Climate Change Data

Environmental Metrics

ESG Focus Areas

• Capital flows to Emerging Markets and Developing Economies (EMDEs)
• ESG data availability and quality in EMDEs
• ESG regulations in developed markets and their impact on EMDEs
• Mitigation of capital diversion from EMDEs

Climate Goals & Targets

Environmental Challenges

• ESG mainstreaming can reduce capital flows to EMDEs due to weak ESG scores.
• Deficiencies in ESG data and scoring exacerbate inefficiencies in capital allocation and reduce flows to EMDEs.
• Country-level ESG scores are highly correlated to per capita income, creating an income bias against EMDEs.
• Stringent ESG disclosure requirements increase compliance costs and risks for investing in EMDEs.
• Data gaps and bias in ESG data for EMDEs, particularly for SMEs.
• Lack of forward-looking ESG data and insufficient allowance for transitional activities in EMDEs.

Mitigation Strategies

• Reforming EMDE market disclosures and frameworks (e.g., adopting TCFD, ASEAN Taxonomy).
• Developing new data collection methods and sources (e.g., AI, NLP, geospatial data).
• Creating innovative ESG investment products (e.g., sustainability-linked bonds, theme-specific GSS+ bonds, EMDE-focused equity funds).

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, ASEAN Taxonomy, EU Taxonomy, ISSB