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.

Jul 22, 2020

20 minutes

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.

EMD webinar series

EM in Discussion

Join us for the second season of Ninety One Live: EM in Discussion where our experts drill into emerging market investing, discuss key themes and tackle questions on investors’ minds.

Important Information

This communication is provided for general information only should not be construed as advice.

All the information in is believed to be reliable but may be inaccurate or incomplete. The views are those of the contributor at the time of publication and do not necessary reflect those of Ninety One.

Any opinions stated are honestly held but are not guaranteed and should not be relied upon.

All rights reserved. Issued by Ninety One.

Location:Canada
Role:Select your role
Follow us:
LinkedIn
Twitter
© 2023 Ninety One. All rights reserved