Global Sustainability: A primer on ESG investing in Latin America

ESG Investing is growing rapidly in the region. As of September 2020, 56 asset owners and asset managers, with combined assets of over $700bn, have signed on to the Principles for Responsible Investment (PRI). The growth rate of PRI signatories in Latin America is faster than any other region in the world. We analyse the dynamics of this growth.

The future of ESG investing will be influenced by the economic structure, environmental vulnerabilities and strong consumer preferences for sustainability across Latin America. Slowing economic growth, high levels of unemployment and labor informality, a significant reliance on natural resources, the unique global importance of the Amazon and the importance of sustainability for consumers are among the key factors.

In our report, we sketch out our ESG Integration Roadmap, and we describe the ESG Industry Risk Radars, where we analyse the impact of ESG drivers on industry competitive landscapes and collaborate with covering analysts to tease out material ESG issues and the their investment implications for sectors and companies.

For public policy, the key questions relate to the future of ESG financial regulation and more broadly the balancing of economic growth and environmental sustainability. For business, the key questions relate to strategies regarding environmental protection and employment. For consumers, the key questions relate to the translation of sustainability preference to consumer behaviour.