Enhancing environmental, social, and governance (ESG) standards is not just a responsible endeavor but a strategic imperative for attracting capital, increasing business domestically and internationally, and attracting talent. Emerging markets (EMs) have historically lagged in this endeavor due to a lack of awareness, resource constraints, and weaker regulatory frameworks, driving consistently lower ESG ratings by major rating agencies. But the encouraging trend of positive initiatives, such as improved corporate governance codes, heightened environmental disclosures, and efforts to promote gender diversity, underscores the growing significance of ESG in EMs.
