utility-drawer__close
0
Add funds
Fund 1
Fund 2
Fund 3
Fund 4
TOOLS
The Morningstar Fund Compare tool quickly evaluates different funds against one another. In addition to Nuveen funds, add any MF, CEF or ETF available from Morningstar. Important information and disclosures are included after you click Generate Report. Please ensure to enable pop-ups in your browser.
The Morningstar Portfolio Review tool compares and analyzes your portfolio holdings. In addition to Nuveen funds, add any MF, CEF or ETF available from Morningstar. Important information and disclosures are included after you click Generate Report. Please ensure to enable pop-ups in your browser.
utility-drawer__mobile-restriction Tools are currently unavailable for use on mobile. Please visit the desktop site.
fund compare tool image
Fund Compare
Quickly evaluate different MFs, CEFs and ETFs against one another
portfolio review tool image
Portfolio Review
Generate a detailed analysis of your portfolio holdings including MFs, CEFs and ETFs
Image of Municipal bond investing ladder tool
Municipal Bond Ladder Tool
Learn how a laddered portfolio may perform in rising rate environments
Powered by Morning star
Confirm your location and role
location select
language select
Responsible Investing

ESG investing in EM debt: enhancing sustainable development outcomes

solar panels

Inherent challenges in EM ESG analysis

Today’s financial markets are at an extraordinary juncture, grappling with persistently high inflation, war in Eastern Europe, global climate change and the ongoing and severe effects of the COVID-19 pandemic. Against this backdrop, fixed income investors are increasingly seeking to generate financial returns while building portfolios that support positive outcomes through environmental, social, and governance (ESG) investing.

In an emerging markets (EM) sovereign debt context, Nuveen’s focus is on enhancing sustainable economic, environmental, and human development outcomes, which we believe are highly correlated with material ESG factors. But executing on an EM ESG strategy is no easy feat. Research shows that existing third-party ESG frameworks generally fall short when it comes to accounting for countries’ differing starting points on the journey of economic development, leading to inherent income biases.1 The significant diversity within EM requires a highly refined approach to assess the ESG performance — and potential — of each country.

Drawing on Nuveen’s decades of experience investing in EM debt and longstanding leadership in fixed income responsible investing, we developed a proprietary EM ESG scoring framework that addresses the shortcomings of third-party approaches. Our framework adjusts for each country’s specific level of economic development, while ensuring that governance remains the cornerstone of every assessment. Furthermore, we address both environmental risks and related social consequences, recognizing the conflicts that can arise between the two when moving rapidly on climate change.

Most third-party ESG frameworks were created primarily for public equities in developed markets, making them ill-equipped to address the elements that make emerging economies unique. The complexity of sovereign issuers only adds to the challenge of ESG assessment.

Because of their biases toward wealthier countries, relying on existing external ESG frameworks results in skewing capital toward countries with less need for it. Nuveen seeks to correct this inequity.

Download the full PDF

Related articles
Responsible Investing 2021 – 2022 Annual Stewardship Report: Driving toward new frontiers
Welcome to our 2021-2022 Responsible Investing Stewardship Report, which chronicles our active-ownership initiatives and the outcomes we achieved over the past year.
Responsible Investing Take action with funds driven by responsible investing
Solutions designed to help plan sponsors achieve sustainable outcomes for participant portfolios and the planet.
Responsible Investing Core bond funds

You are about to access our website for visitors outside of the United States.

You are about to access our website for Nuveen Global Cities REIT

You are leaving the Nuveen website.

You are leaving the Nuveen website and going to the website of the MI 529 Advisor Plan, distributed by Nuveen Securities, LLC.

The Nuveen website for institutional investors is available for you.

You are about to access our website for visitors outside of the United States.

Contact us
Contact us
Back to Top