While many U.S. companies are reevaluating their approach to sustainability and environmental, social and governance amid political uncertainty and regulatory pushback, the story is markedly different in emerging markets. Across Latin America, Central & Eastern Europe, Middle East and Africa, and Asia, corporates and financial institutions are not only maintaining but actively accelerating their commitments to sustainability.
This renewed conviction is rooted in a shared understanding: strong sustainability credentials are now indispensable for supporting access to global capital, effective risk mitigation and enduring competitiveness. With European, Asian and multilateral investors continually raising the bar on sustainability standards and transparency, emerging market issuers recognize the urgency of aligning with international best practices—especially as regulatory ambiguity in the U.S. pushes them to diversify funding sources. Frameworks like the Science Based Targets initiative (SBTi) for emissions and the ISSB/IFRS sustainability standards for reporting are quickly becoming the benchmarks for credible integration of environmental, social and governance factors.
Crucially, the forces driving adoption of stewardship and sustainable investing factors—climate risk, resource scarcity, evolving social expectations and the demand for transparency—are structural and long-term, largely unaffected by short-term political cycles or regional policy shifts. As global capital increasingly rewards issuers with robust sustainability trajectories, companies in emerging markets are deepening their commitments and delivering measurable progress. We’ve seen many examples of this commitment, including:
- DP World (UAE) became the first company in the Middle East’s logistics industry to achieve SBTi validation for its climate targets—including Scope 1 direct emissions, purchased electricity (Scope 2), and value-chain emissions from suppliers and customers (Scope 3). The firm’s rapid shift—already achieving 65% renewable electricity usage and aiming for 100% by 2040—directly reduces exposure to energy price volatility and regulatory risks, supporting stable cash flows and long-term cost efficiency. The issuance of a $1.5bn green sukuk, with most proceeds allocated to clean transport and green buildings, demonstrates DP World’s access to diversified, sustainability-linked capital markets, lowering the cost of financing and supporting growth. Its prioritization of biodiversity—risk-mapping across 60 sites, a dedicated biodiversity statement and a $100mn blue bond for marine ecosystem projects—addresses regulatory, reputational and operational risks that could materially impact asset values and revenue generation in sensitive locations.
- Minerva (Brazil), a leading beef exporter, has achieved full supply chain traceability and set net-zero goals for 2035, including the use of 100% renewable electricity and earning a “gold seal” under the Brazilian GHG Protocol. These measures strengthen Minerva’s market position amid growing demand for climate-resilient products, reduce reputational and compliance risks, and open opportunities for premium pricing and access to sustainability-focused investors—factors with clear financial implications.
- A trio of leading banks in the Middle East (Akbank TAS in Türkiye, First Abu Dhabi Bank, Emirates NBD in UAE) are innovating in sustainable finance by enhancing scenario analysis, deepening engagement with facilitated emissions, and embedding stewardship and sustainability into how they approach lending, executive pay and governance. Together, these initiatives help bolster risk management, align with emerging regulatory frameworks, and attract sustainability-oriented capital, thereby enhancing franchise value and long-term shareholder returns.
- JSW Steel (India) is progressing toward net zero by 2050, 20 years ahead of the national target. The company’s efforts include: aggressive emission intensity reductions, renewable energy investments, projects related to green hydrogen and carbon capture, Responsible Steel certification and Scope 3 innovations—all supported by robust partnerships and transparent reporting. These efforts position JSW Steel to benefit from preferential access to global markets, lower financing costs and reduced exposure to transition risks, all of which are material to its financial resilience and growth prospects.
These four examples signify a broader trend across emerging markets. In an environment where stewardship and sustainable investing performance is increasingly linked to credit quality, sovereign risk and portfolio resilience, the adoption of internationally recognized frameworks and transparent reporting practices provide a more robust basis for risk assessment and investment decision-making. The acceleration of these initiatives in emerging markets is already being reflected in improved sustainability ratings, enhanced investor engagement and, in some cases, tightening credit spreads for the leading issuers.
Despite the change we’ve seen in the U.S., there are no signs of sustainability momentum slowing in emerging markets. On the contrary, companies are strengthening their practices to build resilience, attract international capital and future-proof their operations—demonstrated by regular milestone updates, transparent reporting and board-level oversight. While U.S. regulatory shifts remain an important consideration, they are not deterring sustainability progress globally; rather, they are accelerating the drive among emerging market corporates to align with international best practices.
