Panama, City -- The Panama Stock Exchange (BVP) presented the “Guide for Reporting and Voluntary Disclosure of Environmental, Social and Corporate Governance Factors (ASG)”, which has been prepared thanks to the support of IDB Invest and elaborated by the consulting firm HPL LLC. It was consulted with a working group of important players comprised of the capital markets, representatives of associations and companies promoting these principles.
The new guide seeks to aid issuing companies understand the context, characteristics and market best practices in ESG factor disclosures. Likewise, it has been made available to the general public and includes definitions, benefits of reporting ESG aspects, recommendations for preparing a sustainability report, standards, international methodologies and performance indicators.
In Panama, some companies have geared their efforts toward sustainable development, incorporating the identification of ESG risks in their management and developing practices aimed at meeting the Sustainable Development Goals (SDGs). Despite these efforts, it is necessary to accelerate the pace and encourage issuers listed in the BVP to manage and promote transparent disclosure practices that facilitate investors to make responsible and impact investment decisions, including ESG factors.
Stock exchanges, as the central point of contact between issuers, investors and market intermediaries, have been identified as important catalysts in the transition to sustainable development. The interest in creating this guide was born from the BVP's commitment to the development of sustainable finance in Panama and from the objective of becoming an international hub, which is why it has been complying with the best standards and practices.
“We thank IDB Invest for the constant interest and collaboration in the initiatives that we promote, HPL, the work table and the BVP team for the participatory process for the preparation of this guide, which will be of great benefit to the Panamanian market and that will surely be a reference for the markets of the region due to its quality, updating of global standards and illustrative level,” highlighted Olga Cantillo, Executive VP and General Manager of BVP.
For Gabriel Azevedo, head of the Division of Environmental, Social and Corporate Governance at IDB Invest: “The inclusion of environmental, social and corporate governance factors in business decision-making goes from being optional to a factor of competitiveness. IDB Invest supported the Panama Stock Exchange in the preparation of the guide in its objective of providing issuers with a clear and timely guideline of why, how, and what ESG aspects to report.
The guide has been shared on the BVP website and on the IDB Invest website, and can be accessed directly here:
BVP: See here.
IDB Invest: See here.
The Panama Stock Exchange (BVP) is one of the main self-regulated exchanges in Latin America, with a diversified international infrastructure and with a market value close to USD 39 billion and a trading volume of USD 8.1 billion at the close of 2020. The BVP has an integrated market with the El Salvador Stock Exchange and USD 229 million have been traded since its launch in May 2017 to the end of March 2021. The BVP has the iLink link with Euroclear Bank, through its sister company, Central Latinoamericana de Valores (Latin Clear) with the operational phase since 2014, which includes government and quasi-government instruments.
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $13.1 billion in asset management and 385 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.