ISS ESG the responsible investment arm of Institutional Shareholder Services Inc released a report identifying the key global trends responsible investors will be focusing during 2022.
The key global themes and trends for ESG investors in 2022 cover topics included under three interrelated areas:
- Looming Water Crisis: Institutional investors can mitigate water risks across their investment portfolio by identifying industries and business activities that depend on or greatly impact water resources, and actively engage in management decisions to reduce negative impacts.
- Biodiversity loss: Food producers (mostly through their raw materials supply chains), hydropower dam operators, pesticide manufacturers, mining and construction companies, are frequently involved in allegations associated with biodiversity depletion.
- ESG data integration into the investment process: main challenge to put ESG into the mainstream of the investment process.
- Climate Litigation: Number of climate litigations has grown considerably (1,550 cases in 2020 vs the total 884 cases until 2017).
- Responsible investment regulation: Compliance with regulation that is gaining relevance in all geographies.
- Gender pay Gap: Investors will ensure that this indicator improves for female employees.
- Labor and Supply Chain: global working conditions across the value chain will be in the spotlight.
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According to Kristalina Georgeva IMF Managing Director, lifting growth requires three things: one, regulatory housecleaning to unleash private enterprise; two, deeper regional integration; and three, preparedness to harness AI.
According to The European House – Ambrosetti, the European Union has an opportunity to boost competitiveness and growth by simplifying regulatory and supervisory frameworks, particularly in the areas of sustainability and the financial sector.
According to Ramón Casilda Béjar, Spain, in today’s complex geopolitical landscape, has the opportunity to strengthen its role as a bridge and connecting country between Ibero-America and the European Union, revitalizing investment flows in both directions.
According to @ECB, in moments of acute stress, the public often turns to physical currency as a reliable store of value and a resilient means of payment, underscoring the crucial role it plays above and beyond everyday transactional convenience
According to Juan S. Mora-Sanguinetti, in Spain a 10% increase in regulatory volume leads to a 0.5% drop in employment in companies with fewer than 10 employees.
According to Hélène Rey “In a world where stablecoins, particularly those pegged to the dollar, become an important global payment tool, we must brace ourselves for substantial consequences”.
@judith_arnal proposes reforms for the EU to advance regulatory simplification, starting with consensus on its meaning, with competitiveness as a pillar, plus coordination mechanisms and a governance rethink.
According to @iee_org, Spain has one of the most demanding tax environments for businesses within the European and international context, which may have significant implications for competitiveness, foreign investment attraction, and business expansion.
According to Christine Lagarde for the euro to gain in status, Europe must take decisive steps by completing the single market, reducing regulatory burdens and building a robust capital markets union.
According to the Bank of Spain, in a context of strong growth in transactions and prices, the conditions under which new mortgage loans are granted currently show no signs of easing in lending standards.
McKinsey notes that European private capital is half the size of the U.S. and must play a key role in boosting competitiveness, by driving innovation, scaling firms, and mobilizing the investment needed to close the gap with other regions.
IMF states that global financial stability risks have grown significantly, driven by tighter financial conditions and heightened trade and geopolitical uncertainty.