As investors are currently working their way through the recent market turmoil, in this paper Isio draw attention towards another important topic that is gaining increasing focus at this time. The recent rise in inflation has led to a cost of living crisis, in the wake of the COVID-19 pandemic that had already compounded rising inequalities. This is not the only social catalyst of late, from the female empowerment movement in Iran, to the ongoing Russian war in Ukraine and the Black Lives Matter movement, social events have been brought to the forefront of public and investor attention, but to date have received comparatively little attention in the investment community.
Following Isio's recent papers on
climate and
nature, their latest ESG research paper provides an overview of social risks and opportunities as the next frontier for investors, covering:
- The definitional frameworks investors can draw on to define and group social factors, such as the Department for Workplace and Pensions list of social issues, together with the Sustainable Development Goals (SDGs).
- Social risks as systemic risks for economies and financial markets, as seen in the wake of the COVID-19 pandemic. Isio highlight some of the social risks receiving increasing investor attention.
- Investor momentum, including under the Taskforce on Inequality-related Financial Disclosures (TIFD) developing inequality disclosure guidance for companies and investors, alongside a growing number of other social collaborative initiatives.
Learn more here
