Affirming the value of ESG in emerging market debt

Allianz Global Investors believes sustainability is a crucial factor for investing in emerging markets. Many countries are developing rapidly, but slow-moving key performance indicators and poor data coverage can fail to capture inflection points. AGI initially adopted a cautious approach to the sustainability classification of our emerging markets funds. Regulatory expectations under Europe’s Sustainability Finance Disclosure Regulation for sovereign funds were unclear – we therefore opted to position the funds as Article 6 (having no formal sustainability scope). With the improvement in...