June 18, 2024

New tool to channel $5.4 trillion in ESG investment in emerging markets

1 min read

ESG (environmental, social and governance) investing has grown exponentially in recent years, reaching US$38 trillion globally, but emerging markets still attract less than 10% of ESG funds despite their 58% contribution to global gross domestic product.

FII Institute interviewed top investors who cited ESG rating agencies as a major barrier due to irrelevant key performance indicators. In response, FII Institute teamed up with EY to launch the Inclusive ESG Framework in 2022 and collaborated with ESG Book to create the Inclusive ESG Score and Tool launched at FII7 – unlocking new opportunities for investors interested in emerging markets.

For investors

The Inclusive ESG Score identifies ESG–focused companies, guiding the Inclusive ESG Ranking of the Top 250 sustainable emerging market companies for investment consideration.

For emerging market companies

The Inclusive ESG Tool tailors metrics to address emerging market challenges, allowing companies to disclose their data and receive an Inclusive ESG Momentum Score, which indicates current performance and future ESG commitment, supporting positive change.

The new tool has the potential to help reduce the US$5.4-trillion ESG investment gap in emerging markets, and FII Institute is proud to catalyse this initiative and bring investors and emerging market companies together for a positive and inclusive “Impact on Humanity”.

Both investors and emerging market companies can learn more here.

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