emerging
Impactful Institutions
Driven by consumer and investor demand, BFS companies are increasingly incorporating ESG factors into their products and services.
Timeframe
near-term
Categories
Detailed Analysis
Pressure from customers, investors, and regulators is pushing BFS companies to prioritize Environmental, Social, and Governance (ESG) factors. New platforms and services are emerging that enable individuals to align their financial decisions with their values. "By 2025, a combination of customer, investor and regulatory pressure will compel BFS companies to balance profit with purpose."
Context Signals
USD 51 billion invested in ESG funds in 2020, double the amount in 2019.
Example of an Icelandic bank calculating customer carbon footprints.
EU regulations requiring financial advisors to inform clients about ESG investments.
Edge
ESG could become a core component of financial product design and marketing.
New financial instruments may emerge to support impact investing and social enterprises.
Increased transparency and standardization will be needed to ensure the credibility of ESG claims.
