ESG in Emerging Markets: Challenges, Opportunities, and What Western Boards Get Wrong

Many ESG strategies are designed in London or New York but executed in Lagos or Jakarta. The result? Misalignment, misunderstanding, and missed opportunities. Emerging markets come with ESG risks—but also innovations and insights that many Western boards overlook.

You’re a corporate strategist, sustainability officer, or board director expanding your footprint in emerging markets. You’re committed to high ESG standards—but realise a one-size-fits-all approach won’t work.

To lead on ESG in emerging markets, you must lead with humility, flexibility, and partnership. It’s not about imposing Western values—it’s about finding shared value.

1. Adapt, Don’t Lower, Standards Avoid the trap of “ESG-lite” in less-regulated regions. Instead, co-design frameworks with local partners that reflect both global expectations and local context.
2. Focus on Capacity Building Many suppliers or partners want to do better—but lack the tools. Invest in education, infrastructure, and support.
3. Leverage Local Innovation Some of the most agile ESG practices emerge from constraint. Learn from local circular economy models, off-grid solutions, and social enterprises.
4. Recognise ESG as a Development Issue In emerging markets, ESG is inseparable from issues of equity, inclusion, and nation-building. Partner with NGOs, local governments, and communities.
5. Report Honestly Be transparent about where standards are harder to meet—and what you’re doing to close the gap. Investors value realism over PR.

When you embrace the complexity of ESG in emerging markets, you unlock not just compliance—but innovation, loyalty, and sustainable growth.

Emerging markets aren’t an ESG exception—they’re the ESG frontier. Lead with curiosity and commitment, and you’ll lead the sector.