Applying ESG to EM sovereign bond investing

Aberdeen Standard Investments’ Emerging Market Debt team discuss the importance of integrating environmental, social, governance and political (ESGP) factors into emerging market analysis.

Insurance Investor promotional contentposted on Wednesday, December 09, 2020

This article was produced by Aberdeen Standard Investments as part of their valued Industry Partnership to Insurance Investor. To read their full study, “Our ESG approach to emerging market sovereign bond investing ”, please click here.

A country’s creditworthiness is fundamentally dependent on its competitiveness and ability to sustain economic growth over the long term. To assess this, investors traditionally look at a range of macroeconomic variables, including public debt, inflation, fiscal deficits and current account balances. Along with political and governance factors, these are determinants of economic development and elements of the country’s willingness and ability to repay its debt. Are ESGP considerations even more relevant than traditional macroeconomic variables when looking at Emerging Market Debt?

To find out more about the importance of ESGP considerations for Emerging Market Debt, please click here to read the full white paper.

 

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