Finance
The single most critical driver of change, be it economic, social, ecological, or behavioral, is the flow of capital into projects and processes for a desired outcome. In this new era, there is no shortage of approaches that governments and others are taking to meet environmental, social, and economic challenges. The world has already made significant strides in sustainable development project and ESG investing. Companies are now navigating risks that could arise from changes to policies, laws, technology and capital markets as they transition to a lower-carbon economy and climate-resilient future.
Governments and regulatory bodies have already set benchmark requirements for investments, such as:
- Sustainable Finance Disclosure Regulation (SFDR) introduced by the European Commission
- NASDAQ's board diversity listing rule, to increase transparent reporting
- Global Reporting Initiative (GRI)
- Sustainability Accounting Standards Board (SASB)
- Task Force on Climate-Related Financial Disclosures (TCFD)
- Stakeholder Capital Metrics framework created by the International Business Council of the World Economic Forum (WEF) and more recently, draft guidance released by the International Sustainability Standards Board (ISSB) on sustainability and climate-related disclosures.
- The SEC has proposed amendments to Regulations S-K and S-X to require new climate-related risk disclosures by domestic and foreign issuers.
These initiatives are some of the many driving forces behind sustainable investing. The trickledown effect is that companies of all sizes across the world must comply in an effort to achieve the UNFCC sustainable development goals.
All companies in the financial services industry are currently compelled - or eventually will be compelled - to follow ESG regulations set by the SEC, or other global and national regulatory bodies in the near future. SOPTICS.AI is designed to keep you up to date with relevant emerging trends, using AI and Horizon Scanning techniques to help guide companies to full transparency and optimization of sustainability initiatives.
Environmental
- Invest in programs for cleaner and sustainable operations.
- Invest in research and development programs to transition out of fossil fuels and into renewable sources of energy
- Invest in the production of renewable energy
- Invest in green bonds, purchase carbon credits or trade carbon offsets with collaborating companies.
Social
- Ensure fair and equitable distribution of business opportunities.
- Fair and equitable employment, training, development, and retention of staff.
- Invest in companies, and programs that improve and empower the masses through education and skills training, health and wellness, and more.
Governance
- Invest in countries with democratic governments and human rights records
- Are operations equipped with ESG policy pathways?
- Is there a policy of disclosure?
