ESG Investment Criteria: Return, Risk and Impact

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Have you ever wondered if return and risk are the only things an investor evaluates? At the “ Impact Investment in Latam 2024” event , this topic was discussed at length. It was a day full of insights and learnings about how investors are changing their approach to include social and environmental impact criteria in their decisions. In addition, we had the opportunity to learn in detail about some of the impact projects and funds that are making a difference in the region.

What criteria do investors evaluate in Sustainability?
At the event, it was highlighted that investors not only look at return and risk, but also consider other key factors. Here are three important points that were discussed:

Market size.
Expected return.
Social and environmental impact of the projects.
Associated risk.
Strength and vision of the founding team.
Aligning business growth with impact metrics.
These elements are crucial to understanding how investors are integrating ESG venezuela telephone number data (environmental, social and governance) criteria into their investment theses. Let’s delve a little deeper into each of these points to better understand their importance.

The social and environmental impact
Jorge Mariano Aguado from The Future CO told us how they are helping to reduce rural poverty, which constitutes 80% of global poverty. Their proposal is an accessible solution that costs only $2 USD per day and addresses all aspects, from food to education and infrastructure. In 10 years, they aim to impact 900 communities and 10 million people.

These types of projects not only seek financial returns, but also have a strong social impact component. Investors are increasingly interested in supporting initiatives that generate positive change in society. This translates into a better quality of life for communities and long-term sustainable development.