{"id":39582,"date":"2023-05-19T10:36:23","date_gmt":"2023-05-19T08:36:23","guid":{"rendered":"https:\/\/www.fundacionmicrofinanzasbbva.org\/4-billones-anuales-podrian-cerrar-las-brechas-de-inclusion-y-sostenibilidad-en-10-anos\/"},"modified":"2023-05-24T12:15:37","modified_gmt":"2023-05-24T10:15:37","slug":"4-billones-anuales-podrian-cerrar-las-brechas-de-inclusion-y-sostenibilidad-en-10-anos","status":"publish","type":"post","link":"https:\/\/www.fundacionmicrofinanzasbbva.org\/en\/4-billones-anuales-podrian-cerrar-las-brechas-de-inclusion-y-sostenibilidad-en-10-anos\/","title":{"rendered":"4 trillion annually could bridge the inclusion and sustainability gap in 10 years"},"content":{"rendered":"

ESG criteria confer a positive impact on society, the environment and corporate good governance, while also representing a lever for sustainable growth in the private sector. Furthermore, they have become a mainstream consideration for investors, as there is a positive correlation between ESG ratings and stock returns.<\/p>\n

Currently,\u00a0 88% of listed companies currently have some kind of ESG program<\/strong><\/a>. A figure that showcases the efforts being made by organizations to progress towards a more inclusive and sustainable growth model that leaves poverty behind. \u201cAs we face up to the challenges of climate change and the SDGs, we need more sustainable investments. We must support developing countries so that they make use of ESG-related instruments such as green, social, and sustainable bonds. The OECD is committed to helping them use official flows to mobilize private funding, learning and exchange and to guarantee that the instruments linked to these indicators comply with quality standards and have an impact on development\u201d, highlighted Pilar Garrido Gonzalo, the OECD\u2019s Director for Development Co-operation <\/strong>in her speech during the event \u201cESG: a lever for financial inclusion and entrepreneurship\u201d, held on Thursday in Madrid.<\/p>\n

\"\"

Panel: ‘ESG: a lever for financial inclusion and entrepreneurship’. L-R: Pilar Garrido Gonzalo, director for Development Co-operation, OCDE; Javier M. Flores, CEO, BBVA Microfinance Foundation; Ana Sainz, general director, SERES Foundation; Ram\u00f3n Baeza, managing director and senior partner, BCG Madrid y Rafael Campos, CFO, Ecoalf.<\/p><\/div>\n

The gathering was attended by the heads of several organizations and moderated by Ana Sainz, Managing Director of the SERES Foundation<\/strong>: \u201cFor 14 years we have been working towards a business model that shows that you can make a profit while also having a significant and sustainable positive impact on society. No sustainability and resilience plan can progress unless we focus on the people. \u00a0ESG factors are important strategic components that drive financial results. Integrating them into organizations is the best tool for managing risks and optimizing opportunities in the long term\u201d.<\/p>\n

Regarding sustainable corporate growth, Rafael Campos, CFO for clothing brand Ecoalf, guaranteed that, “We have seen how decisions that benefited the environment also ended up benefiting our business, in the long term, even though in the short term, they weren’t very profitable. This is why we believe that ESG companies have to be understood and assessed with slightly differentiated criteria, compared with the rest.”<\/p>\n

Javier M. Flores, CEO of BBVA Microfinance Foundation (BBVAMF), <\/strong>explained how the Foundation applies ESG criteria: <\/strong>\u201cWe have an internal and an external environmental sustainability strategy. We create products and services specifically to enable the entrepreneurs we serve be more resilient and for their businesses to be more environmental friendly. The social dimension is in our DNA, because our purpose is to drive the sustainable and inclusive development of low-income people in Latin America. Likewise, our governance framework is designed to oversee compliance with this purpose, in line with ethical values and a code of conduct for our 8,000+ employees that encourages diversity, equity and best working practices.\u201d<\/p>\n

Nevertheless, the take-up of ESG in microfinance is still at an early stage and there is much to do to ensure that sustainability is integral to this sector in Latin America.<\/p>\n

\u201cFinancial inclusion through entreprenurship in Latin America”<\/h3>\n

To make ESG criteria assessment more robust, as well as its impact on society, BBVAMF in collaboration with Boston Consulting Group (BCG), has elaborated the \u201c<\/strong>Financial inclusion through entrepreneurship in Latin America\u201d<\/strong> report.<\/p>\n

In his presentation, Giovanni Di Placido, Research Director of BBVAMF, <\/strong>highlighted\u00a0that \u201cin\u00a0 Latin America only a third of the SDG goals are on track to be reached by 2030, according to the latest results of ECLAC\u2019s regional trends to 2030<\/strong><\/a>. To achieve the SDGs the private sector would have to invest nearly 4 trillion euros annually<\/strong>\u201d.<\/p>\n

Ram\u00f3n Baeza, managing director senior partner of BCG Madrid<\/strong>, pointed out that financial inclusion brings with it enormous social benefits: \u201cAccess by the most vulnerable to financial markets is a form of growth that benefits the whole society. Getting a loan to become an entrepreneur means that ideas can be acted upon. Otherwise, the entrepreneur has to save until they have the financial capacity to start. And too often that never happens\u201d.<\/p>\n

The report, in figures:<\/p>\n