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A key point of concern for ESG in developing countries

A key point of concern for ESG in developing countries

by Samuel Girma -
Number of replies: 5

A key point of concern for ESG in developing countries is the financial burden of compliance, which diverts limited resources from immediate priorities like poverty alleviation, job creation, and infrastructure development.

How can policymakers and international stakeholders design ESG frameworks that balance sustainability goals with the urgent developmental needs of low-income nations without compromising either?

In reply to Samuel Girma

Re: A key point of concern for ESG in developing countries

by Leela Julong -
You’ve highlighted a very real challenge. For many developing countries, ESG can feel like an added cost rather than a pathway to long-term progress. A more balanced approach would require frameworks that are flexible, supported by capacity-building, and paired with financial incentives or technology transfer. When global standards recognise local realities, ESG becomes less of a burden and more of a tool to accelerate development while still advancing sustainability goals.
Do share if you have additional thoughts on the above.
In reply to Leela Julong

Re: A key point of concern for ESG in developing countries

by Emmanuel Nwafor Osemene -
For the Third word countries the challenges are basically cover about 5 distinct areas namely:
Financial challenges, Economic priorities, consumer and investor Trends, Knowledge Gaps and Infrastructural issues
In reply to Emmanuel Nwafor Osemene

Re: A key point of concern for ESG in developing countries

by Leela Julong -
Thank you Emmanuel. You’ve pointed out some of the real structural barriers that often get overlooked especially financing, knowledge gaps, and infrastructure limitations. These are exactly the areas where stronger international support, capacity-building, and more flexible ESG frameworks are needed to make sustainability achievable rather than burdensome for developing economies.
In reply to Samuel Girma

Re: A key point of concern for ESG in developing countries

by Pamela Matovu Nabukeera -
This is a good question. ESG Frameworks developed for developing countries need to be relatable and customized to local contexts. When sharing ESG Frameworks, it is important to clearly explain that what, why and how questions
In reply to Pamela Matovu Nabukeera

Re: A key point of concern for ESG in developing countries

by Leela Julong -
You’re right to point out the need for relevance. ESG approaches that are designed without local input often miss the mark. Involving local stakeholders in shaping the frameworks and providing practical guidance can make ESG feel more achievable and genuinely supportive of development priorities.
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