In the past few years there has been a healthy and positive shift in public consciousness towards environmental, social and governance issues, driven by a number of factors, chief among them: social media.
These shifts have prompted investors in key markets – Europe, the US, the UK and Australia, among others – to ask questions of the companies they invest in and the businesses that manage those investment activities.
Add in high levels of liquidity and discretion on the part of these investors, and you spur competitive pressure among corporates and investment managers.
Throw in a regulatory domain that is seeking to keep pace with these changing requirements – and the potential risks it presents – and the operating environment becomes even more complex. And this is before you consider the complexity that current geopolitical tensions generate for all these stakeholders.
The result is great tension in the system.
Importantly, the players in this system tend to move at different speeds. Large, public companies need time to address systemic questions around sustainability and resilience, to allocate the necessary human, technological and financial resources to drive those strategic choices, while also retaining profitability.