On this All Hallows' Eve edition of Schroders’ Sustainability Quarterly webinar, we look at ESG-indexing, and ESG within Emerging Markets, both areas that can potentially offer tricks & treats.
The combination of rising demand for index-based investment products and an increasing appetite for strategies based on ESG criteria has led to a sharp increase in ESG-branded products. We highlight a number of reasons why these simple, low-cost solutions may not provide either the financial or sustainability outcomes investors are likely to expect.
EM have tended to exhibit greater volatility than developed markets. Less stringent regulation, rapidly changing demographics and evolving policy environments can add to the uncertainty for EM investors. These issues are less likely to impact better managed, more sustainably run companies, in our view.