The emerging markets asset class is extremely varied. It includes democracies and dictatorships, economies reliant on manufacturing and those that export commodities, and – most importantly – some of the very best companies in the world alongside some of the very worst.
Emerging vs Developed Markets: ESG Difficulties?
In addition, there seems to be a consensus that sustainability investing in emerging markets is significantly more difficult as compared to developed markets. Is that true?
Problems often cited include:
- There is no disclosure in emerging markets
- Developed markets companies are well ahead of emerging markets peers when thinking about sustainability
- Engagement is difficult to implement in emerging markets
Challenging Conventional Wisdom
In partnership with Stewart Investors, this webinar will attempt to provide a counterpoint to the prevailing consensus. Notwithstanding the difficulties, we will consider
- What ESG scores are missing out on in emerging markets
- Why some emerging market companies are at the coalface of ‘design for sustainability’
- Why engagement is an earned right
Focus on the Long Term
If the last ten years of investing in emerging markets has taught us anything, it is that in the long run, quality wins. Companies with high-quality fundamentals, if held patiently, can deliver both superior long-term compounding of capital, but also do so in a way that limits the risk of permanent capital impairment.
However, that requires courage and patience to make decisions with a truly long-term mind-set.
Jack Nelson is a Portfolio Manager at Stewart Investors.
He joined the team at Stewart Investors in September 2011 as a graduate and is now the lead manager of the Global Emerging Markets Sustainability strategies.
Jack holds a MA (Oxon) in Politics, Philosophy and Economics from Queen’s College, Oxford in the United Kingdom.Enquire about this event