Published at Saturday, March 2, 2024 7:50 AM
ESG in 2024: promising investment opportunities, yet it demands a vigilant approach towards associated risks
Over the past decade, the interconnectedness of sustainability, social, and governance risks with financial risks has become evident. Companies are not eager to make expensive investments in terms of ESG. This has to do with the difficult terminology, definitions and labels that have not always been clearly articulated. Still, those hesitant to embark on the ESG journey may eventually face more substantial financial commitments.
Just last year there was massive talk about the sense and nonsense of ESG investments. ESG was even declared dead by some. But things are not going that fast. Whereas 2023 was all about keeping up and complying with changing European ESG legislation, 2024 is the year of innovation. Clearer articulation of investment objectives and higher quality information will convince both investors and companies of the benefits of good ESG policies. In the European Union, the first reporting round of the Sustainable Finance Disclosure Regulation (SFDR) already provided a steep learning curve last year. Time to dive into the ESG trends for 2024. As a company, what can you expect?
