ESG is increasingly recognised as a strategy for risk mitigation and value creation. This was accelerated during the Covid-19 period: 79% of APAC investors reported significantly or
moderately increasing ESG investments in response to the pandemic by the third quarter of 2020, according to MSCI.
Nonetheless, a number of challenges remain. Key among these, there is no one-size-fits all approach: ESG risk exposure varies by organisation, as well as by market and industry. Within emerging markets in particular, it is paramount to balance environmental, social and governance concerns – adding another layer of complexity. Digital transformation and dedicated financing remain key for progress.