As the big UN Climate Conference known as COP27 wraps up in Egypt, a new PwC report found that Investors globally are embracing Environment, Social and Governance (ESG) investing on a massive scale – “seen soaring 84%” to $33.9 trillion by 2026 but what does that mean? That’s a whopping 21.5% of total assets under management, or more than $1 for every $5 invested.
But so what? Is this a temporary trend? What does it mean exactly?
It could mean that ESG is finally having a profound effect across the economy, incentivizing the transition to clean energy, resilient infrastructure and social equity. But well, it’s complicated.
Investors – and the public – are demanding more transparency, disclosures and socially responsible leadership from companies. That’s why the U.S. Securities and Exchange Commission (SEC) is finalizing its climate risk disclosure rules, and why the European Union issued its benchmarks and disclosures.ESG Investing Is ‘Soaring.’ What Does It Mean?