Some major trends we may anticipate for the year.
The growth of ESG data quality and analytics
As reporting requirements become more stringent, investors are placing greater emphasis on the quality of data being reported. This means that accurate and reliable data can maintain investor confidence.
The Impact of ESG Factors on Supply Chains
To protect themselves from future disruptions, businesses are looking for suppliers that have strong ESG policies in place. These policies can help to mitigate the risks associated with supply chain disruptions, as well as improve the overall sustainability of the supply chain.
The rise of digital reporting
With the advent of new technologies, companies are increasingly able to collect and report data on their environmental, social, and governance performance. This data can then be used by investors to make more informed decisions about where to allocate their capital.
The financial sector will continue to recognize the importance of ESG investing
The last decade has seen a fundamental shift in the way the financial sector approaches investments. In the past, financial institutions focused primarily on generating short-term profits for their clients. However, in recent years, there has been a growing recognition of the need to take a long-term view and incorporate ESG considerations into investment decision-making.
The proliferation of climate-related risk
As the effects of climate change become more severe, businesses will be increasingly exposed to risks such as extreme weather events, water shortages, and crop failures. To protect themselves from these risks, businesses will need to incorporate climate-related risks into their decision-making processes.
Working from home becomes the new “Net Zero”
Working from home has become the new normal for many people, and this trend is likely to continue even after the pandemic has ended. Not only does it save on office space and travel emissions, but it also offers a host of other benefits, such as increased productivity and improved work-life balance.