Among the most important considerations for a growing number of investors who may be considering small- and mid-cap emerging market stocks are those companies’ environmental, social, and governance practices, says Heidi Heikenfeld, CFA, portfolio manager of OppenheimerFunds’ Emerging Markets Innovators strategy. That’s why Heidi and her team evaluate investment opportunities partially through an ESG lens.

According to Heidi, it’s not enough for a company to comply with ESG standards; all the companies in its supply chain also must follow accepted ESG principles. She says she won’t invest in companies that exploit people or whose profits are bolstered by cheaper labor costs than its competitors.

In the accompanying videos, Heidi discusses the importance of ESG and how it factors into her investment process in more as well as her approach to risk management.

For additional insights, please visit our Perspectives on Emerging Markets collection.

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