Alba Aguilar
Director General
Green Finance Advisory Board (CCFV)
/
Expert Contributor

In the Age of Green Finance, a New Investment Philosophy Emerges

By Alba Aguilar | Mon, 11/08/2021 - 11:04

The Green Finance Advisory Board (CCFV) is a representative body of the Mexican financial sector, which arose from the consensus on a series of ideas that we believe are fundamental for moving from a traditional financial market to a more resilient, inclusive, green and socially committed one.

The main ideas are that climate change represents one of the greatest challenges of our era, generating risks and opportunities for society, the economy and investors; financial markets have a big role to play in the response to climate change, as it will require large capital investments in key sectors such as renewable energy, sustainable infrastructure, energy efficiency, water and waste management and sustainable agriculture; and financial solutions require new spaces for public-private collaboration, capacity building, development of new language, performance indicators, standards, tools and innovative products.

On this note, the CCFV emerged in 2016 on a voluntary basis, responding to the growing need in Mexico to develop a sustainable and resilient financial market with a true long-term vision, where its main actors have the capacity to address environmental and social challenges, taking into account the risks and opportunities present in all sectors of the economy.

Our platform has managed to integrate diverse institutions that represent all sectors of the Mexican financial system with a unique proposal and one shared agenda, headed by high-level leaders, whose experience and trajectory strengthen the proposals and initiatives that the CCFV promotes to contribute to the development of green and sustainable finance in our country. It is made up of the main financial associations, institutional investors, development banks, commercial and multilateral banks, independent consultants, academy, rating agencies and corporations, among others.

The CCFV seeks to encourage green and sustainable practices that generate spillover benefits through the creation of capacities and support the development of a comprehensive market infrastructure. Our mission is to promote dialogue between various financial actors on how to push green and sustainable financing toward assets and projects that generate positive impacts on the environment and on society as a whole. Likewise, we aim to raise awareness of the pressing need to address new risks and financial challenges related to environmental, social and corporate governance (ESG) factors, proposing mechanisms that provoke favorable changes in market practices, investment vehicles and existing regulations. And finally, to build and coordinate dialogue with authorities, regulators, governments and interest groups in order to present the vision of the financial market, articulating the agendas of each group, with proposals that allow a significant enhancement of sustainable markets in our country.

Now, we need to measure the impact of capital and the investments, the threats posed by negative externalities and the necessity of the financial sector to reconnect with the real economy. When we talk about green finance, we are talking about financing low-carbon and climate-resilient infrastructure, but we also talk about ESG analysis, disclosure, sustainable strategies and new business models.

To share the best practices in the sector and exchange international experiences, the CCFV has made alliances with the Climate Bonds Initiative, the Green Finance Initiative of the City of London, Financial Centers for Sustainability (FC4S), the Embassy of the United Kingdom, EFFAS (European Federation of Financial Analysts Societies) and IASE (International Association for Sustainable Economy).

Additionally, the CCFV has an extensive educational program through the Sustainable Finance Institute. This section was born as an initiative of the CCFV to promote capacity building in the transition to a sustainable and resilient financial system. Its objective is to train highly qualified professionals for decision-making in climate, environmental, social and corporate governance issues. The Institute for Sustainable Finance offers courses, certifications and seminars that cover the most relevant and current issues in the field of green finance. Participants of the financial system are facing new challenges requiring new capacities, and we are delighted to work with a new generation of professionals prepared to respond to an economy in transition.

The Green Finance Advisory Council is a platform that offers all its members the opportunity to actively participate in the construction and strengthening of the Mexican financial system, in the face of the new challenges that the world's economic transition demands in order to achieve climate and sustainable development goals.

Photo by:   Alba Aguilar