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I have had the privilege of participating virtually in international forums on ESG, Sustainable Finance, the New Economy, Climate Protection and other related topics.

My reading of ESGThe fact is that the United States and Europe are more focused on E, Asia on E+S and Latin America on S.

This week, the results of the entry of telecom operators into the Positive Registry were announced, making it possible to the financial inclusion of 11.1M individuals and companies. It made me think about why the S of the ESG is emphasized in Latin America.

The frameworks reflect the reality of the northern hemisphere. And with regard to the New Economy, also known as the Stakeholder Economy, the question remains: how are the NoHolders? NoHolders are the excluded, who have not yet become Stakeholders.

Given the level of inequality and those excluded from the benefits of full citizenship in Latin America, I bring to the discussion the need to go beyond the Stakeholder and pay attention to the NoHolders, so that we can extract all the economic and social benefits of the New Economy.

I took the example of credit, using the Positive Registry in Brazil, which today already has a positive impact on access to financial resources for those who are not visible to credit. But I would point out that we have other social needs, such as health and safety.

In the experience of Crédito in Brazil, success was only achieved through the alignment of legislation, regulatory agencies, associations, credit bureaus and the private sector's awareness of the socio-economic benefit to clients and the communities in which they operate. The bureaus democratized and evolved credit analysis, including all credit agents, as well as opening up space for the financial education of consumers and companies.

The driving forces behind this initiative have been information technology and the availability of information relevant to the purpose of credit assessment from the sectors that are the source of the information.

Reflecting on this successful model leads to some conclusions with regard to moving the NoHolders to the status of Stakeholders, showing that we can make other similar moves:

1. The active and aligned participation of government, the private sector and society is fundamental to success;
2. Private sector awareness that participation in this type of initiative is good for the company's image, has a positive impact on the company's results (in the CP example, credit accelerates the economy, reduces defaults, creates jobs, distributes income and promotes a more balanced society);
3. An instrument to democratize this inclusion is necessary to spread the benefits to society as a whole;
4. Government regulation aligned with the market brings legal certainty and provides more social welfare, which reduces the cost of the state in welfare programs and provides sustainability;
5. Society benefits from bringing NoHolders to services that are citizens' rights, providing opportunities for educational and economic development and inducing active participation in debates on initiatives to improve social equity;
6. This movement strengthens the socio-economic fabric of society, bringing resilience to adversity and the opportunity to capture the benefits of the New Economy.

These arguments show that, in Latin America, in addition to providing benefits to stakeholders, there is an urgent need for the movement to include NoHolder to maximize the results of the New Economy.

NoHolders

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By: Elias Sfeir President of ANBC & Member of the Climate Council of the City of São Paulo & Certified Advisor