• This tool will facilitate identifying projects that strengthen the competitiveness and productivity of micro, small, and medium-sized enterprises (MSMEs).  
• Its purpose is to provide a clear signal to financial institutions, corporate enterprises, investors, and other stakeholders, facilitating investment decisions that generate social impact and investment returns.

GUATEMALA CITY - IDB Invest, the Sustainable Finance Advisory Council of Guatemala, and CentraRSE have launched a pioneering tool called the Social Finance Taxonomy to help the financial sector identify and promote investments with a positive social impact. This marks a milestone for Guatemala in Latin America and the Caribbean.

This tool will facilitate identifying projects that strengthen the competitiveness and productivity of micro, small, and medium-sized enterprises (MSMEs). It will also help channel resources to improve vulnerable populations' access to financing. Additionally, it will attract impact capital to the country through financial instruments such as thematic bonds.

Taxonomies play an essential role in boosting the capital market and financial and business activity, where MSMEs are key. The launch of this taxonomy is part of the renewal of the Sustainable Finance Protocol, led by IDB Invest and CentraRSE, signed within the framework of the XVIII Ibero-American Sustainability Forum in Guatemala.

The social finance taxonomy represents a classification system that enables the identification of economic or investment activities that contribute to achieving Guatemala's social objectives. Its purpose is to provide a clear signal to financial institutions, corporate enterprises, investors, and other stakeholders, facilitating investment decisions that generate social impact and investment returns.

The taxonomy functions as a voluntary classification tool that helps identify projects and investments with social impact, aligned with clear and measurable criteria. Its application facilitates the segmentation of target populations, the design of financial instruments such as social bonds, and the generation of standardized impact reports.

Banks, financial institutions, anchor companies, and corporations can use this voluntary tool to strengthen their segmentation processes, value chain management, and productive development while improving transparency in measuring social impacts. This approach, designed with the participation of the country's financial and productive sectors, enables the private sector to contribute concretely to closing social gaps.

The Voluntary Taxonomy of Social Finance in Guatemala is available here: https://cfs.com.gt/taxonomia-social/ 

About IDB Invest

IDB Invest is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $21 billion in assets under management and more than 394 clients in 25 countries, IDB Invest offers innovative financial solutions and advisory services that meet the needs of its clients across various sectors. Visit our website: www.idbinvest.org/en. 

About CentraRSE

CentraRSE is Guatemala's leading organization promoting corporate social responsibility (CSR). With over 20 years of experience, it is led by visionary entrepreneurs and driven by an executive team committed to working with businesses and both public and private sectors, promoting sustainability as a business transformer. CentraRSE is officially recognized as the promoter of the Principles for Responsible Banking of the United Nations Financial Initiative (UNEP FI) in Guatemala. It has been named a Strategic Ally of the IFRS Foundation for Central America. It is a member of the IFRS Sustainability Alliance to support the adoption of Sustainability Financial Reporting Standards. Visit our website: https://centrarse.org/. 

About the Sustainable Finance Advisory Council of Guatemala (CCFS)

The Sustainable Finance Advisory Council of Guatemala (CCFS) was founded in 2021 by CentraRSE and IDB Invest, creating a platform for coordination and collaboration among financial organizations, the corporate sector, and other entities interested in sustainable finance in Guatemala. Its mission is to create an active and enduring ecosystem of sustainable finance to facilitate the mobilization of financial capital and promote investment opportunities and the design of financial products to drive a competitive, resilient, and sustainable economy based on triple-impact business models. Visit our website: www.cfs.com.gt.