Sustainalytics has published a new report on ESG in emerging markets equities.
“Emerging Market Equities: Key Sources of ESG Risk”, analyzes risks associated with the FTSE Emerging and Developed indices and includes a list of ESG stocks for investors to consider. It also looks at the relationship between GDP growth and ESG risk in 42 markets (25 developed markets and 17 emerging markets).
The report finds that investors in the FTSE Emerging Index are exposed to over 14 percent more ESG risk than those in the FTSE Developed Index. The gap between the two indices reflects differences in regulation, corporate governance practices and lax disclosure requirements in emerging markets.