Real-world impact in emerging markets – an asset owner perspective

Pensions for Purpose’s real-world impact in emerging markets (EMs) report sheds light on asset owners’ perspectives on impact investing in emerging nations.

* Achieving Paris Agreement goals is impossible without supporting emerging economies in their transition to sustainable practices.
* Under 0.1% of UK pension assets are allocated to developing economies despite $4tn sustainable development funding gap.
* Warns ESG factors and net-zero targets can unintentionally exclude emerging markets, urging investment in 'brown-to-green' strategies to ensure a unified global transition. Encourages asset owners to consider energy transition opportunities in emerging markets.

Reaching the goals of the Paris Agreement by 2030 is impossible without supporting emerging economies transition to more sustainable practices. Yet, UK pension funds are allocating a mere 0.1% of their assets to developing economies, overlooking critical investment opportunities that could drive significant global impact.

The report highlights the need for capital owners to address a $4tn funding gap in global sustainable development goals (SDGs) through emerging market investments.

However, with half of the SDG funding gap linked to the energy transition in emerging economies, these regions represent a critical opportunity for impactful investment.