TerraLex Cross-Border Guide to Cross-Border Guide to ESG and Sustainable Finance

Argentina is at an early stage in the application of responsible investment strategies, as there is no regulatory framework establishing mandatory ESG standards. There are, however, socially responsible investment guidelines that provide information on the responsible investment alternatives in the local market, such as that published by the Argentine Securities Commission. There are also certain tools that allow the application of responsible investment strategies, such as the issuance of Social, Green and Sustainability Bonds; BYMA's special panel on SGS Bonds and the Corporate Governance Code that invites companies to report on their corporate governance practices that include environmental and social factors.

There are socially responsible investment guidelines that provide information on the responsible investment alternatives in the local market, such as that published by the Argentine Securities Commission (CNV). There are also certain tools that allow the application of responsible investment strategies, such as the issuance of Social, Green and Sustainability Bonds; BYMA's special panel on SGS Bonds and the Corporate Governance Code that invites companies to report on their corporate governance practices that include environmental and social factors.

Investment guidelines recommend using performance indicators based on internationally renowned frameworks and rules, the GRI indicators and the SABS Standards of the IFRS Foundation being the most used ones.

Argentina is a signatory to the Escazú Agreement that guarantees access to environmental information. In this regard, the Agreement provides as follows:

1. Each Party shall ensure the public’s right of access to environmental information in its possession, control or custody, in accordance with the principle of maximum disclosure.

2. The exercise of the right of access to environmental information includes: (a) requesting and receiving information from competent authorities without mentioning any special interest or explaining the reasons for the request; b) being informed promptly whether the requested information is in possession or not of the competent authority receiving the request; and c) being informed of the right to challenge and appeal when information is not delivered, and of the requirements for exercising this right.

3. Each Party shall allow access to environmental information for persons or groups in vulnerable situations, establishing procedures for the provision of assistance, from the preparation of requests through to the delivery of the information, taking into account their conditions and specificities, for the purpose of promoting access and participation under equal conditions.

4. Each Party shall guarantee that the above-mentioned persons or groups in vulnerable situations, including indigenous peoples and ethnic groups, receive assistance in preparing their requests and obtaining a response.

No.

In 2001, the Argentine advertising industry adopted by consensus the Code of Ethics and Advertising Self-Regulation and created the Council for Advertising Self-Regulation (Consejo de Autorregulación Publicitaria, “CONARP”) as a non-profit civil association, with legal existence, which promotes advertising self-regulation by advertisers, advertising and communication agencies, the media and each of the industry’s professionals, to promote good business practices and responsible advertising.

The Code of Ethics and Advertising Self-Regulation establishes that advertising must be environmentally friendly and refers to the guidelines that environmental claims must comply with, whether they are contained in advertising, product packaging, labels, or any other form of commercial communication.

The CONARP posts on its webpage, under the title “Environmental Claims in Communications for environmental purposes”, recommendations to avoid falling for false advertising practices known as greenwashing. Please see the following link to the referred webpage: http://www.conarp.org.ar/docs/Conarp-PaperAmbientales-jul2022.pdf.

No.

No. The directors may only be found personally liable and shall unlimitedly answer with their personal property for misconduct in office and violation of the laws and the company bylaws.

No. The directors may only be found personally liable and shall unlimitedly answer with their personal property for misconduct in office and violation of the laws and the company bylaws.

No. The directors may only be found personally liable and shall unlimitedly answer with their personal property for misconduct in office and violation of the laws and the company bylaws.

Argentina is at an early stage in the application of responsible investment strategies, as there is no regulatory framework establishing mandatory ESG standards. There are, however, socially responsible investment guidelines that provide information on the responsible investment alternatives in the local market, such as that published by the Argentine Securities Commission. There are also certain tools that allow the application of responsible investment strategies, such as the issuance of Social, Green and Sustainability Bonds; BYMA's special panel on SGS Bonds and the Corporate Governance Code that invites companies to report on their corporate governance practices that include environmental and social factors.

No.

Argentina is in an early stage in the application of responsible investment strategies, and there is no regulatory framework that imposes ESG-related standards as a mandatory requirement. However, responsible, or sustainable investment can be adopted in many ways. The first steps in the transition to socially responsible investments usually begin with "avoidance" strategies, which imply the elimination of issuers or sectors that engage in controversial activities, such as the sale of fossil fuels, tobacco, weapons, among others. On the other hand, "advancement" strategies involve increasing exposure to positive ESG qualities, either by investing in companies with positive ESG ratings, or only in those with the best ESG ratings.

Finally, the application of responsible investment strategies contributes to the conversion of investors into Socially Responsible Investors that obtain profitability and positively impact the environment and society, collaborating with the fulfillment of sustainable development objectives.

In accordance with the Guide for socially responsible investment in the Argentine capital market prepared by the Argentine Securities Commission (CNV), responsible or sustainable investment can be adopted in many ways. The first steps in the transition to socially responsible investments usually begin with "avoidance" strategies, which imply the elimination of issuers or sectors that engage in controversial activities, such as the sale of fossil fuels, tobacco, weapons, among others. On the other hand, "advancement" strategies involve increasing exposure to positive ESG qualities, either by investing in companies with positive ESG ratings, or only in those with the best ESG ratings.

Finally, the application of responsible investment strategies contributes to the conversion of investors into Socially Responsible Investors that obtain profitability and positively impact the environment and society, collaborating with the fulfillment of sustainable development objectives.

No.

No.

Argentina does not have any specific regulations on greenwashing. However, there are consumer protection rules and prohibited practices related to the production and exchange of goods and services that, even though they do not thoroughly regulate the matter, constitute the legal framework for the subject of your query.

In this regard, the Argentine Constitution provides that consumers have the right to receive adequate and truthful information.

The Argentine Civil and Commercial Code stipulates that providers shall supply consumers with truthful and detailed information about the essential characteristics of the goods and services provided to them, prohibits false advertising, and gives consumer the right to request that any false advertising be prohibited.

The Consumer Protection Law contains provisions similar to those mentioned above and establishes that those that produce, import, distribute, sell, or provide services shall supply consumers or users with truthful, detailed, effective, and sufficient information about the essential characteristics thereof, in a true and objective manner.

According to unfair competition regulations, an act of unfair competition is defined as any act leading to error as to the existence or nature, method of manufacture or distribution, main characteristics, purity, mixture, fitness for use, quality, quantity, price, conditions of sale or purchase, availability, results that may be expected from their use and, in general, about the attributes, benefits or conditions of the goods and services. They also prohibit any kind of presentation, advertising, or publicity that, by means of inaccuracies or concealment, may mislead, deceive, or confuse with respect to the characteristics or properties, nature, origin, quality, purity, mixture, quantity, use, price, sales conditions or production techniques of personal property, real property, or services.

In addition, the Antitrust Law prohibits arrangements among competitors, business combinations, acts or conducts related to the production or exchange of goods or services which have the purpose or effect of limiting, restricting, or distorting competition or access to the market. In turn, the Criminal Code establishes that false advertising intended to divert, for the benefit of the advertiser, the customers of another company may constitute a crime.

The consequences of non-compliance with the provisions referred to above may vary. In case of violation of the consumer protection law, the infringer shall be required to pay for damages, among other penalties.

We have not found any greenwashing-related case law.

There are still no developments in connection with ESG; however, we have identified a bill that was introduced in October 2022 to the House of Representatives of the Argentine Congress which is intended to prevent, fight against and punish greenwashing. This bill establishes the obligations the companies providing goods and services in sustainable marketing and consumer relationships shall comply with and provides for the creation of a registry of sustainable organizations and undertakings and of an environmental sustainability and accountability label.

There are no developments in connection with ESG factors. However, ESG aspects are currently one of the many pillars of M&A processes. Thus, there is a need for the parties involved in such processes to play a role focused on environmental, social and governance issues.