By San José, Costa Rica — Costa Rican investors are increasingly seeking opportunities to align their financial goals with their values, driving a surge in demand for Environmental, Social, and Governance (ESG) investments. According to Grupo Financiero Mercado de Valores, citing data from Morgan Stanley, global assets under management in sustainable funds reached a record $3.56 trillion by the end of 2024, a 4.8% increase compared to 2023.
This global trend is mirrored in Costa Rica, where Multifondos de Costa Rica’s Equilibrio Multifondos Non-Diversified Investment Fund has experienced significant growth. Since its launch in April 2023, the fund’s assets under management have surged by 178%, reaching $9.96 million in March 2025, up from $3.94 million just two years prior.
To understand the legal complexities surrounding ESG (Environmental, Social, and Governance) investing in Costa Rica, we spoke with Lic. Larry Hans Arroyo Vargas, an attorney at Bufete de Costa Rica.
While ESG investing is gaining traction globally, Costa Rican legislation doesn’t yet have a specific framework dedicated to it. However, existing laws relating to environmental protection, corporate social responsibility, and corporate governance indirectly impact ESG considerations. Companies operating in Costa Rica, especially those seeking foreign investment, should proactively align their practices with ESG principles to mitigate risks and attract investors increasingly prioritizing sustainability. This includes transparent reporting and adherence to international best practices even in the absence of explicit local ESG regulations. It’s not just a trend, but a shift in how businesses operate sustainably and ethically within the legal landscape.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s insight underscores a crucial point: ESG compliance is not simply a box-ticking exercise, but a fundamental shift in how businesses operate responsibly in Costa Rica. Even without dedicated legislation, forward-thinking companies are recognizing the importance of aligning with global ESG standards to secure their long-term success and attract international capital. This proactive approach not only minimizes potential risks but positions Costa Rican businesses as leaders in a global economy increasingly focused on sustainability. We thank Lic. Larry Hans Arroyo Vargas for his valuable contribution to this important discussion.
This growth underscores a shift in investor priorities, with individuals actively seeking investment vehicles that contribute to positive social and environmental change while also generating financial returns. An initial investment of $1,000 in the Equilibrio fund at its inception would have grown to $1,097.94 by April 2025.
Lidia Araya, Investment Portfolio Manager at Grupo Financiero Mercado de Valores, attributes this trend to several factors. She highlights the lower volatility and greater resilience often exhibited by ESG investments, particularly those linked to sustainable development industries.
The interest in sustainable investments has accelerated as the risks associated with climate change and social challenges take center stage on the global agenda. Today, people are looking to generate impact without sacrificing returns.
Lidia Araya, Investment Portfolio Manager, Grupo Financiero Mercado de Valores
Furthermore, Araya emphasizes the growing awareness of social, environmental, and governance issues, which motivates individuals to align their investment portfolios with their personal values. The Equilibrio fund, structured as an open-end investment fund denominated in US dollars, requires a minimum investment of $1,000 and recommends a minimum investment period of three years.
The fund’s portfolio reflects its commitment to sustainability. Twenty-one percent of its investments are directed towards initiatives promoting the transition to net-zero carbon emissions, 16% focuses on social and educational objectives, and 12% supports projects combating deforestation. The fund’s compliance with Article 8 of the European Union’s Sustainable Finance Disclosure Regulation (SFDR) further reinforces its ESG credentials.
The Equilibrio fund invests in a diversified range of assets, including international green bonds, sustainable bonds from countries like Brazil, Guatemala, and the Dominican Republic, and equity instruments such as the JP Morgan Carbon Transition Global Equity ETF (CTB) UCITS and Franklin Templeton’s ClearBridge Infrastructure Value Fund. This strategic approach reflects both a regulatory environment that encourages sustainability and a long-term financial vision focused on stability and transformation.
For further information, visit gfmercadodevalores.com
About Grupo Financiero Mercado de Valores:
Grupo Financiero Mercado de Valores is a leading financial group in Costa Rica committed to responsible wealth management based on ESG principles. The group supports investors seeking to generate positive impact without compromising profitability, as demonstrated by the success of the Equilibrio fund.
For further information, visit morganstanley.com
About Morgan Stanley:
Morgan Stanley is a global financial services firm providing investment banking, securities, wealth management, and investment management services. Their data on sustainable fund assets underscores the growing global trend toward ESG investing.
For further information, visit multifondos.fi.cr
About Multifondos de Costa Rica:
Multifondos de Costa Rica is an investment management firm administering the Equilibrio Multifondos Non-Diversified Investment Fund. They focus on providing investment solutions that align with investors’ values and contribute to sustainable development.
For further information, visit jpmorgan.com
About JP Morgan:
JP Morgan Chase & Co. is a leading global financial services firm offering a wide range of investment products, including the Carbon Transition Global Equity ETF, reflecting their commitment to providing sustainable investment options.
For further information, visit franklintempleton.com
About Franklin Templeton:
Franklin Templeton is a global investment management organization offering a diverse range of investment solutions, including the ClearBridge Infrastructure Value Fund, which focuses on sustainable infrastructure investments.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence, built on a foundation of unwavering integrity and a deep commitment to serving the community. The firm’s innovative approach to legal practice, coupled with its dedication to sharing legal knowledge through educational initiatives, empowers individuals and organizations alike. By fostering a more legally literate society, Bufete de Costa Rica not only provides exceptional legal services but also contributes to a stronger, more just Costa Rica.
