Now that environment, social, and governance standards have gone mainstream among investors in the advanced economies, the question is what ESG criteria will mean for developing countries. A closer examination shows that such standards have little to offer export-dependent economies, and may even prove counterproductive.
CAMBRIDGE – The concept of environmental, social, and governance (ESG) reporting standards has gone mainstream. Major Wall Street firms have adopted ESG standards as a guide to responsible investment, compelling the thousands of corporations in which they invest to do so as well. But is ESG helping investors and corporations that operate in the Global South allocate capital more efficiently? Or is it just an expression of the rich world’s postmodern values and priorities?
CAMBRIDGE – The concept of environmental, social, and governance (ESG) reporting standards has gone mainstream. Major Wall Street firms have adopted ESG standards as a guide to responsible investment, compelling the thousands of corporations in which they invest to do so as well. But is ESG helping investors and corporations that operate in the Global South allocate capital more efficiently? Or is it just an expression of the rich world’s postmodern values and priorities?