Summary Sovereign ESG Ratings: Countries to Watch in 2023-Q2 | Maplecroft www.maplecroft.com
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The Sovereign ESG Ratings for 2023-Q2 highlight the difficulties countries encounter in managing their economic, political, environmental, and social priorities.
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Key Points
- Sovereign ESG Ratings for 2023-Q2 show that ESG issues are being overshadowed by competing political and economic priorities.
- Governments are at risk of neglecting long-term environmental and social goals due to budget constraints and short-term political demands.
- Sovereign debt investors can use ESG analysis to identify government issuers successfully navigating these challenges and engage to support policymaking.
- Six countries have been upgraded in the ratings, including the United Arab Emirates and Turkmenistan, while 25 countries have been downgraded.
- The Sovereign ESG Ratings provide insights into a country's overall trajectory and its performance in each ESG dimension.
- Over the past year, there have been shifts in clusters for countries, indicating changes in their ESG performance.
- Environmental factors have seen a decline, while improvements have been observed in global Human Rights provisions and Governance performance.
- Comprehensive datasets and advanced data science techniques can help isolate trends with a material impact on investment outcomes.
Summaries
17 word summary
Sovereign ESG Ratings for 2023-Q2 reveal countries facing challenges in balancing economic, political, environmental, and social interests.
58 word summary
The Sovereign ESG Ratings for 2023-Q2 show governments struggling to balance economic and political interests with environmental and social objectives. Six countries were upgraded, while 25 were downgraded. China and Australia made progress in environmental issues. Human rights provisions varied across regions. Engaging with governments can support policymaking and improve ESG outcomes. The full report offers in-depth analysis.
177 word summary
The Sovereign ESG Ratings for 2023-Q2 reveal the ongoing struggle of governments to balance economic and political interests with environmental and social objectives. This creates an opportunity for sovereign debt investors to engage with government issuers and contribute to policymaking. In this quarter, six countries were upgraded, while 25 countries were downgraded. Analyzing the ratings provides valuable insights into a country's trajectory and its standing compared to global peers. It also offers unique perspectives on emerging trends and risks across the nine ESG dimensions. Over the past year, 21 countries improved their ratings, while 45 countries were downgraded, primarily due to environmental factors. Notably, China and Australia have made significant policy advancements in environmental issues. Global Human Rights provisions have seen enhancements, with variations across regions. Governance performance has shown positive momentum. By engaging with sovereign issuers, investors can support policymaking and contribute to better ESG outcomes. The Sovereign ESG Ratings highlight the challenges faced by governments and emphasize the importance of ESG analysis for investors. The full report provides in-depth analysis and insights on the ratings.
475 word summary
The Sovereign ESG Ratings for 2023-Q2 reveal that governments are facing challenges in balancing economic and political priorities with environmental and social goals. This creates opportunities for sovereign debt investors to engage with government issuers and support policymaking. In this quarter, six countries were upgraded, including the United Arab Emirates and Turkmenistan, while 25 countries were downgraded, including Bolivia, Brazil, Gabon, Kazakhstan, and New Zealand.
Interrogating the Sovereign ESG Ratings provides valuable insights into a country's overall trajectory and how it compares to global peers. The ratings cluster analysis offers unique perspectives on developing trends and risks in each of the nine ESG dimensions. This information can be used for thematic portfolio construction, impact investing, and engagement with sovereign issuers.
Over the past year, 21 countries have been upgraded while 45 countries have been downgraded. The decline in overall ESG scores is concentrated on environmental factors, with minimal changes in social and governance pillars. However, there have been important policy improvements in China and Australia regarding environmental issues.
Improvements have been seen in global Human Rights provisions, with regional variations. The Americas, Africa, and Asia have shown progress, while MENA countries have seen little change and Europe and Oceania have witnessed a deterioration. Greece, Israel, Jordan, and Poland have experienced slippage in protections leading to cluster changes in ratings.
Governance performance has also shown positive momentum over the past year. Countries often trade-off institutional stability for fundamental freedoms. The Philippines and Turkmenistan have achieved greater stability at a social cost, while Tanzania and South Africa have seen gains through reformist momentum and judicial independence.
Understanding the complexities of environmental, social, and governance characteristics is challenging. However, comprehensive datasets and advanced data science techniques can help isolate trends that have a material impact on investment outcomes.
To find out more about the countries experiencing significant shifts in the Sovereign ESG Ratings, download the full report. The report provides in-depth analysis and insights on the ratings.
Overall, the Sovereign ESG Ratings highlight the challenges governments face in balancing competing priorities and the importance of ESG analysis for investors. By engaging with sovereign issuers, investors can support policymaking and contribute to better ESG outcomes over the long term. The ratings also provide valuable information for thematic portfolio construction, impact investing, and engagement strategies.
Maplecroft, a Verisk business, provides global risk datasets covering environmental, social, political, and economic issues for countries, commodities, and industries. Their expertise in ESG analysis helps set new standards in sovereign ESG analysis.
In conclusion, the Sovereign ESG Ratings for 2023-Q2 reveal the challenges governments face in balancing priorities and the opportunities for investors to engage and support better ESG outcomes. The ratings provide valuable insights into a country's performance and trends in environmental, social, and governance dimensions. Download the full report for a comprehensive analysis of the countries experiencing significant shifts in the ratings.
483 word summary
The Sovereign ESG Ratings for 2023-Q2 show that governments are grappling with the task of balancing economic and political interests with environmental and social objectives. This presents an opportunity for sovereign debt investors to engage with government issuers and aid in policymaking. In this quarter, six countries, including the United Arab Emirates and Turkmenistan, were upgraded, while 25 countries, such as Bolivia, Brazil, Gabon, Kazakhstan, and New Zealand, were downgraded.
Analyzing the Sovereign ESG Ratings offers valuable insights into a country's overall trajectory and its standing compared to global peers. The ratings cluster analysis provides unique perspectives on emerging trends and risks across the nine ESG dimensions. This information can be utilized for thematic portfolio construction, impact investing, and engagement with sovereign issuers.
Over the past year, 21 countries have seen an improvement in their ratings, while 45 countries have been downgraded. The decline in overall ESG scores mainly stems from environmental factors, with minimal changes in the social and governance pillars. However, China and Australia have made significant policy advancements concerning environmental issues.
Global Human Rights provisions have experienced enhancements, albeit with regional variations. The Americas, Africa, and Asia have made progress, while MENA countries have seen little change, and Europe and Oceania have witnessed a decline. Greece, Israel, Jordan, and Poland have witnessed a regression in protections leading to cluster changes in ratings.
Governance performance has also shown positive momentum over the past year. Countries often strike a balance between institutional stability and fundamental freedoms. The Philippines and Turkmenistan have achieved greater stability at the expense of social costs, while Tanzania and South Africa have made gains through reformist momentum and judicial independence.
Understanding the complexities of environmental, social, and governance characteristics is challenging. However, comprehensive datasets and advanced data science techniques can help identify trends that significantly impact investment outcomes.
To gain more insight into countries undergoing significant shifts in the Sovereign ESG Ratings, download the complete report. The report offers in-depth analysis and insights on the ratings.
Overall, the Sovereign ESG Ratings underline the challenges governments face in balancing competing priorities and the importance of ESG analysis for investors. By engaging with sovereign issuers, investors can support policymaking and contribute to better ESG outcomes in the long run. The ratings also provide valuable information for thematic portfolio construction, impact investing, and engagement strategies.
Maplecroft, a Verisk business, supplies global risk datasets covering environmental, social, political, and economic issues for countries, commodities, and industries. Their expertise in ESG analysis establishes new benchmarks in sovereign ESG analysis.
In conclusion, the Sovereign ESG Ratings for 2023-Q2 shed light on the challenges faced by governments in balancing priorities and the opportunities for investors to engage and promote improved ESG outcomes. The ratings offer important insights into a country's performance and trends across environmental, social, and governance dimensions. Download the full report for a comprehensive analysis of countries experiencing significant shifts in their ratings.