Agribusiness and ESG in LATAM

20/06/2022

ESG (environmental, social and governance) criteria refer to environmental, social and corporate governance factors that are taken into account when investing in a company. Companies increasingly incorporate ESG into their language since investors give more and more importance to these criteria when choosing one or another investment.

Every new project related to food production has to demonstrate that it is in line with acceptable criteria from an environmental and social perspective.

It is not for an issue of increasing profitability, but for an issue of awareness that we must find a way to produce food in line with environmental impacts. In LATAM the responsibility is double, due to the geopolitical role countries such as Argentina, Brazil, Paraguay, or Uruguay have in food production. With the responsibility of producing much of the world’s food, they should work to do it in a proper way.

Projects that can develop a compelling ESG strategy become projects that institutional investors begin to analyse, not only regional investors. Long-term investors value sustainability much more than opportunity.

They see the attractiveness of producing food for the world, in a place where natural resources allow you to do it in an environmentally friendly way, in a social environment and being at the same a profitable investment.

Verónica Rodríguez, Finanzas Corporativas from Auren Uruguay