Key Trends That Will Drive ESG This Year”

Key Trends That Will Drive ESG This Year”

ESG reporting will become more standardized

As ESG reporting becomes more mainstream, investors and regulators will demand greater transparency and uniformity in the way companies report their environmental, social, and governance performance. This year, we expect to see more companies adopting standardized ESG reporting frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD) or the Sustainability Accounting Standards Board (SASB).

Companies will focus on stakeholder engagement

With increasing pressure from investors and other stakeholders to address ESG issues, companies will place greater emphasis on engaging with these groups to understand their expectations and concerns. In particular, we expect to see more companies holding “virtual roadshows” to give stakeholders around the world the opportunity to learn about their ESG strategy and ask questions.

ESG integration will become more widespread

As investors become increasingly interested in ESG factors, we expect to see them incorporating these considerations into their investment decisions. This trend is already underway, with a growing number of asset managers offering ESG-themed strategies and indexes. In addition, more companies will adopt ESG-related risk management frameworks to help identify and mitigate potential ESG-related risks and opportunities.