High‑yield (HY) issuers - companies rated below investment grade - operate with higher perceived credit risk and generally provide less consistent public disclosure than their investment‑grade (IG) counterparts. In ESG analysis, this discrepancy is especially pronounced. While IG companies typically publish detailed sustainability metrics and governance structures, HY issuers often disclose only the minimum required by regulation.

Emerging economies are generally considered to have high potential, primarily due to demographic growth and a population that is on average younger than that of developed countries. At the same time, however, these markets are often perceived as less robust in terms of environmental and social sustainability and the quality of democratic institutions. Precisely for this reason, the integration of sustainability criteria into emerging market debt portfolios represents a source of real and measurable added value.

2025 was marked by regulatory volatility and simplification efforts in the EU, with the European Commission announcing 10 omnibus packages to reduce regulatory burdens and boost competitiveness. These covered sustainability, chemicals, defence, digital, agriculture, and more.