Companies in emerging markets trail their developed world peers on sustainability, but some do present opportunities for responsible investment, according to a report by Ethical Investment Research Services (EIRIS).
Broadening the horizons for responsible investment surveyed the public disclosures of 50 major emerging market companies, and found that most are making some efforts to address environmental, social and governance issues.
But, while the report finds that possibilities exist for "diversification and risk management for investors as well as wider potential gains for sustainability", it also shows that emerging markets are yet to fully embrace corporate social responsibility (CSR).
Only 15 of the 50 companies included in the report achieved a rating of more than five out of 10 on environmental issues.
And the average score for a chemicals company in emerging markets is 1.6 out of 10, compared with 7.7 in developed markets. But in other sectors the difference is less pronounced. Emerging markets banks scored an average of 5.2, while banks in developed markets scored 6.5.
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