environmental criteria, social and governance or ESG– acronym in English that became internationally known – are increasingly being associated by investment managers and regulators with strong businesses., presenting less risk to the climate and sustainability of the planet, and so it has been gaining strength and attracting the market's attention.
The increase in this interest has reached the point where MSCI, leading financial market analyst, declare that ESG indices are becoming more relevant than traditional ones.
The impact of this trend is already beginning to be felt in numbers and in market movements. Even more when the numbers reinforce the argument, according to the new report from Moody's Investor Services, the demand for ESG investments expresses a lasting movement with great growth potential, reaching more than half of the entire asset management market.
According to the survey, the potential market for ESG investments is 89 trillions of dollars, which is the total assets currently managed by the signatories of thePrinciples for Responsible Investments (PRI) da him.
in parallel, even the largest asset manager in the world, a Blackrock, announced the change in the company's positioning, which started to consider sustainability as the main factor in its investment strategies. a big step. The largest asset manager can influence the entire market when its objectives and goals are established based on this tripod.
Sustainability at the center
Given this scenario, the sustainability theme was for the first time one of the most discussed at the World Economic Forum in Davos, held in January. And it's worth remembering, pre-pandemic.
Subjects related to climate issues, like deforestation and clean energy sources, were among the biggest concerns of the participants and guided several meetings in the official program of the event, which drew attention by highlighting the environmental theme and further reinforced the growth of interest in ESG investments.
The importance given to climate risks by businessmen and government officials who attended the meeting was a true example, mainly to Brazil, of the impact that green policies have on different sectors of the economy, as the article by Gabriel Kohlmann reiterates to the Estadão.
Brazil and ESG investments
While many countries have been dedicated to strengthening good environmental and social practices in business for some years now, Brazilian companies and investors are finally starting to walk in the same direction.
The creation of a council in Brazil by the Global Reporting Initiative (GRAY), leading international organization that develops standards for sustainability reporting, confirms that the country is waking up to the issue and encourages the evolution of ESG investments here.
unquestionably, the concern with climate change is beginning to dominate the investment world and for society this relationship could not be more beneficial: the environment wins, the companies that are dedicated to adopting more humane and sustainable practices win, and the people who are favored by these practices win.
to contextualize, the text was initially written and published by the biophilia, in a pre-pandemic moment. The text brought a vision of what 2020 it would be even without an imminent crisis that would affect us for long months. The most important thing about reposting the text is that the ESG theme was not strengthened during the pandemic, but it gained space and multiple voices for its dissemination.
especially in Brazil, for our serious shortcomings in combating deforestation, in addition to the lack of structure and organization to achieve greater goals in the environmental area, ESG is not only an alternative, it is an achievable solution. We have the problem and the solution.. There is no record in recent history of such an intense movement of organizations with the necessary weight and influence to change the course of development. This time, we can't be left behind.