The Social Dilemma

An Introduction to Social Factors for Investors 

As investors are currently working their way through the recent market turmoil, we wanted to draw your attention towards another important topic that is gaining increasing focus at this time. The recent rise in inflation has led to a cost-of living crisis, in the wake of the Covid-19 pandemic that had already compounded rising inequalities. This is not the only social catalyst of late, from the female empowerment movement in Iran, to the ongoing Russian war in Ukraine, social events have been brought the forefront of public and investor attention.

Following our recent papers on climate and nature, our latest ESG research paper provides an overview of social risks and opportunities as the next frontier for investors, covering:

• The definitional frameworks investors can draw on to define and group social factors, such as the Department for Workplace and Pensions list of social issues
• Social risks as systemic risks for economies and financial markets, as seen in the wake of the Covid-19 pandemic, and we highlight some of the social risks receiving increasing investor attention
• Investor momentum, including under the Taskforce on Inequality-related Financial Disclosures developing inequality disclosure guidance for companies and investors, alongside a growing number of other social collaborative initiatives

Please contact Isio today, to start your social impact journey. We can support you in the setting of social beliefs and targets, engaging with managers on social risks and opportunities, or implementing new best-in-class social solutions.

Read our research paper