Power amongst top sectors focused on ESG investments

Around 91% of executives in power companies expect ESG investments to rise.

The energy industry is amongst the top sectors tackling investments in ESG in 2022, GlobalData found.

In a report, GlobalData also found that discussions on investments are also high in industries, suh as financial services, oil and gas, and the pharmaceutical sector.

“Financial services companies mentioned ‘Climate’ the most in 2022 ESG filings, with discussions largely focusing on which invests can help prevent climate change and which partnerships could help their clientele address low-carbon initiatives,” Rinaldo Pereira, Business Fundamentals Analyst, GlobalData, said.

“How to reduce the impact of loans, investment offerings and insurance products on the climate were also points of discussion.”

This also affirmed GlobalData’s earlier findings in its ESG Strategy Survey 2021, which reported that 91% of executives in the energy sector expect investments in ESG to increase in the next five years. This is followed by oil and gas (88%), and pharma (82%).

“Financial services, power, oil & gas, and pharma are some of the highest exposed to ESG in terms of their business models and regulation, so it is good that they’re aware of the issue and talking about the importance of ESG,” Luke Gowland, Thematic Analyst at GlobalData, said.

“However, caution must be taken. I’d take everything these companies say about ESG in their filings with a pinch of salt, they may be using their filings as an opportunity to greenwash investors and the public, for example.”