The importance of ESG

A while ago, we talked here on our website about a very interesting subject, ESG. And today, we are going to introduce you to some types of ESG for you to get even more inside the subject.

ESG Investments

 An ESG investment encompassed, socialis and governance in its analysis. That is, it goes beyond the measures that are efficient as companies that the investor in its entirety.

Anyone who buys shares on the Stock Exchange has likely already invested in an ESG company. This is why most blue chip companies that attend the Ibovespa meet the criteria of this sustainability índice.

Socially responsible investing strategy. Corporate sustainability performance. Vector illustration, flat, clip art

ESG in the Financial Market

Namely, there are different ways to invest in ESG in the financial market. This is made possible through Funds of Funds (FoF), which directs its capital to equities that are not given and Fixed Ren Investments, but these are like the only categories of ESG investments.

As with other categories, ESG titles of deity are also possible. They are called ESG Thematic Bonds and are aimed at socio-environmental objectives for projects that have had a positive and real impact.

This type of title is categorized according to its objectives:

  • Greens: representG environmental protection to energy, reduction of protection, conservation of other links;

  • Social Bonds; to food security generation projects, for example Bondsambienta

  • (Sustentais) is a socio-environmental project.

Companies that want to achieve ESG goals can also issue Sustainability-Linked-Bonds. However, for this, they need to have clear and well-defined measures to monitor the initiatives.

For example, they can define that they want to reach 95% of electricity use by 2028. They can also say that they want to reduce carbon dioxide by 2030.

Sustainability indices at B3

B3 has Corporate Sustainability Indexes. Tools assess the performance of companies on ESG. Know more about them:

ISE B3

The Corporate Sustainability Índice (ISE B3) represents a category of assets that meet the determination of methodology established in the methodology. The purpose of this índice is to act as a performance indicator of the quotations of the selected companies’ assets. This selection is made through recognition of the company’s commitment to corporate sustainability.

In this way, investors are supported in decision-making and with ESG best practices. Only shares of entire companies on B3 that meet pre-determined ISE B3. On the other hand, they are long from this stock índice that are in: In addition, B3 has the ESG Workspace Platform, which contains the performance of companies participating in the ISE B3 2021-2022 portfolio selection process. Thus, a platform will help users to define strategies based on notes and data related to ISE B3.

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