Thanks Natasha - very helpful. Its a complex area to get to understand. Is there a doc or website which explains how these initiatives are related to each other and (hopefully) how they complement each other? Mike
Natasha Buckley said:
For investors to determine whether companies have strong, long-term investment potential, these companies must disclose information about their ESG practices. This information is needed by financial markets to value the impact of ESG on financial performance. In emerging markets, the most challenging issue for our signatories is the lack of comparable ESG data to enable them to assess companies when making investment decisions. That is why the PRI co-convened the Emerging Markets Disclosure Project which aimed to increase sustainability reporting among emerging markets companies through research and engagement activities.
One of the main conclusions of the project was that local stock exchange listing and regulatory requirements are the most important drivers of sustainable reporting. This ties into the work that the PRI is doing with the Sustainable Stock Exchanges initiative (the PRI co-convened this initiative with our UN partners, the UN Global Compact and the UNEP Finance Initiative, and also UNCTAD). This is a peer-to-peer learning platform for exploring how stock exchanges, in collaboration with investors, regulators and companies, can enhance corporate transparency – and ultimately performance – on ESG issues and encourage sustainable investment. 23 leading exchanges have joined this initiative and made voluntary public commitments to advancing sustainability.
So Mike - to answer your question, you can support UNEP FI, PRI and the SSE knowing that we are all working closely together!
Zahid Torres-Rahman said:
Ok - let's move on to question 2:
Question 2: Where are we seeing the most progress in managing environmental, social and governance issues in developing countries, and where do the greatest barriers remain?