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Closing the Funding Gap: The Case for ESG Incorporation in Emerging Markets

Closing the Funding Gap: The Case for ESG Incorporation in Emerging Markets

Year Published

2022

Contributing Organisations

Principles for Responsible Investment (PRI)

Type of Resource

Research/Insights Report

Languages

English
Spanish

Relevant Topics

Core Topic
Climate Finance Ecosystem
Topic 2
Risks & Opportunities: The Business Case

Target Audience

Asset Managers
Asset Owners
MDBs/DFIs

Relevant Geography

Africa
Middle East and North Africa
Asia & the Pacific
Central Asia
Latin America and the Caribbean
Closing the Funding Gap: The Case for ESG Incorporation in Emerging Markets

Resource Summary

This paper outlines the case for ESG incorporation in emerging markets, given the OECD estimation of an annual funding shortfall of US$3.7 trillion required to meet the SDGs by 2030. It discusses the potential of emerging markets to offer meaningful returns to investors, driven by their rapid economic growth and development needs. It identifies key challenges in this landscape and provides suggested actions for enhancing an enabling environment, optimising asset allocation, expanding the pool of investable opportunities, and promoting active ownership. The report serves as a resource for investors aiming to integrate sustainability outcomes in their investment strategies to align return objectives with long-term sustainable development.

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