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A New Dawn – Rethinking Sovereign ESG (English)

Environmental, social, and governance (ESG) investing is quickly becoming ordre du jour in sovereign debt investing. There remains, however, lack of clarity around frameworks for scoring sovereign ESG performance, industry practices, and the definition of sustainability itself. This World Bank publication consists of two independent reports. The first part is written by the World Bank and takes stock of the current sovereign ESG investing framework and proposes improvements. The second part presents a survey on ESG practices among emerging market (EM) sovereign debt investors conducted by J.P. Morgan (JPM), which launched the first EM sovereign ESG index in 2018. This publication is a result of the World Bank~^!!^s proactive engagement with stakeholders on pertinent sovereign ESG issues and is part of a publication series under the auspices of the Global Program on Sustainability (GPS).


  • Author

    Gratcheva,Ekaterina M., O'Reilly Gurhy,Bryan, Emery,Teal, Wang,Dieter, Oganes,Luis E., Linzie,Jarrad K., Harvey,Lydia, Marney,Katherine, Murray,Jessica, Rink,Rupert

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  • Doc Name

    A New Dawn – Rethinking Sovereign ESG

  • Keywords

    Equitable Growth, Finance & Institutions; risks from climate change; response to climate change; sovereign debt; sovereign debt market; income bias; financial sector specialist; sovereign credit rating; capital market development; improve risk; credit rating agencies; credit rating agency; annual freshwater withdrawal; bond market development; private sector participant; risk management decision; sustainable development goals; peer review process; Marine Protected Areas; source capital; principal component analysis; impact of climate; central bank portfolio; government bond market; multilateral development bank; development of market; development finance institution; climate change impact; gross national income; comments and feedback; country risk assessment; cooling degree days; nitrous oxide emission; debt management operation; privileges and immunity; fossil fuel energy; global capital market; global climate policy; natural resource depletion; food production index; availability of data; new product development; investment process; sustainable outcomes; investment approach; sovereign bond; traditional investment; environmental data; natural capital; investment incentive; Learning and Innovation Credit; data provider; asset class; financial system; missing value; environmental performance; fiduciary law; sovereign issuer; private institution; financial industry; richer countries; investment goals; capital allocation; investment objective; governance issue; fiduciary duty; investment impact; investment mandate; capital flow; data portal; environmental condition; research show; guiding principles; advanced economy; data gaps; Investment Flow; social issue; research department; small entities; data coverage; across border; investment portfolio; social factor; transparent methods; take stock; capital stock; regulatory change; financial value; institutional investor; social system; renewable electricity; account data; environmental indicator; quality datum; recent development; high frequency; environmental resource; asset allocation; Environmental Resources; co2 emission; carbon dioxide; primary vehicles; investment purpose; mammal species; forest depletion; agricultural land; corporate investment; drought index; net emission; extreme temperature; Climate Risk; electricity production; energy import; investor community; less inequality; technical expertise; machine learning; environmental issue; missing data; constructive dialogue; social condition; sustainable finance; proactive engagement; prosperous countries; country-level indicator; market index; corporate entity; primary concern; sovereign index; credit worthy; satellite data; stranded asset; statistical relationship; present evidence; investment benchmark; environmental factor; environmental risk; survey results; time horizon; primary purpose; investment return; Sustainable Investing; ongoing evolution; bond investor; market reality; project financing; political commitment; Global Programs; investment fund; government pension; corporate bond; commercial purpose; Environmental Policy; original work; sole responsibility; financial statement; transmission channel; copyright owner; knowledge product; carbon risk; health emergency; investment asset; private market; mitigation policy; financial return; data requirement; creative design; sustainable management; bond issuance; market segment; investment demand; peer group; financial issue; sustainable future; income adjustment; financing instrument; natural asset; deeper look; environmental degradation; empirical findings; environmental economist; corporate world; development policy; as financial; investor relation; Junior Professional; country capital; financial risk; financial aspect



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Gratcheva,Ekaterina M. O'Reilly Gurhy,Bryan Emery,Teal Wang,Dieter Oganes,Luis E. Linzie,Jarrad K. Harvey,Lydia Marney,Katherine Murray,Jessica Rink,Rupert

A New Dawn – Rethinking Sovereign ESG (English). Washington, D.C. : World Bank Group.