3 key investment trends for a post-COVID world
The Refinitiv article, “3 key investment trends for a post-COVID world,” quoted Russell Reynolds Associates Board Advisory Specialist Andrew Droste on the rise of stakeholder capitalism and why the theory is being further underscored by the inequities being exacerbated by the pandemic. The article is excerpted below.
What shape will the recovery take? Will ESG investing come to the fore? Will alternative data help? Post-COVID-19 investment trends were put under the spotlight in a Refinitiv-hosted LinkedIn discussion featuring experts from across the business world.
- During the LinkedIn discussion, the experts gave their views on the pace and shape of the post-pandemic recovery. Forty-four percent believe it will be a ‘W’-shaped recovery.
- In the post-COVID-19 landscape, new consumer trends will emerge. These trends include a shift to online shopping and working from home, while videoconferencing will grow in popularity.
- The first-half of 2020 has seen record levels of investment in ESG. This focus on sustainability will be a key investment trend in the future. Meanwhile, alternative data will become an important tool in analyzing future investment trends.
The entire world sits in anticipation, waiting to see what the ‘new normal’ of the post-crisis era will look like and how we can adapt and rebuild our economies.
ESG investing will be big in the post-COVID-19 era
The experts agreed that COVID-19 is a wake-up call for all businesses. which has revealed that our markets and supply chains are fragile and easily disrupted. This will result in an increased focus on sustainability — something we have already seen happening with the high level of investments in the first quarter of 2020.
Andrew Droste, of Russell Reynolds Associates, said: “COVID-19 has exacerbated inequities and underscored the importance of companies expanding the strategy and risk management processes to include key stakeholders beyond shareholders.
“Long- (and short-) term value and profits to shareholders are diminished and cannot thrive over the long term if there is an erosion that occurs among employees, customers, supply chains, governments, or society at large.”
Creating successful ESG strategies
Based on learnings from the crisis, our experts have identified the key factors to a successful post-pandemic ESG strategy.
Focus on integration, from management KPIs to reporting, said Andrew Droste.
To read the full article, click here.