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Latin Americans are increasingly conscious of the way in which their consumption affects the world around them. They are also increasingly aware of how their savings are used in bank investment portfolios. The trend towards sustainable, environmental and transparent investment is growing in Latin America, helping to dispel mistrust about the use of funds and opaque banking practices.
It stands to reason that the public are ardent about the issue. The region plays a critical role in the fight against climate change and many communities are directly experiencing the havoc wrought by rising temperatures, whether through extreme flooding in the south of Brazil or the threat to the natural habitat of indigenous communities in the north.
To succeed in this battle against climate change, a sound green financial system is critical for all, whether individuals, households, businesses or governments. Sustainable finance enables individuals, businesses and organisations to make investment decisions accounting for ESG (environmental, social and governance) considerations.
Our recent quantitative research – spanning six countries and featuring the opinions of more than 3,000 participants for Sherlock Communications – showed that more than 80% of Latin Americans believe their banks should contribute to social and environmental causes. The results of this research, which was published as an ebook, sends a clear message to the financial services industry that there is only one real route to customer satisfaction in the future, and that is through sustainable finance.
Our research was extensive, covering the region’s largest economies of Brazil, Mexico, Peru, Argentina, Chile and Colombia. We analysed participants’ opinions on sustainable finance with regards to the investment portfolios of their banks and the importance they place on green credentials.
Does our research work? Well, the proof is in the pudding. Not only did we provide crucial information for our client, our research findings generated at least 90 media stories right across Latin America, many in tier one outlets.
Sustainable finance isn’t only on the minds of the general public. Green capital markets are growing across the region, with policymakers and financial institutions tackling key issues such as transparency.
Brazil is to launch a regulated carbon offsets market, which has the potential to draw significant inward investment. Latin American GSSSB (green, social, sustainable, sustainability-linked bonds) issuance is expected to surpass 30% of total debt sales in the region for the first time in 2024, according to S&P Global. Interestingly, this is a significantly higher figure than the 12% figure for global GSSSB issuance.
Against such a backdrop, there are clear opportunities for those interested in playing a role in the development of the region’s sustainable finance sector and green capital markets.
Come and talk to us about your interests in this exciting new sector in Latin America and we will develop bespoke market research for your needs.
Talk to us today about your sustainable finance research needs.