Lower governance standards, increased risk of corruption, looser reporting standards –can applying Environmental, Social, and Governance factors benefit investors in Emerging Markets Equities?
Based on a decade of actual historical data for our particular ESG framework, we can analyse the risk/return profile of the Candriam ESG Emerging Markets universe. Value or values? Our history means we can calculate the historical performance value of applying sustainability values to these complex markets. We can also examine whether there has been any benefit to removing companies from the universe for increased ESG risks. And we can examine style biases over time.
A central question for most investors is, “Do ESG factors add to, detract from, or have no effect on financial returns for EM equities?”
Few processes have been in place long enough to provide contemporaneous data. Discover our results from more than ten years of applying ESG factors to an emerging markets equities universe.