Driving Sustainability in Emerging Markets: Integrating ESG into EMD strategies

As we transition to a greener economy, finance is playing the crucial role of overseer and enforcer of sustainability. ESG frameworks have given professional investors the ability both to assess organisations’ sustainability performance and to hold them accountable for driving transformation. With investors becoming more knowledgeable about the impact of their investments, interest in ESG is growing faster than ever and Bloomberg predicts that by 2025 ESG AUM will surpass $50 trillion. In spite of the tidal wave of ESG investments in other asset classes, the relationship between Emerging Market Debt and ESG remains fraught with challenges. The high correlation between low GDP per capita, low credit ratings and low ESG scores raises important questions about strategies based predominantly on exclusions, which may have the unintended consequence of depriving poor countries of much needed capital. As appetite for sustainable investment opportunities grows, more thought needs to be given to the relationship between Emerging Market Debt and ESG, to ensure that finance can be leveraged to drive sustainable change in those areas with most need. In Episode 3 of M&G’s Original Series ‘Uncovering Emerging Market Debt ,’ we’re discussing the relationship between ESG and EMD and exploring strategies you can implement to integrate ESG into your EMD strategy. Join us as we discuss: - ESG and Sustainability factors: How to determine their pertinence with respect to EMD - Case studies and best practices: How to apply ESG factors to EMD companies - Can ESG help tackling global economic inequality? - And more…