We are in a period of flux; the world is undergoing multiple complex transitions, but shocks and release of tension could also brighten the risk outlook. Meanwhile, a number of key developments are likely to shape environmental, social, and governance (ESG) trends over the course of 2017. These include:
• The long-term shift to a low-carbon economy and physical natural capital risks;
• Technological change of unprecedented depth and speed;
• A new global economic and geopolitical balance and the associated risk of division and polarization;
• The emergence of the Sustainable Development Goals (SDGs), along with a new generation of (individual) market participants that is increasingly focused on social issues; and
• A stronger institutional focus on long-term risks and opportunities that can affect economic, political and societal development and growth.