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10 May 20222 minute read

Embracing the movement towards digital and ESG

Environmental, social, and governance (ESG) initiatives have come sharply into focus among many sectors, including financial institutions and regulatory bodies; insurance; the sale of consumer goods; the technology sector; and media, sports and entertainment. As governments seek to shape the country’s long-term response to COVID-19, greater focus and concern over ESG initiatives is emerging, placing the green economy at the heart of the post-pandemic recovery.

For example, a dramatic shift is occurring in regulation and standards-setting concerning ESG, especially for financial institutions. Prudent financial institutions recognize that climate change needs to be factored into their risk management and stress-testing frameworks. Additionally, with more people working remotely, the demand for digital financial services has increased, and financial institutions will likely need to significantly enhance their technology capabilities. This greater reliance on the internet results in institutional exposure to other vulnerabilities, such as those related to cyber attacks and data breaches.

One way for entities to implement ESG into their processes is to digitize more of their operations. For more information about how to do so, please see our Insight titled, “So you want to go digital.”