ESG investing in emerging markets faces major hurdles despite vital importance

Disclosure seen as key issue

ESG considerations have become core parts of investing in developed markets, but as emerging markets adapt, some fundamental distinctions have appeared between sustainable investing in the two regions.

Robert Horrocks, CIO of Matthews Asia, argued the main difference between ESG investing in emerging and developed markets was that in EM it "actually matters", as it can drive significant change. Not only can investors allocate capital through an ESG lens in emerging markets, but he argued it is "the only place" they should. Investments into emerging market companies can have a greater impact on their sustainability journey than in the developed world, where regulation and culture has already pushed companies to much higher standards. Despite what Horrocks sees as an urgent need fo...