2021 was the year of net-zero emissions commitments. We saw this at COP 26, where countries, companies, and investors aligned to establish plans for decarbonizing economies and focusing on nature and, therefore, on humanity and the path to living sustainably within planetary boundaries.

To achieve short-term goals, swift action is required. Last November, the Glasgow Financial Alliance for Net Zero (GFANZ) committed USD 130 trillion in private capital to reducing greenhouse gas emissions, through more than 450 firms from 45 countries over the next three decades. 

The accelerated allocation of private capital to sustainable investments at scale is based on actionable information, both on risks and environmental impacts, which opens up the debate on so-called double materiality, whereby a company's internal impact (financial) must be given equal importance to its external impact (environment, economy, and people). Faith Ward, chair of the Institutional Investors Group on Climate Change (IIGCC) and head of Responsible Investment at Brunel Pension Partnership, a company that manages £35 billion, is very clear: "Incorporating double materiality is essential for responsible investment and climate integration to adapt to the 21st century. Looking at only half of the equation seems very outdated."

To date, Europe has made the boldest commitment to double materiality, which is explicitly included in the Corporate Sustainability Reporting Directive (CSRD) and its Underlying European Sustainability Reporting Standards. In Chile, we have an important challenge and commitment to incorporate ESG parameters, with public investment plans for an additional US$4.5 trillion above the regular budget from August 2020 to 2022, and US$7.6 trillion in sovereign green bonds issued to date, an amount similar to the green bonds issued by the private sector. 

At Fynsa , we are committed to integrating these parameters through our investment funds: Rockville Solar Energy Fund, the emission of 144,000 tons of CO2 is avoided, equivalent to 1.8 million trees over a period of 10 years. Fynsa Migrante Fundgenerates positive externalities in terms of the social integration of immigrants seeking access to credit, with a portfolio of more than $16 billion at the end of December. Fynsa Energy Fund reduces 78,300 tons of CO2 per year and supplies clean energy to more than 90,000 homes. These and other challenges are part of what is coming in 2022 in terms of impact investing.

AGF Team