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.