Environmental risk in EM Debt: introducing a new framework

Investors urgently need a framework to clearly assess environmental sustainability and risk on a country-by-country basis. Developed by WWF and Ninety One, the Climate and Nature Sovereign Index aims to tackle this need. It marks an important first step towards harnessing the potential of sovereign debt investing to help our planet’s transition towards sustainability.

2020 M07 22

20 minutes

Investors urgently need a framework to clearly assess environmental sustainability and risk on a country-by-country basis. Developed by WWF and Ninety One, the Climate and Nature Sovereign Index aims to tackle this need. It marks an important first step towards harnessing the potential of sovereign debt investing to help our planet’s transition towards sustainability.

WWF and Ninety One introduce the Climate and Nature Sovereign Index – an important first step towards harnessing the potential of sovereign debt investing to help our planet’s transition towards sustainability.

The fast view

  • The natural world — the foundation of every nation’s development and continued growth — is in steep decline, creating systemic risks for economies globally.
  • How a country manages natural assets is significant for its future sustainability and growth prospects; sovereign debt investors need a clear assessment of this and associated risks.
  • To this end, WWF and Ninety One have developed a Climate and Nature Sovereign Index (CNSI).
  • The CNSI incorporates real-time data and forward-looking projections; thanks to ongoing work in geospatial modelling and remote sensing these are now obtainable.
  • The CNSI is not only a measure of risk; it should also help identify the opportunities to allocate capital to where it is most needed. But to achieve this, it must be complemented with new financing mechanisms.

Download the paper

Live webinar recording

As part of the EM Debt in discussion webinar series, Portfolio Managers Andre Roux and Mike Hugman, and WWF’s Susanne Schmitt, introduced our new Climate and Nature Sovereign Index and answered client questions.

 

All investments carry the risk of capital loss. The value of investments, and any income generated from them, can fall as well as rise and will be affected by changes in interest rates, currency fluctuations, general market conditions and other political, social and economic developments, as well as by specific matters relating to the assets in which the investment strategy invests. If any currency differs from the investor’s home currency, returns may increase or decrease as a result of currency fluctuations.

Wichtige Informationen

Diese Mitteilung dient lediglich der allgemeinen Information und ist nicht als Beratung zu verstehen.

Alle darin enthaltenen Informationen gelten als zuverlässig, können jedoch ungenau oder unvollständig sein. Die Ansichten sind die des Verfassers zum Zeitpunkt der Veröffentlichung und spiegeln nicht unbedingt die Ansichten von Ninety One wider.

Alle geäußerten Meinungen werden ehrlich vertreten. Diese sind jedoch nicht garantiert und somit sollte sich auf diese nicht verlassen werden