Global sustainable investment specialists EIRIS today published Broadening horizons for responsible investment: an analysis of 50 emerging market companies which reveals significant potential opportunities for responsible investment in some emerging markets.

Contrary to popular misconception a clear majority of companies included in the study show some evidence of addressing environmental, social and governance (ESG) issues with certain companies giving significant consideration to ESG issues.

South Africa is ahead of other emerging markets in disclosing corporate social responsibility (CSR) activities whereas some countries such as China are only beginning to engage with these areas

• some countries show positive signs in reporting in some areas but lag behind in others - Taiwanese companies showed poor governance performance but did display some evidence of addressing environmental issues
  
• overall, emerging markets reporting on ESG issues is not as advanced as that of their developed market peers – but this mismatch in performance is less apparent in certain sectors
  
• amongst the oil & gas producers and telecommunications companies, there are some emerging market companies that compare favourably with large developed market companies

* the banking sector shows significantly less distinction between the developed and emerging market companies

EIRIS’ research also investigates the suitability of different socially responsible investment styles in selecting emerging market companies for investment.

“Until recently, a lack of disclosure on CSR issues has deterred some investors from investing in emerging markets. Sustainability considerations have often been assumed to be subordinate to the quest for economic growth,” said David Tozer, report author and Head of Governance Research at EIRIS. “Emerging markets companies continue to show good progress in addressing environmental, social and governance issues which means many of these concerns are largely misplaced”.

Peter Webster, EIRIS’ Executive Director said: “More investors are focusing on emerging markets as they seeking to diversify their equity investments. Our research enables SRI investors to look at the investment opportunities which exist beyond developed markets when constructing their responsible investment strategies. Many more emerging market companies are now taking sustainability issues seriously and we are delighted to provide investors with the ESG information they need identify companies suitable to their responsible investment approach.”

Click here for a copy of the report, or contact Stephen Hine on 020 7840 5716, email stephen.hine@eiris.org

Press contacts:

Stephen Hine, 020 7840 5716 stephen.hine@eiris.org        

Mark Robertson, 020 7840 5741 mark.robertson@eiris.org