ESG Matters Take Center Stage in Latin America as Region Eyes Sustainability

Randy Bullard spoke to Law.com International about how ESG concerns are impacting M&A, corporate governance and government policies in Latin America.

“There is a growing consensus among various countries that focusing on policies that address environmental degradation, political corruption and social inequality helps attract investors to the region,” said Randy.

According to Randy, ESG considerations [are] still at a nascent stage in the region, with some countries further along in adoption than others.

"Latin America is following the lead of international investors who view ESG as a tool for creating value and minimizing operational risks,” Randy added.

Post-investment, Bullard says private equity and venture capital investors are more frequently requiring governance changes, such as the appointment of independent directors, chief sustainability and chief compliance officers, approval of related party transactions and mandatory periodic assessments.

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