Daily FNArena News - ESG Focus

Plastic collection and recycling presents opportunities for disruptive technology and innovative design; and recycled plastic is a potent ESG thematic, so expect strong activity in the institutional-public-offering and mergers-and-acquisitions markets over the next five years.

Plastic recycling is preparing for a golden decade as the fourth industrial revolution, the shift to a circular economy, climate change and global regulation conspire to drastically increase demand.

Increasing focus on ESG criteria is feeding into emerging new business models, and investors will be forced to pay attention

The Federal Government has announced that it will invest in the Australian recycling industry, starting with an overhaul of its procurement laws. 2020 promises to be a busy year.

The coupling of a circular economy to 4IR means manufacturers are likely to be regulated into supporting the UN Sustainable Development Goals. As a reference point, we provide the SDG targets that will most affect manufacturers.

Governments have determined to use 4IR as a lever into a circular economy, meaning government taxes, subsidies and ESG investment choices will be one of the major sources of capital and drivers of financial success for the manufacturing industry.

Despite steps being taken to bridge the global economic gap, inequality remains vast and entrenched in our society.

The global manufacturing industry stands on the brink of disruption as a perfect storm of digitisation, AI, robotics, and big data transforms industry. Add circularity and ESG to the mix, and it promises to be a wild ride.

Analysis of last year’s AGM season shows boards in Australia are receiving less rejections from shareholders, but larger sized companies receive more plus climate change is now firmly in focus.

The boards of Australia’s major banks survived their AGMs but a wider issue of proxy voting rights is playing out in the ESG sphere.