Highlights

Sustainable Investment in India 2009 (August 2009)
The latest in the IFC Sustainable Investment Country Report series focuses on the Indian market. In this report, TERI-Europe estimates that the total stock of investment in Indian equities where the investment strategy includes a strong focus on environmental, social and governance (ESG) considerations is small and almost entirely composed of investment by foreign institutional investors. They also find that the enabling environment for sustainable investment in Indian listed equities is currently weak. However, there are also some signs of positive change, including improvements in sustainability reporting and growing interest in ESG issues among foreign institutional investors.


Sustainable Investing in Emerging Markets: Unscathed by the Financial Crisis (August 2009)
The report surveys the attitudes of corporate executives and investment professionals. It provides a unique "before and after" snapshot of mainstream investor opinion on sustainability issues in emerging market equity investment, comparing pre-crisis (2007) to mid-crisis (2009). In 2009, 46 percent of asset owners strongly agreed with the statement "ESG issues are an important part of our research, portfolio management and manager selection," up from 36 percent in 2007. The majority of asset owners (78 percent) think the importance of ESG factors has been amplified by the crisis and will result in greater use of ESG criteria over time. The report highlights some of IFC's investment and advisory service clients with good sustainability track record, that have continued to perform well despite the crisis.


Emerging Risk: Impacts of Key Environmental Trends in Emerging Asia (June 2009)
A new series of reports from IFC and World Resources Institute (WRI) shines a spotlight on environmental risks and opportunities that will impact the financial performance of companies in India, Indonesia, Malaysia, Philippines, Thailand, and Vietnam and sounds the alarm that these risk and opportunities are overlooked by investors and companies in the region. Emerging Risk lays the groundwork for analysts to understand environmental issues as financially material, and for companies to see the financial benefits of reducing their environmental impact.

Emerging Risk is the first report in a series establishing the link between issues such as climate change, air pollution, water, and natural resource depletion and traditional financial analysis on corporate value and financial strength for companies in these six key Asian economies. Together with the Undisclosed Risk report [PDF], Emerging Risk sets the stage for a series of sector-specific reports to be published by IFC, WRI and HSBC later this year. The upcoming reports will identify material environmental risks and opportunities in the region’s food and beverage, real estate and power generation sectors.

The series of reports are sponsored by IFC and WRI, in partnership with the Japanese government.

Download the report [PDF] | View the press release | Visit the WRI website


Undisclosed Risk: Corporate Environmental and Social Reporting in Emerging Asia (June 2009)
A new series of reports from IFC and World Resources Institute (WRI) shines a spotlight on environmental risks and opportunities that will impact the financial performance of companies in India, Indonesia, Malaysia, Philippines, Thailand, and Vietnam and sounds the alarm that these risk and opportunities are overlooked by investors and companies in the region. Undisclosed Risk focuses on corporate transparency on environmental risks, and lays the groundwork for understanding environmental disclosure and reporting in emerging markets through an investor lens.

Undisclosed Risk is the second report in a series establishing the link between issues such as climate change, air pollution, water, and natural resource depletion and traditional financial analysis on corporate value and financial strength for companies in these six key Asian economies. Together with the Emerging Risk report [PDF], Undisclosed Risk sets the stage for a series of sector-specific reports to be published by IFC, WRI and HSBC later this year. The upcoming reports will identify material environmental risks and opportunities in the region’s food and beverage, real estate and power generation sectors.

The series of reports are sponsored by IFC and WRI, in partnership with the Japanese government.

Download the report [PDF] | View the press release | Visit the WRI website


Sustainable Investment in Brazil 2009 (April 2009)
Environmental, social and governance (ESG) issues have been an important commercial differentiator in the Brazilian financial and investment community for nearly a decade. The commitment, depth and sophistication of this market — now the world's 10th largest economy — may be unique among the world's emerging economies. As a signal of significant progress, Brazil's pioneering business models have received international attention and have been emulated in other markets.

Today Brazil's sustainable investment market faces fresh obstacles, especially taking into account the country's environmental and social issues and the scale of domestic and foreign investment. Against this background, this report, the first in a series of IFC Sustainable Investment Country Reports, aims to measure the current state and discuss the future of Brazil's sustainable investment market, and stimulate discussion.

Download the report [PDF]: English | Português


Gaining Ground — Sustainable Investment Rising in Emerging Markets (March 2009)
Report reveals first ESG rating for fund managers in emerging markets
While asset managers in developed markets are often credited with being a step ahead in factoring environmental, social, and corporate governance (ESG) issues into investment decisions, this latest research from Mercer and sponsored by IFC reveals that emerging market asset managers are increasingly considering ESG factors in their investment decisions. In fact, it suggests that sustainable investment assets under management in emerging markets have grown to over $300 billion—or nearly 10 percent of total investment in emerging markets in 2008. As part of this effort, IFC and Mercer produced the first rating on ESG practices of fund managers in China, India, South Korea and Brazil and identified best-practice ESG examples to pre-empt potential risks and enhance returns.

"Gaining Ground — Integrating environmental, social and governance (ESG) factors into investment processes" was sponsored by IFC in partnership with the Netherlands, Norway, Luxembourg, Italy and New Zealand and launched 31 March 2009. Download the report [PDF] » | View the press release » | Visit media webinar on key findings from the report » | Podcast (MercerSelect website) »


Panic Button — When Climate Change Gets Real (February 2009)
This new report on climate change launched by CLSA Asia-Pacific Markets, Asia's leading independent brokerage and investment group, incorporates environmental data on listed companies in emerging Asia created by environmental research organization Trucost with a grant from the International Finance Corporation. Download the report [PDF] »


Outcomes of the Who Cares Wins Initiative (January 2009)
On January 28, 2009, IFC released the final report of the Who Cares Wins initiative. The Who Cares Wins 2008 report details the progress that has been made to increase the volume of capital that uses environmental, social and governance (ESG) analysis as a key part of investment decisions. It also provides recommendations to scale up ESG integration for widespread implementation to occur throughout the financial industry. Download the report [pdf] »


Learn How Sustainability Can Strengthen Your Portfolio (October 2008)
Together with Swiss SECO, IFC has developed a series of workshops on Sustainable Investing in Private Equity in Emerging Markets that build on the experience and the success of a similar workshop held in Washington DC, last May 2007. IFC will offer these workshops in four different cities across the world, starting with Cairo in November 2008, followed by Hong Kong, Mumbai and Sao Paulo in the spring of 2009. Read more...


S&P ESG India Index (January 2008)
Launched on January 30, 2008, the S&P ESG India Index is the first index of Indian companies whose strategies and performance demonstrate strong commitment to meeting environmental, social, and governance (ESG) standards. The index comprises 50 companies that meet certain ESG criteria and were selected from the country's 500 largest on the National Stock Exchange. It uses a two-stage screening process based on corporate disclosure and third-party information.

The index is the result of collaboration among IFC and three partners, who won IFC’s Capturing Value grant competition funded by the Dutch government in 2006. It draws on Standard & Poor's expertise in indices, KLD's experience and reputation on researching companies across ESG dimensions using public information, and CRISIL's strong understanding of the Indian business and regulatory context. Learn more about the index from www.standardandpoors.com/indices.


Trucost/IFC Study Finds That Listed Companies In Asia Are More Carbon Intensive Than In Other Regions (December 2007)
Asian listed companies are more carbon intensive than their peers in other regions of the world. Investors in Asian Equity funds are therefore more exposed to carbon risks. There are opportunities to reduce the carbon intensity of Asian equity funds by some 30 per cent without suffering loss in performance.

These are the main conclusions of a report launched on 11 December in Bali – Carbon Counts Asia 2007: Carbon Footprints of Asian Investment Funds. The study, commissioned by the International Finance Corporation and conducted by environmental research organisation Trucost, provides the first comprehensive review of greenhouse gas emissions by Asian companies by analysing the carbon intensity of the MSCI Asia ex-Japan index and 90 individual investment funds in Asia. Read more on the Trucost website...

Readers will need to register to download the report but registration is free of charge.


Who Cares Wins 2007 Report [PDF] (December 2007)
The theme of the fourth annual Who Cares Wins conference was New Frontiers in Emerging Markets Investments. During discussions, it was pointed out that financial and risk impacts from environmental, social and governance issues are particularly relevant when it comes to emerging market investments. In a speech given at the conference, IFC's Environment and Social Development department director, Rachel Kyte, emphasized this point, saying that "IFC firmly believes that environmental and social issues are inextricably linked in emerging markets, and that an economic expression of those issues in terms of both risk and opportunities is inevitable." Download the publication...


Euromoney and IFC co-hosted an investor roundtable on "Can ethics improve your investment performance?" [PDF] (2007)
Environmental, social and governance issues are increasingly prominent with regard to investment management in emerging markets. However, does taking a principled approach to portfolio construction offer the opportunity for greater returns, or leave investors with one hand tied behind their backs? Download the article... [PDF]


Who Cares Wins 2006 Report [PDF] (November 2006)
The Who Cares Wins conference, which gathers every year different actors from the investment chain, examined in 2006 the communication of environmental, social and governance (ESG) issues between companies and investors. A major challenge remains the fact that ESG issues are not easily quantifiable and therefore tend to be put aside by mainstream financial analysts who do not know how to enter them in their valuation models. Download the publication...


The Promise of Private Equity [PDF] (November 2006)
There is growing evidence that businesses can meet the demands of the commercial marketplace and still be environmentally and socially responsible. They can also become better prospects for investors as a result. This is demonstrated in IFC's new study "The Promise of Private Equity" through five case studies drawn from the portfolio of private equity funds in which IFC is an investor. The study shows how environmental and social sustainability was integrated successfully into core competencies and sound business management, thereby contributing directly to increased profits and better business performance. Download the publication...


IFC Awards Grant to CRISIL, Standard & Poor's, KLD, Trucost, and CLSA to Study Environmental and Social Data for Emerging Market Equity Investors - September 27, 2006
IFC awarded a $500,000 grant to CRISIL, Standard & Poor's, and KLD; and to Trucost and CLSA, the winners of its research competition "Capturing Value." Read more...


New Reports Offer Investors Guidance for Assessing Environmental, Social and Governance Factors in Asian Business
"Investors need a framework for assessing the growing and complex environmental, social, and governance issues that face companies in Asia today. This report begins the process of creating such a framework," said IFC's Director of Environmental and Social Development, Rachel Kyte. Read more...


Brazil's stock exchange promotes sustainability
To encourage companies to adopt sustainable practices and provide investors with a tool to monitor those companies, IFC has supported the creation of a Corporate Sustainability Index at the Sao Paolo Stock Exchange (Bovespa) the first of its kind in Latin America. Read more...


China: Reputex Corporate Social Responsibility Benchmark Released after IFC-Supported Consultation
Rating agency RepuTex today announced a new benchmark for socially responsible corporation in China, following a consultation process that was financed through IFC. Read more...