Mercer and IFC to deliver first ‘sustainability rating’ for emerging market investments in South Korea

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Mercer

2008-04-30 16:37

Seoul--(뉴스와이어)--For the first time fund managers in emerging markets will be rated based on their capacity to incorporate environmental, social and governance factors (ESG) into their investment decisions as part of a major new research initiative commissioned by the International Finance Corporation (IFC), the private sector branch of the World Bank Group.

To determine the ratings, Mercer, who has been appointed by the IFC to conduct the study, has commenced interviews with 10 Korean equity managers, plus 10 sustainable investment branded managers, which will make a total of 50 managers interviewed across Brazil, China, India and South Korea. The research will also include a survey of over 200 managers globally, who invest in emerging markets.

Tim Gardener, global business leader of Mercer’s investment consulting business said the cutting-edge research would bring a greater depth of understanding of how sustainable growth in these four countries will be.

“As demand for investment in emerging markets has grown, so too has the need for a better understanding of the environmental, social and governance forces at play in these markets and their impact on performance,” he said.

The results of the interviews with managers on the ground in China, India, South Korea and Brazil will provide investors with an insight into how emerging markets are operating and the initiatives they demonstrate in regards to ESG.

Berit Lindholdt Lauridsen of IFC said, "Through this research, IFC wants to raise asset owners’ and fund managers' awareness and understanding of sustainable investing, and aims to highlight current investors' demand for sustainable investing products.

“A joint IFC and the Economist Intelligence Unit survey shows about 80 per cent of asset owners who currently do not integrate environmental, social and governance policies in their emerging market investments expect to do so over the next three years. The survey also indicates that it is difficult to find fund managers with the required capacity,” said Berit.

Helga Birgden, Mercer’s responsible investment leader, Asia Pacific, said the in-depth nature of this research will really bring colour to the picture of what is happening in these markets and uncover the capacity for sustainable investment.

“We believe there are probably many managers and companies already engaging in sustainable practices, a key aim of the study is to ensure these practices and managers are duly recognized,” said Birgden.

“Korean equity managers are well aware of the value of governance. Some Korean investment managers are including stocks in their equity portfolios associated with solar energy and greenhouse gas reduction and recognise that sustainable investing is part of a global trend. Korean managers are increasingly assessing the opportunity set associated with stocks that have a longer term outlook and that incorporate sustainable investing themes,” she said.

The sustainable investing program of IFC has been working, for the past four years, on increasing the sustainability of investments in emerging markets. Through that program, IFC delivers technical and financial support to projects that help investors capture, using sustainability approach, the potential for superior long-term returns in emerging markets.

Mercer has assembled a team of over 20 investment consultants and researchers, and will leverage its Global Investment Manager Database (Mercer GIMD™) in each of the emerging markets to conduct the research. The findings will be made publicly available late 2008.

웹사이트: http://www.mercer.co.kr