Orange, green and blue are some of the colors that economic activities have been classified.
Six years ago, world leaders set a series of global goals in order to eradicate poverty and protect the planet through a sustainable agenda. In total there are 17 goals proposed by the United Nations (UN).
Over time, mechanisms have been incorporated that allow institutions to comply with these parameters. Thus, at an economic level, new forms of financing and classification were added to the destination of the funds.
The color economy seeks to focus activities through common elements that are associated with one or more sectors. In addition, it seeks to modify linear consumption models.
Economic activities are painted in colors to include more sectors
The economy colors are:
Verde: they are associated with activities that seek to help the environment by reducing environmental risks.
Blue: the importance of the seas and oceans is highlighted, they are placed as the engine of the economy.
Yellow: focus their productive activities on technology and science, aims to reduce production costs in this area.
Red: consumerism, which although it does not classify it as something bad, does warn that it can be without thinking about the consequences.
Orange: activities related to intellectual property, art and culture.
Grey: the legal activities that evade taxes or the tax review correspond.
Negro: focuses on illicit activities such as terrorism, drug trafficking, among others.
Violet: activities that promote gender equity are promoted.
Silver: older adults become the economic engine.
Precisely in Ecuador, spaces are opened for both citizens and companies to contribute to some type of economies, mainly those that contribute to the environment.
“Financial institutions can have a huge effect, mainly by motivating and encouraging their clients to invest in sustainable projects, providing suitable conditions and an attractive offer, and assuming a part of the risk,” said Katarina Zdraljevic, Head of the Environmental Management Unit from Banco ProCredit.
It provides three areas where the bank can become an ally to support a green economy, this is through incentives for green investments, agreements with sustainable actors that become beneficial to customers and finally motivate by example.
How Green Bonds Work for a Sustainable Financial System
From this classification, other products such as thematic bonds have also been incorporated. These are financial credits that are used to finance projects according to their purpose. For example, green bonds target environmentally friendly projects.
In the same way, the orange and blue bonds are known. Social bonds are also promoted to finance projects aimed at improving social welfare. (I)
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