Eq: Tech

Teradata, a leader in cloud computing made some big predictions for the Financial world in 2022. The biggest change is more AI adoption and software development in banking. Branches have closed in Europe and America and supplementing this with AI will be key. They also anticipate widespread adoption of the cloud in banking, but this could come with systemic risks as this is a new frontier for a small number of firms and failure could be catastrophic. Finally, regulators are going to take a step up in 2022 when it comes to ESG. These changes will mean more data analytics and statistics. Banks and companies will work independently to provide emissions data that can satisfy regulators as to their ESG status.

FINSUM: The cloud brings great efficiency for portfolio software moving forward; a one-stop-shop for lots of metrics and management tools!

ESG has been one of the fastest-growing stories of 2021 and has taken over every other headline with it. However, things could be shifting in 2022 for ESG, and fund leaders see things shifting for ESG in 2022. The first big area of change will be talent and analysts more catered to addressing and differentiating ESG content. Investors will also face greater scrutiny from compliance officials and regulators, and language will be more cautious moving forwarded. Finally, investors themselves will definitely demand more than just a green label, but rather specifics of how companies are meeting and leading the way in ESG.

FINSUM: If 2021 was the year of explosion in ESG and impact investing, 2022 will be marked by how regulators tightened the reigns on this explosive industry.

Investors are doubling down efforts to carry out specific reviews of companies ESG compliance, as a new survey found that 72% carry out reviews compared to a meager 32% a couple of years ago. Some stocks are standing out from the crowd as good ESG investments moving forward. Microsoft stands out by their detailed yearly reports that will stand up to scrutiny and their pledges to reduce their carbon footprint seem very plausible. The next big stock is Nvidia which has one of the highest ESG ratings in the chip manufacturing industry and GPU and other chip demand will only grow moving forward. Dividend darling Coca-Cola should also be on investor’s radar as it has a long positive history of supporting sustainable initiatives. Rounding out the best picks is American Express which has an AA rating on ESG efforts putting it in the industry's 93 percentile.

FINSUM: Stock pickers should look out for consistent ESG benchmarks as this will likely lead to outperformance moving forward.

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