ISS ESG, the responsible investment arm of Institutional Shareholder Services Inc. (ISS), today released its annual global outlook report, Volatile Transitions – Navigating ESG in 2021, to kick off its ESG Themes and Trends 2021 thought-leadership series. Drawing on comprehensive ISS ESG data, analyst commentary, and qualitative research from the ISS ESG global database, the new report provides a year-long resource and roadmap for investors in global markets seeking to navigate the potentialities of diverse global and regional ESG issues and their impacts across various investment markets. For the first time, the Global report will be accompanied by locally-focused reports for the Americas, EMEA, Asia and Australia/New Zealand regions.
Bonnie Saynay, Managing Director, Global Head of ESG Research at ISS ESG said: “The Volatile Transitions – Navigating ESG in 2021 report series demonstrates how ISS ESG data and research intelligence continues to evolve to support investors in identifying dynamic material issues across their portfolios, as economies across the globe transition to a post-pandemic world.”
▪ The forecasted recession and ‘long ascent’ of global economic recovery after COVID19 will require strong commitment and decisive action from financial markets. Responsible investment entails both damage control and an altered scope of investment opportunity concerned with restoring stability.
▪ Magnified labor and human rights risks associated with manufacturing supply chain stoppages are at a high priority for investors globally.
▪ Outperformance of ESG-aligned investments during 2020 has primed the market for increased uptake of responsibly invested funds.
▪ Legislative and regulatory developments across several regions suggest an enhanced alignment with the Paris Agreement, fueling hopes for a ‘green recovery’ in several jurisdictions.
The report highlights how, with the impacts of the pandemic still looming over most economies, responsible investors face a balancing act of maintaining momentum on climate change action, whilst becoming instrumental actors in the recovery and redevelopment of localized economies.
In the process, a sea of ‘red flag’ issues across labor and human rights; biodiversity and resource scarcity; wealth disparity and income inequality; and governance and accountability, demand immediate attention and investor mobilization.
The report further highlights how ESG investors are in a prime position to utilize their reputations to garner greater mainstream buy-in towards sustainable business practice. As such, 2021 offers responsible investors an opportunity to truly live up to their potential, aiding in the delivery of a socially and environmentally sustainable global recovery.
Download a copy of the reports: