BlackRock Calls ESG Investing ‘Must Have’ in Emerging Markets

BlackRock Inc. says sustainable investing is here to stay.

Allocating funds with the help of ESG criteria will become more important to emerging-market credit analysis as global regulatory pressure mounts, according to the firm’s research arm, the BlackRock Investment Institute. That means investors should pay closer attention.

“We see ESG investing evolving from a ‘nice to have’ to a ‘must have’ story,” the New York-based company’s Michel Aubenas, Jessica Huang and others wrote in a note. “ESG indexes are likely to become strategic benchmarks for many investors over time.”

Some investors disagree. At NN Investment Partners, a $313 billion ...