The climate crisis is the number-one ESG concern for investors. Managing plastic and other waste was cited by 62% of respondents as the most relevant issue for ESG investing for 2021. Water scarcity management followed, with more than half acknowledging it as a significant risk. The recent uptick in natural disasters, and their human and financial toll, was also top of mind for investors.

While the COVID-19 pandemic dominated headlines in 2020, investors appear less concerned as vaccine rollouts begin across the globe. Moving forward, it seems the success of the vaccine and its distribution will dictate the level of investor anxiety over the pandemic. In addition, the social risks of 2020 also appear to be receding in investors’ minds moving into the new year.

Finally, and perhaps most surprisingly, antitrust issues in the tech sector were low among investor concerns. ESG portfolios typically weigh heavy in the sector, and any potential break-ups would create large-scale uncertainty and risk; it appears this is underestimated at this moment in time.