ESG rating for emerging markets
GLOBAL - Pension schemes could soon rate emerging market fund managers on their attitude to environmental, social and governance (ESG) issues through work by Mercer and the International Finance Group (IFC).
As a branch of the World Bank, the IFC asked the consultants to study 50 managers based in China, India, South Korea and Brazil and 200 others investing in emerging markets.
Tim Gardener, global business leader of Mercer's investment consulting business, said: "As demand for investment in emerging markets has grown, so too has the need for a better understanding of the environmental, social and governance forces at play in these markets and their impact on performance."
Mercer believed these initial interviews would shed light on emerging markets' approach to ESG issues and gauge how sustainable growth in these countries would be.
Helga Birgden, leader, responsible investment, Mercer Asia Pacific, added the work would uncover the capacity for sustainable investment in these regions.
Birgden continued: "We believe there are probably many managers and companies already engaging in sustainable practices, but not promoting themselves as such.
"A key aim of the study is to ensure these practices and managers are duly recognized."
Berit Lindholdt Lauridsen, IFC, said the research aimed to highlight demand for sustainable investing products.
Mercer has committed a team of 20 to the project. The findings should be available in late 2008.
Tim Gardener, global business leader of Mercer's investment consulting business, said: "As demand for investment in emerging markets has grown, so too has the need for a better understanding of the environmental, social and governance forces at play in these markets and their impact on performance."
Mercer believed these initial interviews would shed light on emerging markets' approach to ESG issues and gauge how sustainable growth in these countries would be.
Helga Birgden, leader, responsible investment, Mercer Asia Pacific, added the work would uncover the capacity for sustainable investment in these regions.
Birgden continued: "We believe there are probably many managers and companies already engaging in sustainable practices, but not promoting themselves as such.
"A key aim of the study is to ensure these practices and managers are duly recognized."
Berit Lindholdt Lauridsen, IFC, said the research aimed to highlight demand for sustainable investing products.
Mercer has committed a team of 20 to the project. The findings should be available in late 2008.
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