Asobancaria signs an agreement to promote the circular economy in entities

Asobancaria signs an agreement to promote the circular economy in entities

The Banking and Financial Institutions Association of Colombia (Asobancaria) has signed an agreement to promote sustainable business initiatives in the circular economy by strengthening internal capabilities and providing value with the IDB and IDB Invest.

This agreement will be reflected in an action and follow-up plan for financing circular economy initiatives for Colombian financial entities, members of the Asobancaria Green Protocol.

The project aims to support the implementation of the United Nations Sustainable Development Goals (SDGs) with a focus on circular economy for the financial sector, promoting the creation of a business ecosystem that facilitates the supply of sustainable projects in the circular economy. economy with the sources of finance .

Financial institutions play a fundamental role in accelerating this transition by facilitating the financing of companies and projects that adopt circular business models.

In this line, the Colombian financial system, with the support of Asobancaria, is strengthening its strategy for Green Products and Services under the Green Protocol, where the circular economy is one of its strategic objectives.

The IDB Group has significantly stepped up its efforts to tackle climate change, after announcing at COP26 that it has committed to align 100% of new operations with the goals of the Paris Agreement by January 2023.

To comply with the Paris Agreement, the SDGs, achieve the Net-Zero route until 2050 and face the climate and biodiversity crisis, it is necessary that the investment flow be directed towards sustainable economic activities with a positive socio-economic impact. ecological impact. Circular economy strategies can help reduce investment risk, diversify business models and enable companies to better anticipate stricter regulations and changes in consumer preferences, among many other benefits that point to adherence to national and international sustainability agendas.

Source: El heraldo