Environmental, social and governance (ESG) factors have gone from being considered externalities to being included in business models as essential components of corporate strategies. According to the evidence and analysis included in several recent studies, there is a directly causal relationship between financial performance and the level of maturity in the management of ESG factors.
Latin America and the Caribbean (LAC) needs to be prepared to respond to and address these market trends. Financial intermediaries play a key role in this regard, as they determine the exchange of goods and services, and the flow of capital. In particular, intermediation through stock exchanges plays a catalytic role in these flows.
It is in this context that the Panama Stock Exchange (BVP) presented to the market the “Guide for the Reporting and Voluntary Disclosure of Environmental, Social and Corporate Governance (ESG) Factors“, which has been prepared with the support of IDB Invest and was in charge of the consulting firm HPL LLC, and which has also been consulted with a working group of capital market actors, representatives of associations and companies that promote these principles.
The Guide aims to provide BVP issuers with tools to easily introduce ESG criteria in their operations, creating sustainability strategies and disseminating their efforts by following simple complementary steps throughout the process.