Alliance Notes: CTI: Financials, World Bank Sovereign ESG Data Portal Recap, Volunteer Opportunities

Monday, March 29, 2021

Alliance Events, 03/29/21

 
 
Contents
 
Upcoming Events
1. Carbon Transition Initiative: Financials (April 8)
 
Recaps of Recent Events
2. DFG Hosted World Bank Sovereign ESG Team (17 March)
 
Volunteer Opportunities
3. Relationship Manager
4. Program Director for Infrastructure

 

Upcoming Events

 

1. Carbon Transition Initiative: Financials (April 8)

Please join us on Thursday, April 8 at 9 am EST, for our second webinar in our Carbon Transition Initiative, a series of webinars on how climate change and the carbon transition affect emerging markets sovereigns and corporates. The topic of this webinar will be financials and address key transition and physical climate risks facing emerging markets banks and how carbon accounting standards like the Partnership for Carbon Accounting Financials (PCAF) can enable banks assess and manage climate risk.

Lauren Compere, Managing Director, Boston Common Asset Management will moderate a discussion with Angelica Afanador, Program Director, PCAF, Ted Kin Chen, Assistant Vice President, WWF Singapore and Ana Maria Zapata Valez, Sustainability Specialist, Bancolombia.

You can register for the webinar here.

 

Recaps of Recent Events

 

2. DFG Hosted World Bank Sovereign ESG Team (17 March)

On March 17, the Debt & Fiscal Governance Program hosted a webinar for three analysts at the World Bank: Bryan Gurhy, Tim Herzog, and Dieter Wang. The team discussed the Bank’s recent research on sovereign ESG data, and introduced its Sovereign ESG Data Portal.

In the absence of a standardized global presentation of sovereign-level ESG data, the Data Portal is a free online platform that provides users with a range of indicators. The Portal is designed to help investors align their ESG analysis with sustainable development policy indicators and analysis, and to increase data transparency in emerging markets and developing countries.

During the webinar, Bryan Gurhy highlighted the low correlation of the environmental data that the seven largest third-party ESG data providers report. This points to a lack of consensus on which data to use to capture environmental risk. Bryan noted that a forthcoming research piece, Sovereign ESG 2.0, will provide guidance to market participants in three areas: a) approaches to articulating a consistent investment objective, b) the merits of adopting a transparent framework, which provides disclosure on methodology and data sources, and c) mechanisms to correct for ingrained income bias when assessing sovereigns.

Addressing the market's concerns about the poor quality of ESG data, Tim Herzog explained that the Data Portal is in fact a composite framework for ESG data; it is also a synthesis of several concepts that are already being used in the market. There is probably scope for improving the data on countries’ carbon emissions, and on basic economic indicators. However, at this stage, the Data Portal is not introducing any new concepts. Other indicators, such as agricultural land use or maternal mortality, are tricky to capture and therefore are likely to continue to be reported with lags, if at all.

One innovation that the World Bank team is studying is to introduce the concept of natural capital. The idea of natural capital falls into the debate on the importance of measuring factors “beyond GDP.” Dieter Wang explained that natural capital could be captured in wealth accounting; in other words, by measuring the natural assets of a country, but discounting the lifetime earnings of the assets. This approach provides the most potential to capture economic value by translating environmental variables into economic data that is useful for decision-makers.

In the next phase of development of the Data Portal, there is the potential to use satellite data and other new technologies and statistical methods to improve the frequency, quality, and comparability of the data. In mid-April, we will host the World Bank team again to discuss their research on Sovereign ESG 2.0. - Ruchi Malhotra & Fergus McCormick

 

Volunteer Opportunities

 

3. Relationship Manager

The Alliance seeks a volunteer Relationship Manager to engage asset managers in the Alliance’s programs to advance ESG outcomes in emerging markets. The ideal candidate will have a passion for ESG or international development, exceptional interpersonal skills, and a strong buy-side network. Those with experience in emerging market debt or equity sales will be viewed favorably. Candidates may be based anywhere and may work virtually.

Please send an email including your resume and/or Linkedin profile mentioning “Volunteer Relationship Manager” in the subject to applicants@eminvestorsalliance.org.

 

4. Program Director for Infrastructure

The Emerging Markets Investors Alliance seeks a part-time volunteer to incubate a program focused on advancing ESG best practices among publicly-listed, emerging market infrastructure related companies and projects. The successful candidate will have at least 5 years' experience analyzing emerging market utilities, project finance, etc.

For more information, please send an email with “Program Director for Infrastructure” in the subject line to applicants@eminvestorsalliance.org. Please include your resume or LinkedIn profile.sed in a recent report, many EMs are both highly exposed to physical climate risks and, in many cases, less prepared for these effects.
 

 

 

The Emerging Markets Investors Alliance is a 501(c)(3) non-profit organization
that enables institutional emerging market investors to support good governance, promote sustainable development, and improve investment performance in the
governments and companies in which they invest.

www.eminvestorsalliance.org