Worst nations for governance have the world's best stock markets

Altruism has proven a lousy guide for stock pickers this year.
 

Investors who avoided the dodgiest countries in terms of environmental, social and governance standards would have missed out on huge returns. In Qatar, stocks soared 27 per cent in dollar terms to lead gains despite the worst ESG (environmental, social and governance) score in emerging markets, according to an analysis by Renaissance Capital. The most lucrative developed markets have been Israel, which has the lowest Renaissance ESG score in absolute terms, and the US, lowest when adjusted per capita.