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2021 promises to be a landmark year for environmental, social and governance (ESG) initiatives. Following concerns that COVID-19 would dampen ESG efforts, the global focus on “building back better” has instead set the tone for ESG issues to remain a priority for governments, corporate boards, investors and consumers.

This is a global trend: from the US re-joining the Paris Agreement and new climate targets in China, the rapid growth in impact financing and investing, to the continued dialogue about diversity and inclusion sparked by the Black Lives Matter movement, ESG ripples are being felt across all industries, sectors and geographies.

Below we set out the five key ESG trends we expect to see in 2021 and some thoughts on how business should prepare to respond to the rapidly increasing demands for stronger ESG performance from consumers, investors and regulators.