Active Engagement in Emerging Market Debt
Wednesday, October 5, 2022 | 8:55 AM - 9:15 AM

Emerging Market Debt (EMD) is a tough asset class in which to implement effective ESG integration that balances the needs of investors with the promotion of ESG concepts. Issues over data paucity and accuracy will always inhibit ESG in EMD compared to developed markets. Some asset managers advocate using exclusions regarding emerging market sovereigns and corporates with poor ESG scores. However, we believe this is backwards-looking and will not capture positive ESG trends and developments. In this session, Federated Hermes will discuss the merits of ESG integration in EMD as both a risk mitigant tool and a potential alpha source, outlining how it aims to use its own dynamic proprietary ESG sovereign scoring methodology to outperform the conventional J.P. Morgan EMBI Global Diversified Index on a total portfolio ESG weighted average basis over the cycle.