Sustainability

Sustainable Finance & ESG Investments

Evolutia Capital has become a leading sustainable finance advisor and received widespread recognition for the support we provide to private companies and for assisting Brazilian Government to create public policies and alternative instruments to finance the process of taking due account of environmental, social and governance (ESG) considerations, taking action to combat climate change.


We are intensifying the support we provide to help our portfolio of clients thrive in the low-carbon transition and build a more sustainable future, bringing together our dedicated ESG Solutions Team of experts to develop tailored solutions for them – from government bodies and multinational companies to investors, savers and even the most heavy-emitting sectors we are successfully guiding to progressively decarbonize, while helping to ensure a just and stable transition to maintain financial stability.

How did we get here?

In 2015, landmark international agreements were concluded with the adoption of the UN 2030 agenda and sustainable development goals and the Paris climate agreement. The Paris climate agreement, in particular, includes the commitment to align financial flows with a pathway towards low-carbon and climate-resilient development. As part of the goals, worldwide financial markets will mobilize at least $ 2 trillion of sustainable investments over this decade.


In this context, Sustainable Finance relates to the instruments, frameworks and infrastructure that enable the raising and allocation of capital to activities that can promote the sustainable and low carbon development. Such activities are those that, at the same time, (i) comply with legal and good practice standards in terms of Environmental, Social and Governance (ESG) aspects and that (ii) can provide environmental and/or social benefits, especially in the context of a transition to a low carbon economy.


ESG Investments are those that regard compliance with ESG-related legal and good practice standards as a crucial factor in terms of investment risk assessment.


To this end, in 2017 Evolutia Capital teamed up a multi-disciplinary team with the purpose of developing the knowledge related to the design of sustainable financial instruments in Brazil, that can enable the transition to a greener and low-carbon economy.


To that extent, knowledge-development and sharing is a cornerstone of our Sustainable Solutions team´s work. We are continuously in the lookout for new solutions and trends related to ESG opportunities and risks, and for this purpose we actively engage in several discussion and educational initiatives such as the Brazilian Financial Innovation Lab (LAB) – a joint initiative between (i) Inter-American Development Bank, (ii) Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, (iii) Securities and Exchange Commission (CVM) and Brazilian Development Association (ABDE) - established to identify, develop and support implementation of transformative finance instruments that can drive funds for Brazil’s social and environmental priorities, which has been coordinated by Evolutia Capital since 2018. We have created, developed and implemented more than 35 innovative sustainable finance solutions in these 3 years at the helm of LAB for both private and public sectors.


Our team is part of the critical mass of professionals that actively contribute to the construction of the legal basis for Sustainable Finance and ESG Investment tools in Brazil.


Our Sustainable Solutions Team also advises national and foreign clients in mapping, designing, drafting, negotiating and executing fundraising structures and investments for sustainable activities, including via bonds issuance, debt security, agriculture and real estate bonds (CRAs and CRIs) and other instruments of the securities market, as well as banking financial instruments, private equity and other innovative and tailor-made solutions through well-structured and sophisticated blended finance mechanisms. Our advice includes structuring social impact business models and identifying investors that can match the fundraising instrument.


Evolutia Capital also provides tailor-made assistance to clients in terms of mapping and managing risks and opportunities related to ESG aspects, by providing legal analysis and a framework to incorporate an ESG risk-management into their practice.


Our significant transactional experience allows us to have a more comprehensive and business-objective approach in the context of Sustainable Finance and ESG Investments.

Insights on Sustainable Finance & ESG Investments

Sustainability: a $2 trillion market

By Profile Profile • April 20, 2021
In June 2019, a group of 88 investors with nearly $10 trillion in assets publicly called for more transparency on environmental impact data from 707 companies based in 46 countries. With a joint market value of more than $15 trillion the group includes from large fossil fuel companies such as BP, Chevron to online retail giants Alibaba and Amazon. The appeal requires standardized dissemination on global carbon emissions dissemination network platform. It's not an isolated movement. today more than 1,700 asset managers totaling $80 trillion have already incorporated environmental impact data into their investment analysis. Among them is the world's largest asset manager, The American Black Rock. The pressure for transparency come from the financial market, consumers and even employees. In the case of Amazon, in an unprecedented effort, more than 6,000 employees signed an open letter to world founder and President Jeff Bezos in April 2019. In it, they call for the release of a robust and immeasurable emissions reduction climate plan for the company whose market value is around $1 trillion. This is a movement that not only impose challenges for companies. New business opportunities in products of around $2.1 trillion are estimated. The world's largest listed stock companies anticipate climate risks of about a trillion dollars, much of it over the next five years. On the one hand there are risks associated with physical impacts: storms, floods, droughts, and forest fires, which affect production, distribution, and sales costs. On the other, there are regulatory risks associated with the transition to a low-carbon economy. Of this amount of $1 trillion reported, about $500 billion is classified as virtually certain, and linked to legal and policy changes. For the oil and gas sector, there is a risk of estimated losses of $250 billion per devaluation associated with unrecoverable assets, which are fossil fuel reserves that must remain untouched to meet the goals of the Paris Agreement. The financial services industry is also on the front line. There is an increasing pressure for more transparency on investments that will force institutions to focus more on green energy and innovation and less on polluting sources.

An economy that operates within planetary boundaries

By Profile Profile • April 20, 2021
In general, there are opportunities linked to increased demand for low emission products and services and low environmental impact such as electric vehicles in the transportation sector or even plant-based burgers in the food segment. On average the potential value of climate-related opportunities is almost 7 times the cost of achieving them. The biggest opportunities are in the supply chain. For example, Walmart, one of the world's largest retailers, has an ambitious policy to reduce greenhouse gas (GHG) emissions from its global value chain by 1 trillion tons by 2030. All suppliers of French cosmetics manufacturer L'Oréal need to have an emissions reduction target. More recently, the American fast food chain Burger King has incorporated into the menu the vegetable burger of American food tech Impossible Foods giving scale to the product. About 125 of the world's largest purchasing companies, which focus $3.6 trillion on purchasing power have the potential to encourage significant environmental changes in their supply chains. Time is scarce in the face of such challenges and it takes a lot of time thinking about great institutional solutions to the transition, when there is, however, a great movement in the private sector and investments in this sense. Every city in the world has some ecosystem of tech hubs where geeks and entrepreneurs gather and where innovative startups arise. In a short time, it will be no different with the sustainability green hubs. Climate change billionaires will emerge. Evolutia Capital is bringing together people who have genuine solutions with investor companies interested in the changes. In the United States and Europe, companies refer certain issues relating to minority engagement and female empowerment through purchasing policies. New products and disruptive business are emerging in the four corners of the world to boost this movement. We seek for these kinds of disruptive businesses and innovative projects in any industry for investment (equity) and to connect them to other investors, ensuring they have the resources required to gain a successful scale, in same way that happened in the digital technology industry.

Sustainability: a $2 trillion market

By Profile Profile • April 20, 2021
In June 2019, a group of 88 investors with nearly $10 trillion in assets publicly called for more transparency on environmental impact data from 707 companies based in 46 countries. With a joint market value of more than $15 trillion the group includes from large fossil fuel companies such as BP, Chevron to online retail giants Alibaba and Amazon. The appeal requires standardized dissemination on global carbon emissions dissemination network platform. It's not an isolated movement. today more than 1,700 asset managers totaling $80 trillion have already incorporated environmental impact data into their investment analysis. Among them is the world's largest asset manager, The American Black Rock. The pressure for transparency come from the financial market, consumers and even employees. In the case of Amazon, in an unprecedented effort, more than 6,000 employees signed an open letter to world founder and President Jeff Bezos in April 2019. In it, they call for the release of a robust and immeasurable emissions reduction climate plan for the company whose market value is around $1 trillion. This is a movement that not only impose challenges for companies. New business opportunities in products of around $2.1 trillion are estimated. The world's largest listed stock companies anticipate climate risks of about a trillion dollars, much of it over the next five years. On the one hand there are risks associated with physical impacts: storms, floods, droughts, and forest fires, which affect production, distribution, and sales costs. On the other, there are regulatory risks associated with the transition to a low-carbon economy. Of this amount of $1 trillion reported, about $500 billion is classified as virtually certain, and linked to legal and policy changes. For the oil and gas sector, there is a risk of estimated losses of $250 billion per devaluation associated with unrecoverable assets, which are fossil fuel reserves that must remain untouched to meet the goals of the Paris Agreement. The financial services industry is also on the front line. There is an increasing pressure for more transparency on investments that will force institutions to focus more on green energy and innovation and less on polluting sources.

An economy that operates within planetary boundaries

By Profile Profile • April 20, 2021
In general, there are opportunities linked to increased demand for low emission products and services and low environmental impact such as electric vehicles in the transportation sector or even plant-based burgers in the food segment. On average the potential value of climate-related opportunities is almost 7 times the cost of achieving them. The biggest opportunities are in the supply chain. For example, Walmart, one of the world's largest retailers, has an ambitious policy to reduce greenhouse gas (GHG) emissions from its global value chain by 1 trillion tons by 2030. All suppliers of French cosmetics manufacturer L'Oréal need to have an emissions reduction target. More recently, the American fast food chain Burger King has incorporated into the menu the vegetable burger of American food tech Impossible Foods giving scale to the product. About 125 of the world's largest purchasing companies, which focus $3.6 trillion on purchasing power have the potential to encourage significant environmental changes in their supply chains. Time is scarce in the face of such challenges and it takes a lot of time thinking about great institutional solutions to the transition, when there is, however, a great movement in the private sector and investments in this sense. Every city in the world has some ecosystem of tech hubs where geeks and entrepreneurs gather and where innovative startups arise. In a short time, it will be no different with the sustainability green hubs. Climate change billionaires will emerge. Evolutia Capital is bringing together people who have genuine solutions with investor companies interested in the changes. In the United States and Europe, companies refer certain issues relating to minority engagement and female empowerment through purchasing policies. New products and disruptive business are emerging in the four corners of the world to boost this movement. We seek for these kinds of disruptive businesses and innovative projects in any industry for investment (equity) and to connect them to other investors, ensuring they have the resources required to gain a successful scale, in same way that happened in the digital technology industry.
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