Environmental, social, and governance (ESG)
In recent years, sustainable investment has become a key strategy for sustainable economic growth at the International level.
According to Nasdaq, research on European markets shows that issuers that participate in the development of ESG data and indices are the most attractive to invest. Specifically the study concludes that ESG investments in addition to exceeding the expected return have greater resistance to market volatility.
In Europe, sustainable finance represents a factor for capital mobility within the framework of the European green deal, since through an energy transition with low carbon emissions and efficient use of resources, the region can maintain and increase the level of economic activity during the covid-19 pandemic.
In 2019, The International Platform on Sustainable Finance (IPSF) was created, which aims to increase the mobilization of private capital towards environmentally sustainable investments, so that in 2021 the European Union, United Kingdom, Chile, Argentina, Canada, China , Hong Kong, India, the Nordic countries and Kenya aim to develop sustainable finance regulatory measures to help investors identify and take advantage of sustainable investment opportunities that really contribute for the 2021 environmental agenda.
This article is in our Market Outlook 2021
Alejandro Avila Ramírez, BSc in Economics
Laura Díaz Villamil, BSs in Economics