May 4, 2010
50 investors with more than $1 trillion in assets under management have signed onto the Emerging Markets Disclosure Project (EMDP) investor statement on corporate environmental, social and governance (ESG) disclosure in emerging markets. An additional 21 research, professional and civil society organisations have signed onto the statement in 2010, among them GES Investment Services.
The EMDP is an international initiative working to improve ESG disclosure in emerging markets. The EMDP Steering Committee includes Boston Common Asset Management, Calvert Asset Management Company and the Social Investment Forum (SIF) and SIF’s International Working Group, with technical advisory support from the United Nations Principles for Responsible Investment (UNPRI). SIF is also the secretariat for the EMDP.
Signatories to the statement affirm their belief that the next generation of leading companies will distinguish themselves through their commitment to sustainability through robust ESG reporting and will be correspondingly rewarded by the market. The increased support for the EMDP’s investor statement and mission comes as the EMDP enters its third and most critical phase—corporate engagement. In the coming months, the EMDP’s country teams will begin sending letters to and setting up meetings with companies they have ranked as the laggards on ESG disclosure in their local markets in an attempt to engage them to improve their practices.
On April 19, the EMDP unveiled its disclosure scorecard, which evaluates firms on their ESG reporting practices on a 100-point scale. The scorecard is divided into five 20-point pillars—one each for environmental, social, governance, sustainability oversight and country-specific issues. The country-specific component represents a portion of the scorecard that the EMDP’s country teams, already working in Brazil, India, Indonesia, South Korea and South Africa, will tailor to address topics specific to those markets.