In Search of an ESG Framework for Emerging Markets. What about growth?

Abstract

As the climate crisis and societal issues like inequality intensify, questions are being raised about the need to focus more on environmental and social concerns as opposed to a single-minded obsession with growth. However, this perspective is hard to accept for many emerging markets where growth matters. But neglecting the environmental and societal concerns is not an option either. There is indeed a need to find an alternative metrics for measuring progress in the Emerging Countries.

The answer of Cornell’s Emerging Markets Institute at the Cornell S.C. Johnson College of Business is to add a “D” to the very important Environmental, Social and Governance (ESG) acronym. For the past two years, EMI team has been dedicated to developing a unique framework known as the Emerging Markets Economic Growth and ESG (EMI D-ESG) Framework which aims to measure sustainable development in emerging markets by providing guidelines on balancing Economic Growth and ESG (Environmental, Social, and Governance) factors.This working paper discusses the EMI D-ESG Framework explaining the approach and how it is designed for the Emerging Markets.