FII Institute and ESG Book unveil inclusive ESG tool for emerging markets


FII Institute and ESG Book have announced the introduction of new tools aimed at transforming ESG data quality in emerging markets.

According to ESG Today, these pioneering solutions were born from a pressing need to address the multi-trillion dollar ESG investment gap. Shockingly, emerging markets, which account for more than half of the world’s GDP, currently receive a mere 10% of ESG capital flows. Both organisations identified that the existing ESG ratings system, which often uses KPIs not pertinent to emerging markets, has been a significant impediment to investment flows.

The FII Institute, a non-profit foundation, dedicates its efforts towards shaping the future of global investment initiatives. On the other hand, ESG Book stands as a prominent player in the realm of sustainability, providing essential data and technological solutions that elevate ESG initiatives and foster sustainable investment.

Their latest offering, the Inclusive ESG Tool and Inclusive ESG Score, provides a nuanced approach to ESG evaluations. The toolkit’s standout feature is the Inclusive Momentum Score, which forecasts future ESG performance by amalgamating current and evolving shifts in corporate sustainability. Complementing this, the toolkit also boasts a current ESG Performance Score and a Disclosure Score, together painting a holistic picture of a company’s commitment to sustainable practices.

Adding to their suite of solutions, the organisations have also unveiled the Top 250 Inclusive ESG Ranking. This ranking is predicated on the new score and is instrumental in spotlighting the crème de la crème of sustainable companies in emerging markets.

The emergence of such tools and rankings heralds a fresh perspective on ESG data in emerging markets, ensuring that investments are steered towards regions where they can effect the most change and yield the greatest returns.

FII Institute CEO Richard Attias said, “Our global financial markets are more interconnected and driven by change than ever before. Investing in ESG (Environmental, Social, and Governance) initiatives plays a pivotal role in the solution. These funds should be strategically directed toward emerging markets where their impact is most needed, all while ensuring the returns necessary for the vitality of these markets.”

ESG Book CEO Dr Daniel Klier said, “We are delighted to be collaborating with FII Institute to usher in a new approach to ESG data in emerging markets. The Inclusive ESG Score is a next generation tool for investors that identifies the sustainability leaders of today and tomorrow, with a transparent, data-driven approach that is tailored to emerging markets. Through this partnership, we look forward to providing a solution that enhances investment decision-making, and in turn helps to drive greater ESG investment flows to emerging market companies.”

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