FII Institute Commits to Bridging $5.4 Trillion ESG Investment Gap in Emerging Markets

At the center of a global summit in Riyadh, the Future Investment Initiative Institute (FII) has set its sights on a profound challenge. Leaders and investors gathered at the institute have made a commitment today to tackle the disparity in Environmental, Social, and Governance (ESG) funding by proposing a resolution aimed at increasing ESG investments in emerging markets.

Uniting for Sustainable Growth

The FII Institute plans to unite leaders and investors from the West, East, and the Global South to take collective action on the inequalities present in current ESG frameworks. Considering that 86% of the world's population lives in emerging markets, which contribute to 58% of the global GDP, the institute has highlighted a critical imbalance; these burgeoning markets attract less than 10% of all ESG investments. This is starkly insufficient when looking at the annual investment shortfall of $2.5 to $3.7 trillion required to meet the United Nations' Sustainable Development Goals (SDGs) in developing countries.

Resolution and Commitment

To advance the inclusion of emerging markets in ESG investments, the resolution calls for several key actions:

• A pledge from FII Institute partners to integrate an inclusive ESG methodology, aiming to boost managed assets in emerging markets to 30% of global sustainable development portfolios by 2030;
• The urgent adoption of international sustainability disclosure standards in both emerging and developed markets;
• Recognition of the impending implementation of IFRS-1 and IFRS-2 standards by the International Sustainability Standards Board as vital steps for improving ESG inclusivity and data quality;
• Market players providing the data necessary for the world to make more informed investment choices.

The institute is dedicated to leveraging its convening power to promote the inclusive ESG agenda at PRIORITY summits worldwide, urging both governmental and private financial sectors to rise to the occasion.

A Call for Bias-Free ESG Ratings

Richard Attias, CEO of the FII Institute, has emphasized the need for a shift in ESG data tools that currently favor developed markets. Addressing the billions of dollars that developing markets miss out on due to a bias in prominent ESG ratings, Attias calls for broad adoption of inclusivity so that ESG factors can truly benefit every nation and the world as a whole.

About the FII Institute

The Future Investment Initiative Institute is a nonprofit foundation that thrives on data and investment to IMPACT humanity. With a global and inclusive approach, the foundation encourages prominent minds to transform ideas into practical solutions, focusing on artificial intelligence, education, healthcare, and sustainability.

ESG, Investment, Emerging