#ESG Risks

[uires]

Navegue pela Gestão de Riscos: Uma viagem de Paraty a Nazaré que revela ...

[financia012]

The Best Investment Opportunities for 2025: How to Build Wealth in the New Financial Landscape

Introduction:As we move into 2025, the financial world is rapidly evolving, presenting new challenges and opportunities for investors. Whether you’re planning for retirement, saving for a major purchase, or simply looking to grow your wealth, understanding the best investment opportunities in 2025 is key. In this article, we’ll explore the top trends and strategies that are likely to define the…

[regulatoryrisks]

Unlocking ESG in Real Estate: A Guide for Commercial Investors

Discover the importance of ESG in real estate investment. Learn how integrating environmental, social, and governance principles can enhance long-term value and drive sustainable growth.

[elsa16744]

Navigating the Future of ESG Investments While Balancing Risk and Responsibility

ESG factors enable organizations to position themselves as a pivotal part of the modern business landscape and investment strategies. Read More: https://www.sganalytics.com/blog/future-of-ESG-investments-while-balancing-risk-and-responsibility/

[scottbiffin]

Investment Strategies for a Changing Market: Insights for 2024 and Beyond

As we venture into 2024, the global investment landscape is marked by rapid technological advancements, evolving geopolitical dynamics, and shifting economic paradigms. The post-pandemic recovery, inflationary pressures, interest rate fluctuations, and the ongoing digital revolution are shaping the financial markets in unprecedented ways. For investors, this dynamic environment presents both challenges and opportunities. To navigate this changing market successfully, it is crucial to adopt adaptable and forward-thinking investment strategies. In this blog post, we will explore key insights and strategies that can help investors thrive in 2024 and beyond.

1. Diversification: The Cornerstone of Risk Management

Diversification remains a fundamental principle of sound investing, particularly in an uncertain market environment. By spreading investments across different asset classes, sectors, and geographic regions, investors can reduce their exposure to specific risks and enhance the stability of their portfolios.

a. Asset Class Diversification

In 2024, traditional asset classes such as equities, bonds, and real estate continue to play a crucial role in portfolio construction. However, the inclusion of alternative investments—such as commodities, private equity, and cryptocurrencies—can provide additional diversification benefits. Commodities, for instance, often perform well during inflationary periods, while private equity offers exposure to high-growth companies not available in public markets. Cryptocurrencies, despite their volatility, can offer high returns and serve as a hedge against traditional financial systems.

b. Geographic Diversification

Globalization has made it easier for investors to access markets worldwide. In the current economic climate, emerging markets in Asia, Latin America, and Africa offer attractive growth prospects. These regions are experiencing rapid economic development, driven by demographic trends, technological adoption, and increasing consumer demand. By investing in these markets, investors can tap into high-growth opportunities while mitigating the risks associated with any single economy.

c. Sector Diversification

The economic landscape is constantly evolving, and different sectors perform differently depending on the macroeconomic environment. For instance, technology and healthcare sectors have shown resilience during economic downturns, while energy and industrial sectors tend to perform well during periods of economic expansion. In 2024, sectors like renewable energy, biotechnology, and cybersecurity are expected to experience significant growth, driven by technological advancements and societal shifts. By diversifying across sectors, investors can capture growth opportunities while managing sector-specific risks.

2. Embracing Technological Innovation

Technological innovation continues to be a major driver of economic growth and market performance. The rise of artificial intelligence, automation, blockchain, and the Internet of Things (IoT) is transforming industries and creating new investment opportunities.

a. Investing in Tech Giants and Innovators

Tech giants such as Apple, Amazon, Google, and Microsoft have become integral to the global economy, and their dominance is expected to continue in 2024. These companies are leaders in innovation, with extensive research and development capabilities that enable them to stay ahead of competitors. In addition to these established players, investors should also consider smaller, high-growth companies at the forefront of technological advancements. Startups in fields like artificial intelligence, biotechnology, and clean energy offer significant growth potential, albeit with higher risk.

b. Leveraging Fintech and Digital Finance

The financial industry is undergoing a digital transformation, driven by fintech innovations such as digital payments, robo-advisors, and blockchain technology. These innovations are making financial services more accessible, efficient, and secure. In 2024, fintech companies are likely to continue disrupting traditional financial institutions, offering investors lucrative opportunities. Additionally, the rise of decentralized finance (DeFi) platforms, which use blockchain technology to offer financial services without intermediaries, presents new avenues for investment.

c. Capitalizing on the Metaverse and Virtual Reality

The concept of the metaverse—a virtual world where people interact, work, and play—is gaining traction, with major companies investing heavily in its development. Virtual reality (VR) and augmented reality (AR) technologies are expected to play a crucial role in the metaverse, creating new investment opportunities in entertainment, gaming, real estate, and even digital art. While still in its early stages, the metaverse represents a long-term growth area for investors willing to take on higher risk for potentially high rewards.

3. Sustainable and Impact Investing

As concerns about climate change, social inequality, and corporate governance continue to grow, sustainable and impact investing is becoming increasingly important. Environmental, Social, and Governance (ESG) factors are now integral to the investment decision-making process for many investors.

a. Integrating ESG Criteria

In 2024, companies that prioritize sustainability and ethical practices are expected to outperform their peers, as consumers, regulators, and investors demand greater accountability. By integrating ESG criteria into their investment strategies, investors can identify companies that are well-positioned for long-term success. For instance, companies with strong environmental practices may be better prepared to navigate regulatory changes related to climate change, while those with good governance structures are likely to manage risks more effectively.

b. Focusing on Green Energy and Climate Solutions

The transition to a low-carbon economy is accelerating, driven by government policies, technological advancements, and changing consumer preferences. Investments in renewable energy, energy efficiency, and clean technologies are expected to see significant growth in 2024 and beyond. Companies involved in the production of solar, wind, and hydrogen energy, as well as those developing electric vehicles and energy storage solutions, offer compelling investment opportunities. Additionally, investors should consider companies that are working to mitigate climate risks, such as those involved in carbon capture and climate resilience projects.

c. Supporting Social Impact Initiatives

Impact investing, which seeks to generate positive social and environmental outcomes alongside financial returns, is gaining traction among investors. In 2024, areas such as affordable housing, education, healthcare, and sustainable agriculture are expected to attract significant investment. By supporting companies and projects that address pressing social challenges, investors can contribute to societal progress while achieving financial returns.

4. Adapting to Economic and Geopolitical Shifts

The global economy is constantly influenced by a range of factors, including inflation, interest rates, fiscal policies, and geopolitical events. To succeed in this environment, investors must be agile and responsive to changing conditions.

a. Navigating Inflation and Interest Rate Risks

Inflationary pressures and interest rate hikes are expected to continue in 2024, presenting challenges for fixed-income investments and consumer spending. To mitigate these risks, investors should consider inflation-linked bonds, real assets such as real estate and commodities, and dividend-paying stocks. Additionally, floating-rate bonds, which adjust their interest payments based on changes in interest rates, can offer protection against rising rates.

b. Monitoring Geopolitical Developments

Geopolitical events, such as trade tensions, conflicts, and regulatory changes, can have significant impacts on financial markets. In 2024, investors should closely monitor developments in major economies such as the United States, China, and the European Union. Trade relations, especially between the U.S. and China, will continue to influence global supply chains and market sentiment. Additionally, political instability in emerging markets could create both risks and opportunities for investors. To manage geopolitical risks, investors should consider diversifying their portfolios across regions and sectors, as well as staying informed about global events.

c. Hedging with Safe-Haven Assets

In times of economic uncertainty, safe-haven assets such as gold, government bonds, and the U.S. dollar tend to perform well. These assets provide stability and protection against market downturns. In 2024, gold is expected to remain a popular hedge against inflation and currency devaluation. Similarly, U.S. Treasuries and other high-quality government bonds can offer safety and income in a volatile market. Investors should consider allocating a portion of their portfolios to these safe-haven assets to balance risk and reward.

5. Active vs. Passive Investing: Striking the Right Balance

The debate between active and passive investing continues to be relevant in 2024. While passive investing, through index funds and ETFs, offers low-cost exposure to broad markets, active investing allows for more targeted strategies and the potential for higher returns.

a. Benefits of Passive Investing

Passive investing is a popular strategy for its simplicity, low costs, and consistent performance. By tracking market indexes, passive funds provide broad diversification and reduce the risk of underperforming the market. In a changing market, where predicting short-term movements can be challenging, passive investing offers a reliable way to capture overall market growth. For long-term investors, a core portfolio of passive funds can provide steady returns with minimal effort.

b. Opportunities in Active Investing

Active investing, on the other hand, involves selecting individual stocks, bonds, or funds based on research and market analysis. In a rapidly changing market, active managers can capitalize on opportunities and avoid potential pitfalls that passive funds might miss. For instance, active investors can target undervalued companies, emerging sectors, or regions with strong growth potential. Additionally, active strategies can be tailored to specific investment goals, such as income generation or capital preservation.

c. Combining Active and Passive Approaches

For many investors, a combination of active and passive strategies offers the best of both worlds. By maintaining a core portfolio of passive investments and supplementing it with active strategies, investors can achieve diversification, reduce costs, and enhance returns. For example, an investor might use index funds to gain broad market exposure while actively selecting individual stocks in high-growth sectors or emerging markets. This balanced approach allows investors to adapt to changing market conditions while staying aligned with their long-term objectives.

6. Long-Term Perspective: Staying Focused on Goals

Amidst market fluctuations and economic uncertainty, it is essential for investors to maintain a long-term perspective. Short-term market movements can be unpredictable, and reacting to them impulsively can lead to suboptimal investment decisions.

a. Staying Disciplined During Market Volatility

Market volatility is inevitable, especially in a rapidly changing environment. Investors should avoid making emotional decisions based on short-term market movements. Instead, they should stay disciplined and focused on their long-term investment goals. A well-diversified portfolio, aligned with the investor’s risk tolerance and time horizon, can help weather market turbulence and achieve steady growth over time.

b. Regular Portfolio Review and Rebalancing

Regularly reviewing and rebalancing the portfolio is crucial to ensure that it remains aligned with the investor’s goals and risk tolerance. Market changes can cause the portfolio’s asset allocation to drift away from its target mix. Rebalancing involves selling overperforming assets and buying underperforming ones to restore the desired allocation. This disciplined approach helps manage risk and keeps the portfolio on track to achieve long-term objectives.

c. Adapting to Life Changes

Investors’ financial goals and risk tolerance can change over time due to life events such as retirement, marriage, or the birth of a child. It is important to adapt the investment strategy to reflect these changes. For example, as investors approach retirement, they may want to shift towards more conservative investments to preserve capital and generate income. Conversely, younger investors with a longer time horizon may opt for more aggressive growth strategies. By regularly reassessing their investment goals and adjusting their strategies accordingly, investors can stay aligned with their evolving needs.

As we navigate the complexities of 2024 and beyond, the investment landscape will continue to evolve, presenting both challenges and opportunities. By adopting a diversified, forward-thinking approach, embracing technological innovations, integrating ESG criteria, and staying responsive to economic and geopolitical shifts, investors can position themselves for success in a changing market. Whether through active or passive strategies, the key to long-term success lies in maintaining a disciplined, goal-oriented approach and staying focused on the big picture. With the right strategies in place, investors can confidently navigate the uncertainties of 2024 and beyond, achieving their financial objectives while seizing new opportunities in the ever-changing world of investing.

[ethicsindia]

Compliance Training in India

Looking for top compliance training in India? The Certified Compliance and Ethics Professional Course (CEPC), offered by EthicsIndia, is designed to equip Compliance & Ethics professionals with the knowledge, skills and hands-on experience required to build a sustainable culture of compliance and ethics within their organizations.

This CEPC training program includes essential topics such as: 1. Introduction to Compliance and Ethics 2. Organizational Ethics 3. Imbibing a Compliance Culture 4. Third Party Risk Management 5. Anti-Bribery & Anti-Corruption 6. Fraud Risk Mitigation, Investigation and Management 7. Data Privacy, Cyber Security & General Data Protection Regulation (GDPR) 8. Environmental, Social and Governance Practices (ESG) 9. Corporate Governance

For those seeking compliance training in India, this course offers a comprehensive solution to enhance your professional expertise and drive organizational success.

[robsonescobar]

Pessoal, segurança do trabalho é algo muito muito sério. Você já viu 1 capacete? e 2 capacetes? E 12.000 capacetes??? Pois este foi o número de acidentes de trabalho que ocorreram no último ano envolvendo a cabeça de alguém. Veja mais... https://www.linkedin.com/posts/robsonescobar_sst-seguranaexanotrabalho-nr-activity-7191898138754895872-UEdk?utm_source=share&utm_medium=member_desktop

[anilmenon]

Best Project-Based ESG Risk Scoring Tool | Supplier Diversity ROI

Best Project-Based ESG Risk Scoring Tool powered by LOCOMeX for tracking business's Sustainability, ESG. To know more Visit Us: https://bit.ly/3P9J3Bq

[ardhasneoehs]

Minimize Environmental Impact with NeoEHS EHS Management Systems for Waste

Searching for ways to decrease ecological footprint? NeoEHS EHS Management Systems deliver detailed waste generation profiles, facilitating targeted reductions and recycling initiatives. Make greener choices confidently with NeoEHS - book a demo! https://www.neoehs.com/solutions/waste-management-software

[ennovance]

…how investors are underpricing climate risks

https://www.ft.com/content/899472a8-e5e2-4fde-bc91-7e548ba35294 @ft #investor #riskmanagement #esg

[faultfalha]

The court of the United Kingdom's decision was a shock, and it seemed to herald a new age of uncertainty and dismay. Its verdict was tucked away neatly between the grey stone facades of the courts, as if it had never been uttered aloud. On the surface, justice seemed to have been served, but those who kept vigil in the heart of darkness knew that something else was brewing. The sky was afire with seething, terrible clouds, as if stormy days had been left behind in favour of unruly nights. The wind howled down the empty streets, carrying with it the faint echo of a distant thunder. In its passing, the air held an ancient promise - a warning of the consequences of that judgement, a reminder of the uphill battle yet to be faced. The fear ran deep, yet the truth remained the same - the cause was far from lost, and the fight for justice would rage on regardless. Its flames might have been snuffed that day, but like the Phoenix, they would rise from the ashes, and be just as bright.

[educationisimp0]

Understanding the Sustainable Finance Disclosure Regulation (SFDR) of the EU 

The European Union (EU) has joined the net-zero movement to introduce financial disclosure standards through the NFRD and the CSRD because it takes sustainability and climate change seriously. The Sustainable Financing Disclosure Regulation, or SFDR, was introduced by the European Union in 2021 to highlight sustainable financing in the EU. Financial institutions must disclose their PAI, including greenhouse gas emissions, biodiversity, waste management, and human rights, to adhere to the SFDR framework. PAI disclosures are becoming increasingly crucial, and companies that don't disclose or don't comply with the fundamental criteria could suffer multifaceted short- and long-term implications.

[regulatoryrisks]

ESG in Real Estate: Key Insights for Responsible Investment Strategies

Discover the importance of ESG in real estate investment. This guide explores key ESG factors, strategies for sustainability, and governance for responsible investors. Go here https://ezine-articles.com/esg-in-real-estate-key-insights-for-responsible-investment-strategies/

[elsa16744]

Cyber Security Risks: Exploring the Data Trends through the Lens of ESG Experts

Cybersecurity risk stands as a top threat to organizational growth—risk consumers and investors are slowly learning to take more seriously by the day.

[esglatestmarketnews]

Why Cyber Security Companies Need to Prioritize ESG Practices

An uptake in high-profile data breaches and the exponential rise in digitization have redefined the dynamics in the cybersecurity industry. Stakeholders have become cagey towards data management practices and cybersecurity vulnerabilities. Lately, companies have started reporting on environmental, social and governance (ESG) performance, largely spurred by public opinion, regulatory requirements and soaring demand from stakeholders. ESG-focused businesses and organizational practices are expected to gain ground to maintain and achieve cyber resilience. With sectors such as fintech companies, oil and gas, financial services, public utilities and retail under immense pressure from the board of directors, investors and other stakeholders to be more transparent, industry players are expected to bank on sustainability. 

Incorporating factors beyond financial into assessments of company performance have become paramount amidst a surge in cyberattacks. For instance, in November 2022, Microsoft reportedly blamed a Russian GRU hacking group for cyberattacks on transportation and other logistics industries in Poland and Ukraine. Moreover, surging cybercrime costs, such as lost productivity, destruction and damage of data, intellectual property theft, post-attack disruption, fraud, embezzlement and stolen money, have compelled stakeholders to rethink their strategies. Cybersecurity Ventures states global cybercrime costs could touch USD 10.5 trillion annually by 2025. World Economic Forum’s Global Risks Perception Survey 2021-2022 listed environmental risks as the five most critical long-term threats. 

Notably, stakeholders are likely to foster ESG reporting practices to bolster transparency as cyber resilience has become a force to reckon with to augment sustainable earnings. Potential stakeholders envisage a sustainability portfolio as the top agenda amidst issues, including climate change and anti-corruption. Industry players are slated to keep ESG goals at the forefront for an expedition of inclusion, fairness and equitable access to opportunities and ensuring a regenerative and sustainable future.

Key Companies in this theme

    • Cisco Systems, Inc.

    • Palo Alto Networks

    • McAfee, Inc

    • Broadcom,

    • Trend Micro Inc

Cisco Emphasizes Environmental Stewardship to Tap into the Growth Potentials

Cybersecurity firms have reinforced their position in the global landscape with an increased focus on the ESG pillars. Notably, environmental stewardship has come to the fore to steer the protection and responsible use of the natural environment sustainably. For instance, Cisco is guided by its corporate Environmental Policy and ISO 14001 Environmental Management System (EMS). The company had 30 sites with ISO 14001 certification in the fiscal year 2021. In April 2021, Cisco announced it would be infusing USD 100 million to address the climate crisis and help reverse the climate change impact over ten years. 

Furthermore, in the fiscal year 2022, it rolled out the Environmental Sustainability Specialization (ESS) to help channel partners promote product takeback, educate customers, boost their sustainability practices and move to circular business models. During the same period, the company came up with Cisco Green Pay to assist customers in building an environmentally friendly technology strategy to attain ESG goals. It has also furthered its investments in state-of-the-art technology to help users leverage grid decarbonization, monitor grid reliability, water and transportation systems and bolster the workplace. The U.S.-based company remained instrumental in leveraging employees to work from home with AnyConnect VPN, WebEx by Cisco and TelePresence. 

Social Performance Gains Ground with McAfee Propelling ESG Profile

With cybercrime-as-a-service becoming pervasive, cybersecurity has become an invaluable part of the ESG for companies, regulators, investors and consumers. The high number of incidents has propelled the need for optimized security operations and a strong social pillar. For instance, Fortinet is gearing to train 1 million people in cybersecurity by 2026. It cashed in on advanced technologies, such as machine learning (ML), artificial intelligence (AI) and deep learning to propel the design and growth of cybersecurity solutions and services.

In addition, pay parity has garnered headlines amidst growing women’s participation in the corporate world and surging role in the global economy. To illustrate, in April 2022, McAfee celebrated three years of maintaining pay parity and claimed to be the first cybersecurity company to attain the policy. Besides, the representation of women was pegged at around 30.9% in 2021, up from 27.6% in the preceding year. The company has also upped its focus on diversity as 16.3% of new hires in the U.S. were underrepresented professionals (Black, American Indian, Hispanic / Latinx, multiracial and Pacific Islande) in 2021.

Companies have fueled their efforts to set audacious goals to communicate the company’s development transparently, boost women’s participation and design long-term sustainable programs that address social impact. To illustrate, around 31% of external hires for VP and above positions in Palo Alto Networks identify themselves as women. Besides, 78% of leadership teams have diverse representation and the company aims for 100% diversity by 2025. The company also bolstered safety in a hybrid work environment. In July 2022, Palo Alto Networks underpinned its Global Security and Safety team by hiring a Senior Global Environmental Health & Safety Manager. It has also underscored its position in the human rights field with “industry best practices” to analyze risks for cases of human rights violations in the supply chain.

Broadcom Fosters Governance Portfolio 

Well-established companies are gearing to propel their ESG performance with a bullish approach toward governance policies. Stakeholders, stockholders and employees are expected to focus on the corporate governance framework for accountability and transparency. Prominently, in February 2021, Broadcom adopted the name Nominating, Environmental, Social and Governance Committee (NESG Committee), doing away with the term “Nominating and Corporate Governance Committee.” The company found in its 2021 Employee Ethical Culture Survey that 96.1% of employees were acquainted with the efforts of the compliance and ethics function.

It also expedited compliance training as it noted that more than 99% of its employees completed the course in 2021. During this period, it rolled out the Global Compliance Ambassador program to solidify compliance culture. In essence, the U.S.-based company listed corporate governance, cybersecurity and data privacy, ethics and integrity and product quality in its 2021 ESG priorities.  

Is your business one of participants of the global cyber security industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices.

Key players are leaving to stone unturned to underscore social responsibilities and provide avenues of growth to stakeholders. In doing so, the Board of Directors at Fortinet established the Social Responsibility Committee to introduce the highest level of governance in CSR issues. The company uses corporate governance practices to ensure compliance with all laws and do business ethically. Besides, there has been a surge in independent directors across industry verticals as companies vie to enhance their sustainability portfolio. To illustrate, around 75% of board directors are independent at Palo Alto Networks, while approximately 50% of BoD are diverse with different race, gender, nationality or ethnicity. In the fiscal year 2022, the company established a Security Committee of the Board to boost oversight about security issues, such as cybersecurity.

The competitive landscape alludes to an increased focus on cybersecurity leaders emphasizing innovations and technological advancements. Forward-looking companies and governments are poised to foster their ESG practices to keep abreast with the trend. In October 2022, the Cybersecurity & Infrastructure Security Agency (CISA) joined forces with the National Institute of Standards and Technology and the interagency community to release cross-sector Cybersecurity Performance Goals (CPGs). Meanwhile, in 2021, Fortinet has a dedicated Human Rights Policy to propel ethical business and responsible product use.

About Astra – ESG Solutions By Grand View Research

Astra is the Environmental, Social, and Governance (ESG) arm of Grand View Research Inc. – a global market research publishing & management consulting firm.

Astra offers comprehensive ESG thematic assessment & scores across diverse impact & socially responsible investment topics, including both public and private companies along with intuitive dashboards. Our ESG solutions are powered by robust fundamental & alternative information. Astra specializes in consulting services that equip corporates and the investment community with the in-depth ESG research and actionable insight they need to support their bottom lines and their values. We have supported our clients across diverse ESG consulting projects & advisory services, including climate strategies & assessment, ESG benchmarking, stakeholder engagement programs, active ownership, developing ESG investment strategies, ESG data services, build corporate sustainability reports. Astra team includes a pool of industry experts and ESG enthusiasts who possess extensive end-end ESG research and consulting experience at a global level.

For more ESG Thematic reports, please visit Astra ESG Solutions, powered by Grand View Research