Emerging Market ESG Risks May Be Misunderstood, Report Shows

The link between a hotter planet, loss of economic wealth and investment returns isn’t always well understood in ESG strategies, particularly those targeting developing markets, according to a report by the head of strategic research at Nordea Bank Abp.

Steen Winther Blindum says his analysis points to a “decoupling between emerging and developed markets,” whereby many emerging markets are likely to be “more severely affected by climate change.”

And the countries that are “most exposed to climate change are the ones where the potential for mispricing will be the highest,” he said in an interview.

The asset management industry ...