Norway is the world’s most sustainable country in terms of environmental, social and governance (ESG) investing, according to a report by RobecoSAM.
Scandinavia dominated the top of the list, with Nordic neighbours Sweden, Finland and Denmark ranking just behind Norway, whilst Switzerland followed in fifth.
The countries maintained their strong positioning thanks to their leadership in governance, innovation, human capital, and environmental indicators, according to RobecoSAM.
Max Schieler, senior sustainable investment country analyst at the firm, said: “A proper country sustainability assessment provides additional information and valuable insights into a country’s underlying risk drivers that we believe are critical to making balanced investment decisions.”
Elsewhere in the globe geopolitical developments and other sustainability indicators were reflected in the report’s country ESG scores and rankings.
Out of the 150 countries surveyed, thirteen achieved an ESG score of eight or higher out of ten. Ten of these countries were European, whilst economic giants such as the US and Japan were missing from the group.
From the Americas to Europe, governance and democratic institutions are under increasing pressure from populist forces, according to the study.
Both the US and UK have seen their ESG score gradually worsen since 2016. This was put down to a strong link to the political situations in both countries, which are characterised by “increasing polarization, deeply divided populations, growing dissatisfaction with traditional parties, and increasing populism”.
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