This paper discusses both the relevance of economic and social rights (ESRs) for environmental, social, and governance (ESG) investing in the sovereign debt asset class and how to start incorporating these rights into the investment process in a practical way. Many in the investment industry recognize the potential role that investors can play in influencing a country’s decisions on environmental and social issues, including human rights (UN PRI, 2020, 2022). Investors are also increasingly acknowledging the potential to influence a sovereign’s actions on social issues, such as ESRs, given the state’s direct role in providing a pathway to social advancement for its citizens.
Gratcheva, E., Gurhy, B., Wang, D., Brook, A.-M., Clay, K., & Randolph, S. World Bank and Human Rights Measurement Initiative (HRMI). 2023. The Potential Implications of Economic and Social Rights for Sovereign Debt Investing. Equitable Growth, Finance and Institutions Insight. Washington, DC: World Bank. License: Creative Commons Attribution NonCommercial (CC BY-NC 3.0 IGO).
