One of the key challenges facing companies today is to exceed the boundaries of what is known to expand the supply of products and services and ensure business continuity. Currently, within the corporate realm, the sustainability agenda and the integration of socio-environmental and governance issues into business activities pose a significant challenge to be understood and assimilated so that risks inherent in one’s own business can be mitigated, while improving the supply of products and services in line with the real needs of clients. Above all, it is important to review the single-minded and exclusively economic rationale that exerts negative impacts on the whole financial and capital markets structure, and consequently on society, the country and the global economy.
The theme of Sustainability in the financial Intermediation Industry is relatively new and charts different paths from those already established in the business mainstream, bringing to the fore the importance of concepts and information that transcend strictly financial issues to add more value to the business and to the institutional image. Therefore, people are now being called on, be it directly or indirectly, to review their positions and undertake initiatives aimed at responsible investments.
What are we to do in this scenario? How to develop products and services that address these issues head on? What is the legal framework that underpins this new reality? Which working groups can we interact and exchange information with?
In order to share knowledge, reflections and best practices on this challenging issue, B3 consulted with several market institutions to produce this material. B3 thanks the institutions for such fruitful and enriching dialogue. This publication targets brokerage houses, securities dealers and banks to support them in discovering initiatives related to the sustainability agenda and similar issues to add even more value to their business.
For some time now B3 has followed a path towards sustainability-related practices by taking on a series of commitments – it was the first stock exchange to become signatory of the UN Global Compact, it is a signatory founder of the UN-led initiative Sustainable Stock Exchanges (SSE), and a member of the UN PRI - Principles for Responsible Investment (UN) –, encouraging the dissemination of information related to the socio-environmental and corporate governance dimension, and developing criteria, indices and products, such as the special listing segment Novo Mercado, the Carbon Efficient Index (ICO2), and the Corporate Sustainability Index (ISE). This publication also brings a breakdown of some of B3’s initiatives, including its Operational Qualification Program (PQO), which emerged long before the sustainability agenda but incorporated key issues on this theme thereafter.
In this context, it is increasingly evident that these issues have a direct influence on the company’s value and image, insofar as they become a priority for investors and shareholders when making their investment decisions.
In this sense, the content herein should not be taken as a mandatory roadmap, but rather as an incentive to the innovation process. As an example of the work carried out in this field, such as the Novo Valor Corporate Sustainability guide, B3 intends to help its participants to tread this path by providing them with examples and inviting them to reflect on the development of initiatives focused on the reality of each business model.
With every step, an exciting discovery. With every discovery, countless possibilities. With every possibility, business opportunities that contribute to greater transparency and efficiency of Brazil’s financial and capital markets.