KEY TAKEAWAYS

• 2022 will be marked by far-reaching regulatory developments and voluntary commitments in the finance sector.
• The current focus on Net Zero commitments will extend to include consideration of biodiversity risks.
• The market will see an ever-widening range of new ESG strategies and approaches, will broaden geographically and thematically, and see new participants helping to shape the ESG discourse.
• The banking sector’s role in financing solutions to climate change will be extended to ensuring that their loan books stand up to climate stress testing.
• Transparency will be key as more investors become active owners, both in the passive and actively managed space.
• Latin American and Asian markets will play an increasingly influential role in global responsible investment.
• ESG data and service providers will be more heavily scrutinized, and be called on to serve an increasingly diverse client base of financial market participants worldwide.