JSEZA Sets Sights On Multi-Trillion-Dollar ESG Market

• The Jamaica Special Economic Zone Authority (JSEZA) is positioning Jamaica to tap into the multi-trillion-dollar Environmental, Social and Governance (ESG) investment market. ESG investing involves investment in companies, which, through their environmental performance, social impact and governance issues, are focused on balancing people, planet and profits. 
• The ESG market is becoming increasingly popular as there has been an increase in environmentally conscious investors seeking to increase their exposure to companies that are in alignment with sustainability and climate-related objectives. 
• According to the United States Sustainable and Impact Investing Trends biennial report, the ESG market was valued at $17.1 trillion in 2020, growing exponentially throughout the pandemic to about $30 trillion. 
• Jamaica is signalling its readiness to enter the market through development of the ‘Sustain-a-Livity’ concept, which was presented to global investors at the recently concluded World Expo 2020 Dubai. This concept in a nutshell includes local companies adopting ESG practices in their operations, which should allow them to experience a greater level of value creation and risk mitigation. 
• On the value creation side, companies that adopt ESG experience stronger growth, greater productivity, higher return on equity and a higher credit rating. As it relates to risk mitigation, they have lower loan and credit default rates, and reduced legal and regulatory interventions. 
• These plans to position Jamaica in the ESG space bode well for local companies as they can adopt practices that will both boost their financial performance and attract investments from environmentally conscious investors.

(Source: JIS and NCBCM Research)