State of ESG in the CaribbeanState of ESG in the Caribbean https://www.esgenterprise.com/wp-content/uploads/2021/08/state-of-esg-caribbean.jpg 1008 567 ESG Enterprise https://www.esgenterprise.com/wp-content/uploads/2021/08/state-of-esg-caribbean.jpg
What is the state of ESG in the Caribbean? The COVID 19 pandemic caused a lot of havoc in 2020. However, despite the pandemic, one sector that has not been adversely affected is a sustainable investment that involves environmental, social and governance (ESG) factors. In early 2020, the United States grew its ESG investment by 40%,according to the Forum for Sustainable and Responsible Investment reports.
State of ESG investment in the Caribbean
Specifically, Covid 19 showed a huge gap in infrastructure development globally, including the Caribbean. At this point, the Caribbean presents a unique market for ESG investment. Although the region was heavily ridden by corruption, the government and state infrastructures have been put in place to increase its anti-corruption efforts and attract global investment.
Due to this, so many companies are now interested in boosting and building an ethically conscious and socially responsible investment to differentiate themselves and receive attention from international investors.
In 2021, significant progress has been made with public sectors dedicated to encouraging ESG and attracting investors. For instance, the number of subscribers to the region’s responsible Investment Principles tripled between 2019 and 2021. There are now more than 150 members with nearly $1.5 billion in assets under management. As a result, this region is heavily relying on ESG to address financial needs.
ESG in Trinidad and Tobago
In Trinidad and Tobago, the government is committed to the 2030 Agenda for sustainable development. This is why the country’s National Development Strategy, also known as Vision 2030, incorporates the Sustainable Development Goals (SDGs).
In addition, the country’s Voluntary National Review (VNR) showed government commitment to sustainable and inclusive development that carries everyone along. The process aims to engage stakeholders and identify pathways to accelerate actions towards sustainable development and implementing the 2030 Agenda.
Furthermore, the Trinidad and Tobago government follow the whole-of-government and whole-of-society approach to SDG implementation. Due to this, all its nationwide consultations usually involve many stakeholders.
Even with the COVID 19 pandemic, which prevented in-person consultations, the government still carried out engagement using online platforms. In all, the Government of Trinidad and Tobago has reiterated its commitment to ensuring that no one is left behind. Furthermore, it is keen on promoting the inclusive participation of all stakeholders in implementing the 2030 Agenda for Sustainable Development.
Other Caribbean nations
For other parts of the Caribbean nations, the government has made it clear and restated the importance of ESG. It stated that investors might shy away from firms operating with poor track records in environmental compliance, governance, and transparency.
This is particularly critical for companies operating in the extractive industry sectors, which have encouraged the adoption of Blue Economic policies that tap the potential of the local ecosystems to add to a widening ESG investment menu.
Considering the competition for international capital, this trend could provide Caribbean countries with a wider platform to attract foreign and domestic investment.
Looking ahead, tackling corruption and good governance is very important to the Caribbean government. However, for the government to deliver the best package to their citizens, there is a need to maintain systems that promote the public good. In addition, the Caribbean government must put in place more policies that attract ESG investment and gives room for inclusive and equitable societies. This is the conclusion of the state of ESG in the Caribbean.