In an article published on May 14, 2018 the Financial Times posits that “screening can help stem risk in emerging markets.” The byline reads further: “Environmental, social and governance filters can lessen the dangers in volatile areas.”
According to the article, “(i)n 2004, the Johannesburg Stock Exchange was the first emerging market to introduce a sustainability index. This was followed by the Brazilian exchange in 2005, which later cited pressure from European investors as a factor in its positive take-up levels.
These exchanges help set the tone for corporate governance and reporting — which is improving. Of the 38 stock exchanges that produce guidance to listed companies on ESG reporting — which covers factors such as how companies are moving towards a sustainable business strategy — 22 are in emerging markets.”
Registered users may read the article on the Financial Times internet site.