Striking a balance between pursuing economic growth and addressing social and environmental challenges is not easy, yet it’s crucial for emerging markets. There’s no doubt that growth has lifted millions of people from poverty over the last half-century, but it has come at a cost. This dilemma of whether to emphasize economic growth or progress on environmental, social, and governance issues highlights the need for alternative metrics to measure progress in emerging countries.
In this discussion, the Cornell Emerging Markets Institute argues for creating the EMI D-ESG framework, which measures sustainable growth that is inclusive, environmentally friendly, and focuses on governance. It consists of four pillars: “D” for economic growth, “E” for environment, “S” for social, and “G” for governance, thereby linking economic growth to ESG.
