NordSIP Insights – Investing Sustainably in Emerging Markets

    Investing in emerging markets can easily be summed up in two words: potential and risk. Yes, the prospects can be dazzling in those fast-growing places, densely populated with entrepreneurs and consumers, rich in resources and opportunities. Yet, there are plenty of challenges, too, not least for investors with sustainability high on the agenda. Those who enter the space are in danger of losing not only their money but also their reputation if things go wrong.

    In this edition of NordSIP Insights, we explore both the potential and the multifaceted risks that investors encounter upon venturing into emerging and frontier markets, ESG lens in hand. With the help of experts and veterans in the field, we try to untangle a dense and intertwined jungle of related topics: from public and private equities, sovereign and corporate debt, to microfinance and impact investing.

    The experienced investors contributing to this publication take us on an adventurous trip to some remote corners of the world, from Nicaragua to Saudi Arabia, from Burkina Faso to Ukraine and from Pakistan to Haiti. They share fascinating case studies and examples of investments that change peoples’ lives. They describe eloquently the many reasons for financing sustainable solutions where they are needed the most. Many of them argue that we should all be embracing the motto “Leave no man behind,” if only out of a sense for self-preservation in an increasingly global world.

    We also look at how the wave of greenwashing, another global phenomenon, manifests itself in emerging markets. Unfortunately, the lack of homogeneity in green regulation and the abundant corruption in many of these markets seem to provide perfect conditions for this type of financial weeds.

    COVID19 is inevitably on the mind of investors and pops up in most of the interviews. Whether surprised by the developing countries’ enviable resilience in the face of the pandemics or lamenting its devastating effects on the world’s poorest nations, the investors we talk to seem to agree on one point: the opportunity to transform the world into a more sustainable version of itself.

    Tired of flipping the book? Access individual articles or download the pdf here!

    1. the editor’s word
    2. Filling the ESG Data Gaps, an interview with Edith Siermann and Marcin Adamczyk, NN Investment Partners
    3. Powerful Potential – Financing renewable energy in emerging markets, by Angeles Toledo Rodriguez  and Greig Blackie, Triodos Investment Management
    4. An Unbiased Approach, by Barney Goodchild and Aaron Grehan, Aviva Investors
    5. Impact & Microfinance – A 20 year journey, an interview with Philipp Müller,  BlueOrchard
    6. Saudi Arabia & Shipbreaking, an interview with Kiran Aziz, KLP
    7. Oslo Pensionsforsikring’s Dynamic Approach, an interview with Magnus Riiber, OPF
    8. Emerging Market Healthcare – Investments in the Time of COVID-19, an interview with Patricia Ribeiro, American Century Invesments
    9. Who’s (Not) Afraid of Emerging Markets – The Nordic Asset Manager’s Perspective, by Julia Axelsson
    10. Greenwashing in Emerging Markets, by Filipe Albuquerque


    Tired of flipping the book? Access individual articles or download the pdf here!