SVS Stock Market in Argentina

Credibility and Control in the use of funds

Abstract

It is unavoidable to say that climate change is one of society´s biggest challenges facing today.

Organizations that produce high levels of greenhouse gas emissions are forced to change their business models, promoting the use of renewable energy based on endless natural resources.

On the other hand, repeated global economic crises have led to a process of financial exclusion, which in turn, leads to greater social exclusion and poverty. From that point, there is an urgent need for a paradigm change that promises a better future for the next generations with a sustainable financial and economic system.

In this process of change, organizations find a new alternative financing mechanism with the issuance of green bonds, which manage to mobilize substantial capital towards clean energy projects and, with the alternative of issuing social bonds, whose funds are assigned to projects that cover the increasing social necessities of a world in crisis.

In this context, investors begin to express actively their interest in making socially responsible investments and, also, to demand better and more information about issuing companies´ ads on financial instruments.

This paper aims to analyze whether compliance with the guidelines, and regulations which rule the SVS stock market in Argentina, guarantees investors the categorizations of the same and traceability in the use of funds.

After the research, it is observed that, although the level of compliance with the regulations of the Argentina SVS stock market is high, it does not assure the investors´ categorization nor the traceability of the use of funds. This is due to partial compliance with some guidelines and the lack of control of regulatory organizations which may increase the level of investor skepticism about those types of financial instruments.