Green investment and climate change

Greetings community, a few days ago I attended a conference on green investment invited by an environmental group to which I belong. I will give you a summary of how things are going in the world and especially in Latin America on this topic. There is a potential impact, current and future, of retail investment on this issue, which is important if one takes into account that in 2023, 88.6% of retail investors in the world indicated that they have a predilection for sustainable products, even if they are not familiar with this type of investment. The so-called green investment, to support the consequences of climate change.

Source

The climate emergency represents a great risk for the planet and this is how we as human beings feel it, being affected by all the consequences, for individuals and also for savings, due to this it is important that as clients and small investors we are informed. When an investment is sustainable, it is intended that the economic resources that have been invested will be used in the productive or capital sectors that have adopted environmental objectives, such as the reduction of climate change; or social, among which is the protection of human rights; and good administration, in addition to policies to avoid corruption. There are a variety of green financial products: mortgages, deposits, bank accounts, pension funds, stock purchases, among others.

In Latin America and the Caribbean, investment in green bonds multiplied by eight over the last five years. Given the fragility of the region, it is estimated that the area will demand some 30 billion dollars annually to address events linked to climate change, as well as 120 billion for moderation actions and action in this regard. This provided by sources at the conference, direct actors in green investment projects in Latin America.

According to the information provided by the biennial report Global Sustainable Investment Review 2023, a copy of which was delivered at the conference, it shows the prevalence of sustainable investment in the global investment sector. As can be seen, the global climate panorama is reorienting investments towards new business opportunities that, in addition to being profitable, are more environmentally friendly.