Meanwhile, US and UK see political freedom scores slip
abrdn’s Research Institute (ARI) has announced the results of its annual ESG Index that ranks and scores 135 countries across 19 environmental, social and governance (ESG) indicators to support investment analysis and decision-making.
It has revealed that:
ARI’s ESG index captures data from over the past decade to highlight the ESG issues and challenges faced in each country. It pinpoints the progress and how each can be bettered in ways that are appropriate for the individual nation.
It’s 19 indicators, which are aligned to the EU’s Sustainable Development Goals (SDGs), are identified as follows:
Environmental - CO2 emissions intensity; air quality; species protection; and, drinking water.
Social - life expectancy at birth; mortality rate under 5; mean years of schooling; expected years of schooling; gender inequality index; wellbeing ladder index; employment to population ration; and, income inequality.
Governance (& political) - civil society engagement; social group inequality; freedom of expression; absence of corruption; clean elections; transparent laws with predictable enforcement; and, access to justice.
Stephanie Kelly, Deputy Head of ARI, said:
“The aim of the ESG Index is to better support our investment teams with their ESG analysis.
“It’s particularly interesting to see many of the developed countries ranking low on political and governance factors over the past decade, particularly in the US where the Trump administration has had a major impact. However, the improving carbon emissions intensity for many of the top performing economies is certainly a good news story, perhaps reflecting that the policy efforts being made in these countries to reduce emissions are having a clear effect.
“We want to increase the understanding that ESG factors are fundamental for a country’s growth and development, and the very specific measures we have used make it easy for investors to see what can be improved and where. Tracking improvements or steps backward in subsequent years essentially helps paint a vivid picture for investors.”
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