Sustainable Finance: A New Approach

Author: Pedro Pérez Manrique

Today, faced with the environmental challenge, the interests of citizens, consumers, businesses, and Finance seem to be aligning in an unprecedented way.

Can Finance be an ally of sustainable development?

Despite being associated by definition with short-term bank loans while sustainable  development issues are addressed, there are  now many signs pointing to an evolution in the financial sector from a longer-term perspective.

This sector has not given up on profits. Still, now the “Financial Stakeholders” recognize that companies that put sustainable issues at the center of their business models tend to be healthier economically since companies that act responsibly and guarantee healthy practices minimize risks.

These statements can be summarized as:
1- Ecological regulations are adding conditions to the license of industries to operate. States and governments are increasingly refusing to take control of the adverse effects of industrial activity.

2- Companies committed to supplying sustainable products and solutions, which are also produced responsibly, improve their competitiveness, generate more profits, and create long-term value. For example, when we invest in new generation green plants, we reduce the volume of raw materials used and improve productivity.

3- The third aspect highlights a change in the current labor market. Future generations reject employers who have not embraced the green imperative as their primary concern. The message is simple: “If you deprive us of our environmental capital, we deprive you of your human capital.”

These are aspects of great importance when addressing the sustainability of our production systems; our values ​​cannot be left at home when we go to work every morning. This fictitious separation between personal and professional life must be a thing of the past.

In this way, the interest of Finance in supporting sustainable transition companies is growing. In this way, the financial sector can become a crucial ally in the radical ecological transformation that we must all implement to face these novel challenges.

CONTACT: Pedro Pérez Manrique – plpm80@gmail.com