ESG_Risk_Around_the_World_LP_V2

ESG Risk
Around the World

A Comparative Analysis Between
Developed and Emerging Markets

Environmental, social and governance (ESG) investing and corporate best practices have gained global momentum over the last decade. Despite competing priorities, the focus on ESG issues among investors and companies worldwide presents an opportunity to track international trends and better manage ESG-related risks over time. 

This report tracks and examines the ESG attributes of companies in emerging and developed markets from 2018 to 2022. It sheds light on recent developments across markets, sectors, market caps, and company types, showing how companies in developed and emerging countries are improving their ESG Risk Ratings at different paces. 

Readers of this report will learn how: 

  • In developed markets, assets under management (AUM) in sustainable funds increased more than six-fold, from US$321 billion in 2018 to US$2.15 trillion in 2022. 
  • In emerging markets, AUM has grown almost seven-fold, from US$23 billion in 2018 to US$164 billion in 2022. 
  • The average ESG Risk Rating scores of companies in developed markets have improved by 12%, while in emerging markets they improved by 6%. 
  • Though companies in developed markets are improving their ESG Risk Ratings faster, the pace of improvement in emerging markets trails relatively closely. 
  • Including emerging-market universes in responsible investing portfolios allows for more diversified investment strategies. 

Download the Report