**Global Investors Flock to Sustainable Investing as ESG Factors Gain Traction**

A growing number of global investors are shifting their focus towards sustainable investing, with emerging markets playing a crucial role in this trend. The latest report from the SGA Emerging Markets Growth Strategy highlights the importance of Environmental, Social, and Governance (ESG) factors in driving long-term growth and returns. As concern about climate change and social inequality continues to grow, investors are increasingly looking for ways to align their investments with their values. Sustainable investing, which considers the environmental, social, and governance impact of an investment, has become a key strategy for many institutional investors. The SGA Emerging Markets Growth Strategy’s Sustainability Report found that emerging markets are particularly well-positioned to benefit from this trend. With a large and growing middle class, emerging markets offer significant opportunities for sustainable investing. The report highlights the critical role that ESG factors play in driving growth and returns in these markets. For example, companies that prioritize sustainability and social responsibility are often better positioned to navigate the challenges of climate change and social inequality. This can lead to improved operational efficiency, reduced costs, and enhanced brand reputation. Governance is also an increasingly important factor in sustainable investing. Companies with strong governance structures are better equipped to manage risk and make long-term decisions that align with their values. The report also highlights the importance of stakeholder engagement and active ownership in driving positive change. By engaging with companies and advocating for better ESG practices, investors can help drive long-term growth and returns while promoting sustainable development. As the global investment landscape continues to evolve, it is clear that sustainable investing will play an increasingly important role. The SGA Emerging Markets Growth Strategy’s Sustainability Report provides valuable insights into the opportunities and challenges of this trend, and highlights the critical importance of ESG factors in driving long-term growth and returns. Investors seeking to capitalize on this trend would do well to consider the following key themes:

• Emphasis on ESG integration
• Growing focus on stakeholder engagement and active ownership
• Increasing recognition of climate change as a business risk
• Rising demand for sustainable investment products By staying informed about these trends and tailoring their investment strategies accordingly, investors can position themselves for success in this rapidly evolving landscape.