Emerging Markets Insights

The next era of sustainable opportunity

At the start of 2023, Osmosis embarked on an extensive Emerging Markets research project, motivated by the compelling opportunity to challenge and reshape perceptions of sustainable investment in these rapidly-growing economies, which now represent half of global GDP.

 

I am delighted to share this collection of Emerging Markets Insights, offering a snapshot of the analysis undertaken by our team of Emerging Markets specialists using this new dataset. Our mandate was clear: replicate our tried-and-tested approach from the developed markets, while adapting it to the specific nuances of the Emerging Markets – and to do so with the same rigour and high standards that underpin all our research. 

Jamie Padkin, CFA

Head of Emerging Markets Research

Regulatory Rigour & the Rapid Growth of Environmental Disclosure

Disclosure regulations are exceeding expectations

Many Emerging Market countries are outpacing their developed markets counterparts
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Strengthening Data through Engagement

Engagement plays a vital role in data quality

Reporting practices are less established in some countries
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Emerging and Developed Sustainability Disclosure Rates have Reached Parity

China is no longer a laggard

Over the last 5 years, Emerging Markets have experienced a remarkable transformation
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Index Overview: Emerging vs Developed Markets

IT is the leading sector in both EM and DM

The Emerging Markets tend towards more resource-intensive industries
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EM Energy Landscape: Pathways, Pitfalls & the Importance of Resource Efficiency

China is central to global decarbonisation

Global emissions are largely driven by coal combustion for power
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Comparing Environmental Footprints: Emerging vs Developed Markets

Emerging Markets industries are more resource intensive

Large footprints provide an opportunity for investors seeking large environmental reductions
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Quantitative Outcomes of Resource Efficiency in Emerging and Developed Markets

Efficient companies tend to outperform inefficient

They also tend to beat analyst estimates, corroborating our findings in Developed Markets
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The Vital Role of Emerging Markets in the Whole Economy Aproach: Inside the EV Supply Chain

Uncovering Tesla's hidden supply chain impacts

Accounting only for direct environmental impact does not accurately reflect the activities of its suppliers
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