Global standardisation of ESG information to issuers, is key
09/30/2020 Since 4 months

Investors in Mexico joined to request that environmental, social and corporate governance (ESG) risks be considered among the financial risks, in order to achieve a more efficient investment process to create sustainable portfolios.

Over 70 institutional investor signatories consider that climate change is the greatest risk to the global community in terms of impact.

The situation is urgent and demands forceful action from all actors involved. The financial sector has a key role in an orderly transition to a low-carbon economy by incorporating environmental criteria into its investment strategies.

The group of signatories, including: rating agencies, insurance companies, investment funds, asset management, unions (Amafore, AMIB, AMIS and AMAI), the two stock exchanges (BMV and BIVA) and other institutions, specify the need to produce a robust analysis of the climate implications for investment portfolios with quality standardised information according to the industry by the issuers of debt and equity.

Main points:
-Establish a clear strategy to reduce GHG emissions
-Incorporate the risks and opportunities due to climate change into all capital allocation decisions
-Building a corporate governance framework
-Disclose progress on environmental and climate change strategy to investors, considering risks, opportunities, and performance indicators.
-Report ESG information according to the internationally recognised standards issued by the Sustainability Accounting Standards Board (SASB), using as a reference framework the standards issued by the Task Force on Climate-related Financial Disclosures (TCFD)

40.5 billion in new assets was the amount raised by the sustainable funds

This post is also available in: Spanish

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