Many emerging market economies are leading the way on sustainable investing and it is wrong to lump together all institutions in the region as having poor ESG credentials, according to Arisaig Partners managing partner Rebecca Lewis.
In Portfolio Adviser’s latest video interview, Lewis explains how it is essential that ESG continues to develop in emerging markets, given the region comprises some six billion people, roughly two thirds of the world’s population.
She says institutions in emerging market institutions can be weaker from an ESG perspective, which is a challenge but also an opportunity.
“Many of these companies are leading the way in issues, for example India has led the way in terms of top-down regulation to address single-use plastics,” she says.
Elsewhere, Lewis addresses how Covid-19 has altered investors’ perception of ESG and how she hopes the pandemic has accelerated a trend towards responsible investing that was already well underway.
She also talks about Arisaig’s research-led approach which is about engagement first and foremost, and how the firm is prepared to divest from companies when deemed necessary.
“We love a strongly-worded letter,” she says.
For more, watch the video above.
