Sustainable Investments: a Brief Overview of ESG Funds in Brasil

By Joaquim Carlos Lourenço

Sustainable investments in English are characterized by their acronym - ESG (Environmental, Social & Governance). Despite its recent rise, the growth and popularity of this type of investment tends to gain more space on the agenda of major international and national players that operate in the capital markets in Brazil.

Still in this decade it is likely that many companies will adopt the concepts of environmental, social, labor, and financial policies that underpin the ESG methodology. Most large companies around the world already have actions in this direction, or are in the discussion, modeling and/or implementation phase. Companies in more developed countries, such as the United States and the European Union, are more advanced in the adoption and adaptation of their structures.

Brazil already has legislation in place that provides guidance on ESG issues for companies and capital markets. However, it is worth remembering that there is still a long way to go to make ESG investments habitual in the country. But the recent launching of two large funds may stimulate the national market.

This book was developed in order to verify, present, and discuss the landscape of sustainable investments in Brazil based on funds that adopt ESG standards. To this end, a bibliographical and documentary research was conducted on the available literature to clarify concepts related to this theme and arrive at the expected results. As shown and discussed in the results achieved, sustainable investment funds are still in a development phase in Brazil, especially those that have the ESG standards.

Nevertheless, the prospects are very good for this sector, since the concern is growing every day, not only with environmental issues, but with all the aspects of society that companies impact.

 

• Language: English
• Publisher: Author's Ed
• Release date: Jul 1, 2022
• ISBN: 9798838271426

Book preview

Copyright © Joaquim Carlos Lourenço

All rights reserved

––––––––

Unauthorized reproduction of this publication, in whole or in part, constitutes copyright infringement (Law 9610).

––––––––

Catalogs

Sustainable, in the social sphere, means economic development with job creation and access to food for all, ensuring the balance of the environment for the current and future generations.

Joaquim Carlos Lourenço

[2022]

ABOUT THE AUTHOR

Joaquim Carlos Lourenço holds a Bachelor's degree in Administration (2009-2006) and a Specialist in Municipal Public Management (2011-2010) from the Federal University of Paraíba. Doctor and Master (2011-2018) from the Federal University of Campina Grande (UFCG). He worked as a professor at the Federal Rural University of Pernambuco - (UFRPE/UAST) in the undergraduate courses of Administration and Information System. He also taught in the graduation course of Public Administration at the State University of Paraíba (UEPB). She has academic experience in the areas of Administration, Information System and Environmental Sciences. He has published scientific articles in (several) national and international events, as well as in national and international journals (magazines). He is a member of the scientific editorial board of double-blind reviews of national scientific journals. But it was in writing that he found his passion, author of several themes, among them: children's books, environmental sciences, and management administration. Writing is something fascinating to me, especially in the genres of children's fiction, the environment, and people management.

PRESENTATION

The growth in investor interest in investment funds that have a more sustainable footprint is undeniable. Sustainable investments in English are characterized by their acronym - ESG (Environmental, Social & Governance). Despite its recent rise, the growth and popularity of this type of investment tends to gain more space on the agenda of major international and national players that operate in the capital markets in Brazil.

Still in this decade it is likely that many companies will adopt the concepts of environmental, social, labor, and financial policies that underpin the ESG   methodology. Most large companies around the world already have actions in this direction, or are in the discussion, modeling and/or implementation phase. Companies in more developed countries, such as the United States and the European Union, are more advanced in the adoption and adaptation of their structures.

Brazil already has legislation in place that provides guidance on ESG issues for companies and capital markets. However, it is worth remembering that there is still a long way to go to make ESG investments habitual in the country. But the recent launching of two large funds may stimulate the national market.

This book was developed in order to verify, present, and discuss the landscape of sustainable investments in Brazil based on funds that adopt ESG standards. To this end, a bibliographical and documentary research was conducted on the available literature to clarify concepts related to this theme and arrive at the expected results. As shown and discussed in the results achieved, sustainable investment funds are still in a development phase in Brazil, especially those that have the ESG standards.

Nevertheless, the prospects are very good for this sector, since the concern is growing every day, not only with environmental issues, but with all the aspects of society that companies impact.

SUMMARY

1.................................................9

Background........................................9

2................................................15

Financial Investments...............................15

3................................................21

Sustainable Development............................21

4................................................27

Environmental Management..........................27

5................................................33

The ESG concept...................................33

6................................................45

Results and discussion...............................45

6.1 Sustainable investment funds.....................46

6.1.1 MSCI KLD 400 Social Index.................49

6.1.2 Euronext® Eurozone ESG Large 80 Index Future.53

6.2 Overview of