The Financial Initiative of the United Nations Environment Program (UNEP FI) and Finis Terrae University, jointly hosted the 1st Seminar on “Climate Change and the Sustainability of the Pension Funds: International Trends,” in Chile on July 2.

The event was attended by FIAP’s Secretary General, Francisco Margozzini; Carolina López, Representative of UNEP FI in Chile; Andrés Pérez, International Finance Coordinator of the Chilean Ministry of Finance; Sérgio Aratangy, Chief of the Financial Division of the Pensions Commission and Roberto Fuentes, Research Manager of the Chilean Association of AFPs.

In the photograph, Francisco Margozzini, FIAP; Carolina López, UNEP FI; Cristina Hubbe, Finis Terrae University; Sérgio Aratangy, Chilean Pensions Commission; and Roberto Fuentes, Research Manager, Chilean Association of AFPs.

This seminar was a forum to raise awareness of the sustainability of Chile’s financial system, and to discuss international progress in these matters, focusing on the importance of considering environmental, social and corporate governance factors (ESCG) in business management.

According to FIAP’s Secretary General ESCG assets provide a longer investment horizon than traditional investments, increasing from an average of 3.2 to 5.3 years. He added that the investment in ESCG assets will soon be a “competitive attribute” for the AFPs, to the extent that members recognize this hallmark when choosing their fund managers. “They also add additional value because they reduce reputational risk,” Margozzini said, suggesting that several studies have proven that these assets have higher returns and lower risk levels than traditional investments.

To review the presentations delivered, please see this link.