Sustainable Investing in Emerging Markets 2016 EMPEA
Bridging Smart Capital with ESG to Maximize Returns
Sustainable investment practices are transforming private capital investments, demonstrating that returns and a positive impact can - and should - go hand in hand. Benchmarking environmental, social and governance (ESG) best practices can influence investment performance and improve alignment of values. Exits through IPOs and secondary buyers also require demonstrating adherence to ESG standards.
Sustainable investing strategies that address both financial and systemic factors can mitigate the risks that impact an investment’s long-term potential, create resilient value and increase capital efficiencies. Particularly pertinent in emerging markets, which are ripe with opportunity but prone to unpredictability, ESG safeguards investors from uncertainties – i.e., rapidly changing demographics and evolving policy environments - protecting investments even when regulations or market stability are absent.
Sustainable investing has reached a level of maturity where it is clear that, especially in the emerging markets, the debate is no longer about why investing sustainably is critical for business. Instead, the focus is on how to successfully integrate these strategies into investments in order to maximise value and impact – not only for the holding period but for the lifespan of the business. In a 2015 United Nations Principles of Responsible Investment survey, nearly 75% of LP respondents said they were making ESG factors part of manager selection and nearly 85% of GP respondents said that taking ESG into account had helped pinpoint risks and opportunities for value creation.
Register today for FT and EMPEA’s Sustainable Investing in Emerging Markets, and join leading investors across these growth regions to discuss gaining the competitive edge through the implementation of sustainable investment practices at the fund level and within the portfolio company, and why LPs increasingly expect private equity firms to consider ESG factors into their investment strategies.
For more information visit: https://live.ft.com/Events/2016/Sustainable-Investing-in-Emerging-Markets