ESG Investing Trends to Watch in 2024

As environmental, social, and governance (ESG) factors take on greater importance, several industries stand out as likely targets for investment in 2024. Here are some key sectors investors will be watching closely:

Charging Up Renewables

Renewable energy is poised for major growth to meet sustainability goals and rising demand. Wind, solar, geothermal and energy storage developers will need influxes of capital to expand capacity. Related infrastructure like transmission lines and EV charging networks will also require financing. Major investments in renewables and electrification are forecast in 2024.

Powering Up Mining

Supplying materials for renewable energy hardware and electric vehicles requires mining precious metals like lithium, cobalt, nickel, copper and rare earth minerals. Merger and acquisition deals are already heating up as mines rush to increase capacity. Watch for mining companies adopting greener practices to attract ESG-motivated investments in 2024.

Cultivating Sustainable Agriculture

Food production has major environmental impacts. With regulations like the EU’s anti-deforestation rules taking effect, sustainable agriculture will be top of mind. Investments in organics, urban farming, regen agriculture, and companies improving supply chain transparency and traceability will blossom.

Building a Greener Real Estate Market

Green building development and retrofits are hot ESG investment themes. Real estate focused on energy efficiency, renewable energy integration, water conservation and healthy materials will draw investor enthusiasm. Expect a surge of capital deployment into sustainable property assets.

Advancing Healthcare’s Digital Transformation

Healthcare’s adoption of AI, telemedicine, wearables and electronic records is accelerating. But digital healthcare also multiplies cyber risks. Major investments in health-related privacy, data security and IT infrastructure upgrades will be imperative as the industry pursues a tech-enabled future.

With growing pressure on corporations and investors to demonstrate ESG commitment, these sectors are primed for transformative investments in 2024. Companies getting ahead of the sustainability curve have ample opportunities to attract financing and thrive.

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