As the world grapples with the COVID-19 pandemic, nations face a daunting task to re-build their economies in addition to handling a global health crisis. Businesses have been hit hard and the effects have been felt by the stakeholders. The road ahead is indeed fraught with challenges and calls for a change from business as usual to risk-resilient businesses of tomorrow.
Managing all stakeholders has been the biggest challenge for businesses in this ongoing time of uncertainty which is proof that economic health cannot be built in isolation. Society and environment are equally important for businesses to flourish and going ahead all the Environmental, Social, and Corporate Governance (ESG) risks will have to be managed to build resilience into the system. As we re-examine the future of work and travel, we can choose to build an improved economic system that works for both people and the planet. No sector is better placed to drive this transition to a sustainable economy and a stable future than the finance sector itself.
ESG integration in the financial sector will pave a path for all stakeholders being considered in the decision-making process, which will result in real world impact benefiting everyone. This paper talks about the changing financial landscape from an ESG lens. It discusses the drivers which have made it an imperative for all stakeholder groups, from investors to asset managers, to consider ESG factors in investing and analysis process. As we transition into the last decade of action for achieving the Sustainable Development Goals, it’s time we take actions that bring in resilience into the system.