32 factors, risks investors should consider for 2023 and beyond

MSCI’s all-country world index, a gauge of stock performance in over 40 countries, fell 1.26% to record a third lower successive day after hitting a three-month high last week.

An analysis by MSCI ESG Research noted 32 factors and risks that businesses and investors should consider for 2023 and beyond when evaluating the investment space.

The risk considerations fall into seven categories: changing corporate governance, responses to regulation, supply chain innovation, work life changes, turning points for ESG assets, expansions in emissions tracking and new types of investments in ESG.

“ESG risk is financial risk,” said Meggin Thwing Eastman, managing director and global ESG editorial director at MSCI, in a news release. “ESG and climate research showcased in today’s report was conducted to support investor needs to synthesize previously unseen risks and incentivize companies to better manage both emerging issues and the longstanding, expansive threat of the climate crisis.”

Researchers said investor opposition to corporate climate strategies will be important after the average proportion of votes against such strategies went to 9.6% in 2022 from 3.1% in 2021. Whether or not climate-focused boards push back against such opposition is also a factor to pay attention to for investors.