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The financial costs of mitigating social risks: costs and effectiveness of risk mitigation strategies for emerging market investors

Research reports

Written by Joseph Feyertag, Ben Bowie

Image credit:Visual China Group via Getty Images.

This report assesses the costs and effectiveness of responsible investment practices in emerging market contexts. Its results make the business case for investments in social risk mitigation and avoidance practices.

Such practices include community engagement efforts, impact assessments and the establishment of grievance resolution mechanisms. Implemented correctly, responsible investment practices engender confidence and trust between investors and local communities, which secures social buy-in and mitigates the financial risks associated with disputes.