During the COP, Sustainable Inclusive Solutions launched the document “Taxonomies in ESG Finance: international lessons and paths for Brazil,” with paths for the assessment of sustainability of investment portfolios
How can the market stop funding degradation? This is a recurring question in the climate and environmental field and also the title of an article written by Luciane Moessa, from SIS (Sustainable Inclusive Solutions), for Exame, about the launch of the study “Taxonomies in ESG Finance: international lessons and paths for Brazil.” This took place during the COP and was supported by iCS. She explains that green taxonomies is an expression that emerged about six years ago after the Green Finance Study Group of the G20 and other key organizations pointed them out in some reports as being fundamental for: measuring financial flows to the Green Economy and monitoring progress over time; and guaranteeing that certain activities and projects actually have a positive environmental balance in order to be considered green.
“The market needs a framework (to be updated according to technological development) so that it can advance in the direction required by a society that depends on nature in order to satisfy, in the end, all of our needs. This is why SIS launched this study with recommendations for Brazil, based on existing initiatives at a global level in this area,” she says, in an excerpt from the article.
The document shows ways to assess the sustainability of credit and investment portfolios, allowing for the identification, by financial institutions, of activities where they want to direct more or less capital, in addition to guaranteeing that companies are clear about the direction in which they should develop their business strategy if the objective is to have more access to capital or to other benefits that can be established through public policies. Read the article here and the complete document here.