Green finance supports sustainable development by allocating financial resources to environmentally-conscious projects. Companies, society and individuals are pulling in the same direction, making green finance a general trend. But what are the key facts? How to choose from the options available?

Green finance means investments and practices that are environmentally friendly. Recent media and social interest has caused green funding flows (led by green bonds) to grow at a high rate each year, along with alliances between funds, entities and companies. Innovative instruments and traditional financial products place a wide range of options on the table, from green bonds to equity investments and loans that aim to reduce global carbon emissions and implement technologies to develop new means of production.

What key aspects should every green investment have?

1. A long-term view.
2. We must make sure the manager we choose to make these investments has extensive and reputable experience to guide us in the best way that complies with environmental protection standards.
3. The manager must also follow responsible investment criteria internally within its own four walls, and must demonstrate transparency, responsibility and dedication.
4. We must also make sure our investment is aimed at an environmental project that will have a positive impact on society.
5. If we opt for a loan considered “green”, we should make sure it promotes environmental sustainability.