Quick ESG Investor guide

With its pioneering ESG Practice (Environmental, Social and Corporate Governance) now in operation for over a year, Mattos Filho is releasing a limited series of ESG guides to assist stakeholders in understanding how to align their business with ESG’s main principles and concepts.

Given the recent spike in ESG-related investment in Brazilian financial markets, this first guide focuses on accredited and unaccredited investors.

The guide aims to clarify certain basic concepts concerning ESG criteria, highlighting the main social, environmental, and governance issues that investors should consider. Furthermore, it provides a brief overview of the regulatory situation in Brazil, outlining recent regulatory developments – especially those related to capital markets and financial institutions.

The ESG Investor guide also contains information on the main market indexes, basic concepts applicable to sustainable bonds, and Brazil’s currently booming market for green bonds, social bonds, and sustainability-linked bonds.

Finally, the guide suggests and explains a number of good practices for identifying the quality of ESG criteria-based investments that consider international standards, recognized certification, and positive commitments, such as clear policy for investing in thematic funds. This can help investors avoid ESGwashing, greenwashing and other similar deceptive practices, in which activities or assets are declared sustainable without actually being so.

Click here to access the complete ESG Investor guide:

• English
• Portuguese
• Spanish
• French

*The summary of this article is available in French, Japanese and Italian at this link.