The terms ‘ESG’, ‘Responsible’ and ‘Sustainable’ have become commonplace in the investment industry. However, their definitions often remain unclear and subjective, leading to misconceptions of how they enhance fundamental investment. For Ashmore Global Equity, Sustainable/ESG Investing promotes high quality and long-term orientated companies with low ESG risk exposures that understand and address such exposures to the benefit of all stakeholders.

This paper frames the strong interconnectivity between financial returns and environmental and social values, the importance of which is pronounced in Emerging Markets. It concludes that Sustainable/ESG Investing can steer investors towards the most attractive investments as well as support global socio-economic sustainability.