KEY TAKEAWAYS

• While there is an established process for gathering global data on the ESG risks for listed entities, similar coverage for emerging and private markets contains significant gaps because relevant products are often still too niche.
• To bridge such gaps, a country risk analysis can function as a proxy for risk measurement across a range of asset classes.
• A high level perspective is essential to understanding the local context of a company’s operations and offers a proxy for asset classes that are less well covered by traditional ESG products.
• ISS ESG supports investors by providing a macro perspective. The ESG Country Rating offers a perspective on, for example, existing supply chain risks as well as geopolitical risks that are present in markets around the world.