DPAM: Country Sustainability Rankings

DPAM has updated its country sustainability rankings for emerging countries and OECD member states, drawn from our proprietary country model. This edition of the reports focuses on India and the United States, two global powerhouses with distinct trajectories.

In this edition of the rankings, the United States slipped from 29th to 34th place among OECD member states, with a composite score of 53.2. This decline underscores enduring weaknesses in population health, wealth distribution and transparency and democratic values, despite the country's continued strength in education, innovation and certain environmental metrics.

In the population, healthcare and wealth distribution pillar of the ranking, health outcomes remain one of the United States' weakest performance areas, alongside governance indicators. Despite spending approximately 17% of GDP on healthcare, the highest share among OECD countries, the US records the sixth highest infant mortality and fifth highest maternal mortality rates in the group. These outcomes point to an inefficient system marked by fragmented insurance, lack of universal coverage and inequitable access to preventive and primary care. The US also ranks among the most unequal economies in the OECD, with a Gini coefficient of 0.418 and faces challenges in housing affordability.

In the transparency and democratic values pillar of the ranking, the United States was classed in the fourth quartile for transparency, institutional trust and democratic governance. Despite relatively strong constitutional foundations, public confidence in government and the media has weakened considerably. Press freedom has declined year on year, now reaching historic lows. The country ranks among the bottom ten within our OECD universe in terms of media freedom, amid challenges related to misinformation and increasing restrictions on the press. Recent events, such as the revocation of Pentagon access for major news outlets, have raised concerns about government transparency and the protection of First Amendment rights. Broader governance challenges extend to issues of inclusion and equal treatment, particularly affecting migrant workers and communities.

In the environmental pillar, the US' environmental ranking fell from 20th in the second semester of 2024 to 26th in the second semester of 2025, reflecting persistent challenges in policy coordination and implementation. While the country has made progress in decoupling environmental pressures from economic growth, recent policy reversals have weakened the institutional foundation for environmental justice. The dismantling of elements of the federal environmental justice framework and the rollback of climate initiatives has introduced uncertainty into the longer-term trajectory of US environmental progress.

For the education and innovation pillar, the US performed well. The country ranks among the top eight OECD members in tertiary education attainment and education expenditure. It continues to lead in global innovation, investing 3.6% of GDP in research and development. However, educational inequality and funding disparities persist, and recent immigration policy changes have introduced uncertainty for international students, who help to power the US’ innovation ecosystem.

India’s total ESG score has steadily increased, rising from 49/100 in the second half of 2023 to 57/100 in this ranking. This improvement means India now features in the third quartile among emerging market peers for the first time although significant challenges remain.

India’s environmental performance remains mixed. The country’s aggregate energy and emissions profile is shaped by continued reliance on coal, which accounts for about 46% of total energy supply. While India’s per-capita CO2 emissions are relatively low by global standards, it is now the third-largest emitter globally. On a positive note, India has tripled its renewable energy capacity over the past decade, with further growth needed to meet ambitious targets for 2030.

Within the population, healthcare and wealth distribution pillar of our model, India has made significant progress in improving demographic indicators, reducing unemployment, and narrowing income inequality. The overall unemployment rate has declined, and the country now ranks first among its peers for the inequality theme. The proportion of people living below the international extreme poverty line has fallen sharply and inequality has declined. However, these figures may understate persistent structural challenges, such as informal employment and regional disparities.

For the education pillar, India has seen gains in access and enrolment, with near-universal access to primary education and rising secondary and tertiary enrolment. However, learning outcomes and completion rates remain a concern, particularly beyond lower secondary education.

In terms of the transparency and democratic values pillar of our model, governance indicators present a more challenging picture compared to India’s economic and social progress. While the country upholds a vibrant democratic framework with regular elections and an active civil society, it continues to face notable governance shortcomings and pressures on fundamental freedoms. India remains outside several major international legal and disarmament frameworks, such as the Rome Statute of the International Criminal Court and the Treaty on the Non-Proliferation of Nuclear Weapons. Press freedom has also come under pressure, with India ranking 159th out of 180 countries in the 2024 World Press Freedom Index, reflecting structural and political challenges.

Since the 2008 sovereign debt crisis, countries are increasingly scrutinised from an ESG perspective and credit rating agencies now include climate change risk in their assessments. DPAM has been a pioneer in assessing country sustainability since the development of our model in 2007.

DPAM regards a sustainable country as one that is committed to fully ensuring the freedom of its citizens and which invests in their personal development and welfare. It respects the environment and is reliable in terms of international responsibilities and commitments. It ensures its future and invests in future generations.

While the design of DPAM’s model differs between OECD member states and emerging countries to reflect the different challenges faced, we strive to align models.

For both OECD and emerging countries the model is based on four key drivers of sustainability: transparency and democratic values, the environment, education and innovation and population, health and wealth distribution. Different criteria and indicators are chosen to represent these drivers.

Authoritarian and non-free countries are excluded from investment.

The model is dynamic and reviewed twice annually.

DPAM is a sustainable actor, investor and partner and we use these rankings to inform our investment approach. We engage with countries on how and why we develop the rankings.