Emerging Markets – A New Paradigm for ESG Investing

Emerging markets and ESG (Environmental, Social, and Governance) investing have been two of the fastest growing investment specialty areas over the past decade but for very different reasons. Emerging market growth rates were driven by a rising middle class, need for more advanced infrastructure and regulation, and an increased international flow of goods and capital. ESG investing, on the other hand, has benefited from the idea that long-term alpha opportunities are driven by an assessment of the sustainability and true risk of companies judged by ESG principles.