1、SUSTAINABILITY AND CLIMATETrends to Watch2 0 2 5In Focus2Research InsightsMSCI ESG Research LLCResearch InsightsMSCI ESG Research LLCIntroducing MSCIs Sustainability and Climate Trends to Watch 2025In a world that feels ever more uncertain,investors everywhere are looking for information that can gi
2、ve them an edge.Study after study shows that sustainability data can help identify more competitive,more profitable,less risky companies with higher long-term returns and a lower cost of capital.The latter half of this decade will bring profound shifts,driven by geopolitics,disruptive technology bre
3、akthroughs and environmental challenges.Investors will need to contend with the sweeping effects of the energy transition on users and suppliers of energy,the escalating impact of climate-related events and new risks associated with the widespread adoption of AI across every sector of the economy.Su
4、ch unprecedented change brings unprecedented opportunity.The energy system transformation presents one of the most significant investment prospects of our time,with strong returns anticipated by many investors in low-carbon energy,green transportation and energy-storage solutions,especially in priva
5、te markets.If youre a long-time reader of our“Trends to Watch,”you might be wondering why regulation isnt front and center this year.Since 2019,weve consistently written about the rising tide of regulation,but this year,we made a conscious decision not to feature it.Thats not because regulation is d
6、iminishing in fact,it is ramping up globally but because an intense focus on compliance and disclosure runs the risk of overshadowing the critical investment opportunities and challenges were here to address.Well continue to monitor sustainability and climate regulations and do everything we can to