainable Development and Corporate Responsibility from the School of Industrial Organization EOI, Madrid.

The idea of holding a Hispano-American Congress on responsible investment arose from events held in Colombia, Chile and Mexico. This year, "several organizations decided to join forces to organize a single regional event that aimed to continue educating the investment market in Latin America so that it understands the importance of implementing responsible investment strategies," he said.

GROWING IMPORTANCE

The origins of responsible investment are not close and are registered since the appearance of investment in the world, but its importance has strengthened and is increasingly outstanding in the face of environmental awareness that is progressing faster on the planet.

Historians mention, for example, that the Quakers and Methodists and other religions had a series of clear guidelines in this regard in the 18th century, although they acknowledge that the idea was strengthened in the 60s of the last century, when the fund sector investment began to become widespread.

En los años 80, la inversión responsable comenzó a cobrar más importancia, cuando se despertó más la conciencia sobre el cambio climático, que se ha convertido en un factor cada vez más decisivo en las proyecciones a largo plazo de las compañías.

The global financial crisis 2008-2009, which brought into account the interdependence of companies, economies and financial markets, made it clear that markets do not always report optimal results for the common good and, although it brought the world down, it contributed to its attach importance "to the role that investors, as long-term owners of companies, play in ensuring proper management," experts say.

North American businessman and financier Larry Fink, president and CEO, since 1992, of BlackRock, the world's largest asset management company, believes that environmental awareness “is changing very fast” and that, in his opinion “ we are on the brink of a structural change in finances ”.

He also admits that "the evidence regarding climate risk is convincing investors to re-evaluate basic assumptions about current finances."

Afirma que investigaciones realizadas por una amplia gama de organizaciones, que incluyen al Grupo Intergubernamental de Expertos sobre el Cambio Climático de la ONU, el BlackRock Investment Institute y otros, al igual que estudios de McKinsey respecto a las consecuencias socio económicas del riesgo climático, “están profundizando nuestra comprensión respecto a cómo el riesgo climático impactará tanto nuestro mundo físico como el sistema global que financia el crecimiento económico”.

They are seeking to understand both the physical risks associated with climate change, as well as the ways in which climate regulations will impact prices, costs and demand across the economy, ”he says.

Likewise, it considers that as “we approach a period of significant capital reallocation, companies have the responsibility - and the economic imperative - to provide their shareholders with a clear vision of how they are prepared. And in the future, greater transparency on sustainability issues is going to be an important component in their ability to attract capital. "

For that and for other binding reasons, next year a new Hispanic-American Congress of responsible investment will be held and Atehortúa announces that, if things go well, it will be in person, and it will be held in Santiago, Chile in the last quarter of 2021.

Source: https://www.portafolio.co/negocios/avanza-en-america-latina-la-inversion-responsable-546756

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