Why Invest in Domestic Emerging Markets?
“Large Growing Markets are Financially Underserved”
Shifting demographics
Minorities expected to increase from 39% to 44% (157 million) by 2030 and will become the majority by 2043 1
Demand for services and products
Significant growth in minority consumers (and employees) will drive increased demand for services and products targeting these market segments
Growing expectations for institutions to “do the right thing”
• “87% of global consumers believe business needs to place at least equal weight on society’s interests as on business’ interests” 2
• Corporate governance: ESG focus
- ISS and Glass Lewis now include ESG scoring for public shareholders
- Investment firms increasingly focused on ESG for portfolio companies
• “Supplier diversity can be leveraged into greater market share and profitability…people do care what these companies do….what effects they have in their communities” 4
(1) U.S. Census Bureau; (2) 2012 study by Edelman good purpose®: (3) Source: Employee Perceptions of Corporate Social Responsibility: Study from the Center for Creative Leadership: (4) Dr. Fred McKinney, President & CEO of the Greater New England Minority Supplier Development Council, (5) Bank of America / McKinsey & Company, ROI of D & I.
