ESG Summit | 3rd - 4th August 2022 | Sheraton Grand Sydney Hyde Park, Sydney, Australia

OVERVIEW

ESG (Environmental, Social, Governance) has become a game changer for many companies as the world of business pivots towards sustainability. The focus has heavily shifted towards the more sustainable, more long-term-oriented version of value creation. The stock markets and investors have proven this by the fact that $649 billion was invested in ESG-focused funds globally through the end of November 2021, already up from the $542 billion invested in 2020 and $285 billion in 2019; ESG funds currently make up 10% of all global funds, the latest Refinitiv Lipper data shows. Bloomberg notes further that the MSCI World ESG Leaders’ index has risen 22%, compared with the MSCI World Index’s gain of 15%.

Moving down under, the ESG megatrend continues to build in Australia due to increasing stakeholder expectations and legislative developments. Companies failing to meet corporate governance expectations may find it increasingly difficult to access capital. As reported by Allens and Linklaters, Australia’s ‘big four’ banks have committed to exiting thermal coal by 2030. The Net-Zero Banking Alliance, a group committed to net-zero investment portfolios by 2050, has also recently garnered its first Australian banking signatories. It is no surprise then that assets in ESG ETFs, mutual funds, private funds and institutional mandates are expected to reach US$30 trillion by the end of the decade, according to InvestorDaily.