Philippine firms have been recognized for sustainability, paving the way for global investment transformation.

In research conducted by BMI, a Fitch Solutions Company, the Philippines is one of the emerging Asian hubs for manufacturing in 2023, with a remarkable surge in exports since 2015. Projecting substantial increases in manufactured goods exports for the Philippines, this shift has notably boosted wages. Yet, despite slower growth in 2023, the outlook for 2024 remains promising these emerging markets.

Recently, nine Philippine companies were recognized in the Top 250 emerging markets for sustainability in a summit in Hong Kong. In this groundbreaking initiative, the Future Investment Initiative (FII) Institute aims to bolster investments in emerging markets, spotlighting nine Philippine companies that have excelled in sustainable business practices.

“It is immensely reassuring to see companies such as these recognized for their leadership and good corporate practice,” says Richard Attias, CEO of FII Institute. “As the planet grapples with climate change, and as global investors seek out well-governed companies with robust business models, investors are asking for help to identify sustainable business practices and reduce risk.”

The FII Institute, renowned for its commitment to addressing global challenges, is now convening an investor summit in Hong Kong. At the forefront of this event is the launch of an innovative tool named the “Inclusive ESG Tool,” designed to empower companies in emerging economies to enhance their sustainability efforts. This tool not only assists in refining sustainability but also aids global investors in identifying frontrunners in current and prospective sustainable performance.

Despite a significant surge in global sustainable investments, emerging markets receive a mere fraction—less than 10 percent—of ESG capital flows, despite contributing 58 percent to the global GDP. To address this disparity, the publicly accessible online tool has been crafted in collaboration with ESG Book, a prominent data provider. Its purpose is to enable investors to thoroughly assess ESG (Environmental, Social, and Governance) performance and, subsequently, make more informed investment decisions.

Crucially, this initiative aims to bridge the existing data gaps in emerging market analysis. The Inclusive ESG Score, a key facet of this tool, identifies companies that not only prioritize ESG factors but also cultivate sustainable growth over the long term.

By leveraging this new tool, there is potential to narrow the staggering $5.4 trillion ESG investment gap prevalent in emerging markets. Specifically, the tool indicates that $4.6 trillion could be unlocked across Asia alone.

Below are the companies from the Philippines included in the list:

• Edamama
• Kindred
• Kraver’s Canteen
• Packworks
• Peddlr
• SariSuki
• Shoppable Business
• Sprout Solutions
• TANGGapp

This move highlights the Philippines’ leadership in sustainable business practices within emerging markets and underscores the potential for significant shifts towards more sustainable investments globally.

Leading Sustainability in Emerging Markets

In a monumental stride, this recognition underscores the country’s leadership in embracing Environmental, Social, and Governance (ESG) principles, aligning with the global investor community’s growing inclination towards responsibly governed businesses. These companies’ achievements signal a notable shift towards prioritizing sustainable practices, reflecting the evolving landscape of corporate responsibility within emerging markets.

The launch of the “Inclusive ESG Tool” signifies a pivotal step towards empowering companies in these markets to elevate their sustainability endeavors. This innovative tool not only assists in refining sustainable practices but also aids global investors in pinpointing frontrunners in sustainable performance. By bridging the glaring gap where only a fraction of ESG capital flows into emerging markets, despite their significant contribution to the global economy, this initiative addresses a critical disparity in sustainable investment distribution.

Leveraging this tool has the potential to unlock an estimated $4.6 trillion across Asia alone, marking a pivotal moment in redirecting global investments towards sustainability and showcasing the prospect of a more responsible and balanced global investment landscape.