MSCI’s latest research, “ESG investing in emerging markets” was published Feb 11 on MSCI.com. To read more blogs from MSCI, visit our Research & insights page.
- Recent studies by MSCI ESG Research LLC have shown historical positive links between ESG considerations and corporate financial performance.
- Because investors might still question whether ESG historically added value in emerging markets, where companies’ consideration of ESG risks is a more recent phenomenon we compared the performance of four ESG indexes to their MSCI emerging-market parent.
- We found historical outperformance for the four broad-based integration ESG indexes and that a significant component of this outperformance can be explained by the index being overweight or underweight certain stocks based on ESG criteria.
- We also found that higher-rated emergi…