- As of July 1, the U.S. Shares and International Shares portfolios, of the Protection’s Voluntary Pensions Fund are transformed to invest primarily in assets involving environmental, social and corporate governance principles.
- With this transformation, the company expects to reduce the carbon footprint associated with portfolios by 50%, without affecting their risk/return ratio or stock market exposure.
- This decision, which is of particular importance in this moment of change in our planet, is part of Protection’s historical commitment to sustainability and highlights its leadership in the evolution of Colombia’s financial sector, being a pioneer in the incorporation of ESG policies throughout its investment cycle.
- With this announcement, Protección continues to materialize the roadmap that has been drawn a few years ago and that, voluntarily, has led it to choose issuers that undertake responsible environmental action and that include social and corporate governance principles in its policies.
Based on the premise that environmental, social, and corporate governance (ESG) aspects are as important as financial returns, Protection, as the first AFP in Colombia to be a signatory to the PRI* (Principles for Responsible Investment) and having been incorporating these principles into its investment process, announces that as of July 1, four of its Voluntary Pension Funds’ portfolios will invest exclusively in assets that involve environmental, social and corporate governance principles.
This is how the U.S. Shares and International Shares (with and without hedging) portfolios of the Voluntary Pension Fund will be the first to make an adjustment in their composition, ensuring that the instruments in which they invest will reduce their carbon footprint by 50%, while maintaining their profitability, exposure to stock markets expectation, as well as the defined objective and risk.
This transformation, which is of particular importance in this moment of change in our planet, is part of Protection’s historical commitment to sustainability and highlights its leadership in the evolution of Colombia’s financial sector, being a pioneer in the incorporation of ESG policies throughout its investment cycle.
"In Protection we are convinced that together we build a sustainable future, and this is based on the sustainability of the present. Being consistent with our higher purpose of accompanying our clients in fulfilling their dreams and focusing our efforts on responsibly investing the resources they entrust to us under socially responsible principles, we want to make an increasingly direct and measurable contribution in reducing environmental impacts, contributing to the social and economic impact, as well as becoming allies of companies with exemplary corporate governance. It is a process that we start voluntarily and that allows us to accelerate our commitment to sustainable development, while seeking maximum profitability for all our customers", says Juan David Correa, President of Protection.
The transformation, which Protection took on before 2014, and which has as its important milestone the change that will take place on July 1, will continue to radiate to the other portfolios and the entire protection investment process. This strategic definition materializes the conviction that having socially responsible investments helps improve the risk/return profile, maintain the value of investments in the long term, and contribute to the care of the planet and society.
"This transition will allow our clients to not only be confident that their resources are being invested responsibly and under sustainability criteria, but will allow them to measure their contribution in reducing the carbon footprint of their investments without sacrificing their profitability and wealth construction expectations," Correa concluded.
As administrators of nearly $110 trillion pesos from more than 8 million clients, Protección stands out as a socially responsible company that seeks to contribute from different areas and processes to the conservation of resources, social and economic development of communities and its collaborators, strengthening institutionality and accompanying clients in their decisions with education, inclusion and solutions for financial well-being.