ESG Data for Emerging Market Investors: Where’s the Value? Insight from Data Providers and Investment Managers

In recent years, environmental, social, and governance (ESG) investing has grown in popularity in virtually all asset classes. Despite the robust performance of many ESG indexes since the global financial crisis, investors still express skepticism about alpha potential or ascribe the observed benefits to more traditional factors. This is especially true among emerging market (EM) investors where ESG is poorly understood.

This event aimed to educate emerging market investors as to the current ESG product landscape, key ESG risks, and the contribution of ESG factors to investment performance. It aimed to help investors locate the value in ESG in various markets and industries, including in countries where institutional framework is weak, and the points where ESG goals and investment goals may differ. The discussion addressed practical questions such as how investors may already implicitly incorporate ESG into their calculations, and how they can modify ESG data to better suit their investment process.

Participants: 

Ric Marshall, MSCI ESG Research
Ashley Schulten, BlackRock
Diederik Timmer, Sustainalytics
Jack Deino, Blackrock
Jamieson Odell, Caravel Asset Management
Claire Veuthey, Wells Fargo
Cary Krosinsky, Brown University

Co chairs: 

Nicolas de Alejo, BlackRock
Ric Marshall, MSCI ESG Research

Host Commitee Members: 

Sarah Cohn, Sustainalytics
Valeria Cisnero, American Century Investments
Nicolas de Alejo, BlackRock
Eric Fine, Van Eck
Deborah Lieberman, Torino Capital LLC
Ashok Parameswaran, Emerging Markets Investors Alliance
Marie Riley, MSCI Inc.