Regulators and banks in emerging markets like Indonesia, Bangladesh and Mongolia5 are openly promoting sustainable finance through ESG standards. Around the world, there is increasing evidence that integrating ESG and ESRM in business practices result to positive returns, those that get reflected on financial statements, client retention and organizational reputation.
FDI does not include investments in financial assets, such as investments in stock or bond markets. FDI is investment in tangible assets in the real sector. That means that money and capital flows through FDI are not very volatile. And it is the volatility in such flows that keeps any central banker awake at night. Let me digress here.