Market Overview of ESG
With the demand for ethical and sustainable practices increasing among consumers and investors, the need for improved transparency and ESG reporting has also grown. Worldwide organizations have been meeting this demand, as shown by a recent report indicating 80% of companies disclose sustainability data to some degree. These organizations are reporting on the risk of biodiversity, climate risk and carbon reduction, and UN Sustainable Development Goals (SDGs). By reporting on these factors, organizations are taking responsibility. However, there is still room for improvement. Less than a quarter of at-risk companies worldwide report on biodiversity loss. Only 40% of organizations acknowledge the financial implications of climate change. And SDG reporting is often disconnected from business goals. Sustainability and ESG reporting have also seen significant growth with investing. The value of global assets related to ESG data increased to $40.5 trillion in 2020, triple the value it was eight years ago. Organizations are developing and reporting strategies centered around ESG themes to entice investors further and meet their demands for honest, sustainable practices. Not only are corporations creating these strategies, but they are also increasing their funding to support sustainable actions. The average amount of ESG funds worldwide is $250 million in AUM. Investors want to support organizations that prioritize sustainability and will critically examine their environmental, social, and governance reporting.
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REDEFINE THE JOURNEY
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