ALF and PwC analyze environmental, social and corporate governance targets

On October 20th, at Palácio Sottomayor in Lisbon, the Portuguese Association of Leasing, Factoring and Renting (ALF), with the support of PwC, held a working session that for the first time brought together members from the three sectors represented by the Association, dedicated to the impacts of ESG on Leasing, Factoring and Renting.

The Roadmap to Carbon Neutrality 2050 estimates that Portugal needs an annual investment, supported by the private sector, of between 27 to 29 billion euros to achieve carbon neutrality. To compare with the European banking average, the Portuguese financial sector should analyze and classify between 10 to 14 billion euros according to ESG risk standards.

It is essential to draw up a strategy to tackle the risks and boost the opportunities related to ESG (Environment, Social and Governance) criteria. Specialized financing must be prepared for the demands of companies and consumers. These warnings served as the motto for the working session held last Friday by the Portuguese Leasing, Factoring and Renting Association (ALF) and PwC, which brought together the members of the three sectors for the first time.

With climate change as a backdrop and the European Union's demands for the adoption of new ESG technical criteria coming on stage as early as 2024, specialized financing institutions have been preparing their operations for the significant costs associated with the transition of environmental rules. With clients increasingly aware of their responsibility for climate change, and valuing practices that respect ESG criteria, ALF members relied on the support of PwC experts to discuss the new paradigm. Among the changes underway are legislation and market trends, particularly "green" financing.