WHAT IS DRIVING THE ESG BOOM?

Key Global Challenges and Drivers

Global Challenges ESG Drivers Download ESG Report

Global Challenges

A sustainable company is one that is managed in such a way that is positioned for long term financial success while accounting for all stakeholders’ interests. ESG data are the means that can enable an investor to quantify a company’s strategy, corporate purpose and management quality.

There are various reasons why ESG is increasingly becoming an imperative for companies across the globe. The world is changing, and companies need to change with it in order to deal with the resulting challenges and ensure sustainability.

Key Global Challenges Driving the Need for Change

ENVIRONMENTAL CHALLENGES

	Industrialisation and extended use of fossil fuel have led to the global warming which could cost millions of lives by 2100
	Negative externalities of human activities are costing the lives of millions of species

SOCIAL CHALLENGES

	The development of our societies has left 700m+ people in extreme poverty
	600m+ children still lack basic reading skills
	Gender and racial discrimination still have strong roots in our societies

ECONOMIC CHALLENGES

	Depletion of traditional energy sources is a global challenge to sustained growth
	Address climate change while avoiding recession is an important challenge
	Helping lagging economies to catch up is a top priority to ensure consistent growth

What is Driving the ESG Boom?

Interest in environmental, social and governance-oriented investing has soared lately. ESG investing grew to more than USD 30 trillion in 2018, according to the Global Sustainable Investment Alliance, and that number is set to keep rising as consumer tastes shift and investors demand more transparency.

According to recent analysis by EPFR, there is now a noticeable impact on some stock prices, and ESG-focused equity funds have taken in nearly USD 70bn of assets over the past year, while traditional equity funds have suffered almost $200bn of outflows over the same period.

Key Drivers Behind the Boom in ESG Investing

PUBLIC AWARENESS

Public opinions have been more and more aware and vocal about global challenges, led by independent groups of researchers and NGOs – resulting in growing pressure on corporations and governments

CORPORATE PRESSURE

With the rapid shift in mentalities and the growing pressure from consumers/public, an increasing number of corporations have stopped waiting for strict regulation to commit and strongly invest in ambitious sustainable goals

GOVERNMENT REGULATIONS

Governments are under increased pressure to take stronger actions and address targets fixed by the United Nations, resulting in stricter regulation upon corporations and
strong commitment to sustainable policies

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Get a full overview of GCA Altium’s ESG expertise and analysis of the current ESG trends in the M&A market.

ESG: INVESTING WITH IMPACT

ESG: IMPACT ON M&A

OUR ESG SECTOR COVERAGE

GCA is a trade name for GCA Corporation and its subsidiaries and other affiliates which include:

• GCA Advisors, LLC, a Delaware limited liability company, registered broker-dealer and FINRA (www.finra.org) and SIPC member firm (www.sipc.org). GCA Advisors, LLC provides independent financial advice on matters related to Mergers & Acquisitions, Debt Capital Markets, Recapitalization & Restructuring, Cross Border and Strategic Alliances, Special Committees, Private Funds, Private Placements and Venture Support. Check the background of GCA Advisors, LLC on FINRA’s BrokerCheck (brokercheck.finra.org).
• GCA Altium Limited, a company providing financial advisory services in the UK, Switzerland, Germany, Italy and Israel and incorporated under English law, is authorized and regulated by the Financial Conduct Authority in the United Kingdom and provides independent financial advice on matters related to Mergers & Acquisitions, Debt Capital Markets, IPOs, Recapitalization & Restructuring, Cross Border and Private Placements.
• GCA Corporation, a company incorporated in Japan which provides financial advisory services on matters related to Mergers & Acquisitions, Cross Border, Private Placements & IPOs, Growth Strategy Services, and Post-Merger Integration.
• GCA China Company, Limited, a company incorporated in Shanghai which provides financial advisory services in China on matters related to Mergers & Acquisitions, Cross Border, Mezzanine Financing, Growth Strategy Services, Due Diligence and Post-Merger Integration.
• GCA India Company, Limited, a company incorporated in Mumbai which provides financial advisory services in India on matters related to Mergers & Acquisitions, Cross Border, Mezzanine Financing, Growth Strategy Services, Due Diligence and Post-Merger Integration.
• AMPLIA, a subsidiary of GCA Corporation in Japan, provides Venture Support services in Japan and the US.
• GCA FAS, a subsidiary of GCA Corporation in Japan, provides Due Diligence advisory services and M&A transaction services.
• MCo Corporation, a subsidiary of GCA Corporation in Japan, provides Mezzanine Financing in Japan.