In recent years, Pan American Finance has dedicated itself exclusively to advancing the energy transition and promoting clean energy initiatives. It has shown an unwavering commitment to Environmental, Social, and Governance (ESG) principles. Recognizing the imperative need for a sustainable and equitable future, Pan American Finance has integrated rigorous ESG criteria into its investment strategies, ensuring that every project and partnership not only champions the shift towards renewable energy sources but also upholds the highest standards of social responsibility and corporate governance. Through this strategic approach, we are paving the way for an eco-friendly financial future, underscoring the belief that profitability and sustainability can, and should, go hand in hand.
PAF Insights – ESG Edition 01
The past decade has seen ESG investment on an unstoppable rise. ESG is non-negotiable today and is no longer regarded as aspirational to include in investment decisions.
Over $500 billion flowed into ESG-integrated funds in 2021, contributing to a 55% growth in assets under management in ESG-integrated products. ESG is definitely not a short-term fad and investor demand for sustainable investment funds that incorporate Environmental, Social and Governance (ESG) factors has grown through 2022 (USD2.47 trillion worth of assets has been invested in ESG funds through June 2022) and will continue well beyond.
However, ESG is still a slippery concept without widely accepted definitions, criteria and metrics. ESG rating of a single company can vary significantly between different credible credit-rating firms.
A host of proposed new corporate climate and sustainability reporting standards from the ISSB, EU, UK and US, among others, means companies will have to manage increasingly prescriptive driven, and potentially divergent ESG reporting requirements and heightened liability risks for their ESG disclosures.