Events & News

There is no doubt the investment industry is changing. Over the past few years, private markets and passive strategies have grown rapidly. New asset classes, including green bonds and natural capital, have emerged. Regulation has shifted. And ESG and sustainable finance have come under greater global scrutiny. In the US, political actors have shown a willingness to use litigation to interfere in markets and prop up industries such as fossil fuels. That has created compliance uncertainty in some states, constrained collective engagement, and somewhat disincentivised the setting of formal ESG commitments.

The actions of investors today will be key to avoiding the catastrophic consequences that the adoption of AI may have for investee companies, as well as our society, environment and economy. In the short term, businesses that fail to put in place adequate governance safeguards around the design and deployment of AI risk financial consequences, reputational damage, operational disruption, legal risk, environmental risk, human rights risks and challenges to social licence.

Extreme weather and global events provide a glimpse into the risks facing companies today, and how they can position for the long-term in a changing world.