Emerging markets often face a “perception shortfall” compared with developed markets when it comes to environmental, social, and governance (ESG) factors. The truth is emerging markets are driving global economic growth, and ESG factors have never been more important to investors looking to harness this growth. Many investors, however, cling to some false notions concerning ESG in EM that keep them from realizing the sector’s potential.
Here, we dispel five myths about ESG in EM.
Environmental, social and governance risks are higher in emerging markets (EM) than in developed markets (DM).
1Global bond indexes represented by Bloomberg Barclays Global Aggregate Index.
Source: IMF, Bloomberg, Barclays and PineBridge Investments as of 30 June 2020. For illustrative purposes only. We are not soliciting or recommending any action based on this material. Any views represent the opinion of the Investment Manager, are valid as of the date indicated, and are subject to change. Indices are unmanaged. An investor cannot invest directly in an index.
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