The Potential Implications of Economic and Social Rights for Sovereign Debt Investing

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 recogni...

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Bibliographic Details
Main Author: Gratcheva, Ekaterina
Other Authors: Brook, Anne-Marie, Gurhy, Bryan, Wang, Dieter
Format: eBook
Language:English
Published: Washington, D.C The World Bank 2023
Series:Equitable Growth, Finance and Institutions Insight
Subjects:
Esg
Online Access:
Collection: World Bank E-Library Archive - Collection details see MPG.ReNa
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653 |a Sovereign DEBT Investing 
653 |a ESG 
653 |a Investment Process 
653 |a Financial Sector and Social Assistance, Economic and Social Rights 
653 |a Human Rights 
653 |a Finance and Financial Sector Development, Debt Markets 
700 1 |a Brook, Anne-Marie 
700 1 |a Gurhy, Bryan 
700 1 |a Wang, Dieter 
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520 |a 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. 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. The rest of this paper is organized as follows. Section 2 explains the relevance of ESRs to the sovereign debt asset class. Section 3 introduces the income adjusted ESR dataset, and section 4 illustrates the insights that this dataset can provide for sovereign debt investors. Section 5 provides one practical example of how sovereign debt investors could use such a dataset in practice. Section 6 presents our conclusions