South African and Brazilian companies have been identified for their progress on integrating environmental, social and corporate governance (ESG) disclosure by global institutional investors.

The Emerging Markets Disclosure Project (EMDP) survey found Brazilian and South African firms had made the greatest progress because both countries had developed a sustainability index that listed companies can aspire to be a member of by improving disclosure.

The survey also found Brazil attracted the most amount investments. Brazil's oil giant Petrobras topped the list of individual company holdings followed by Samsung Electronics in South Korea, China Mobile and Taiwan Semiconductor.

While Brazil and South Africa were identified for their good work on ESG, survey participants said the biggest challenge of investing in emerging markets is still a lack of corporate disclosure on ESG issues.

Many survey respondents said improving disclosure could lead to greater investment in emerging market countries by responsible investors.

Indeed, Lauren Compere, senior vice president of Boston Common Asset Management and the EMDP's Korean country team leader, said the firm would like to increase the firm's investment in emerging markets.

"We are encouraged by the initiative taken by some of our emerging market holdings including Samsung Electronics and Posco to increase their level of ESG reporting," said Compere.

"We hope the survey findings will help articulate the need for better ESG disclosure by a broader set of emerging market companies."