ESG 2.0 2026 Outlook Getting ESG Right Is Crucial To Identify Risk, Opportunity When done right, ESG is critical to identifying industry-specific risk and opportunity, and themes that will shape company fundamentals. Bloomberg Intelligence's focus on financial materiality can unearth potential share price outperformance and identify key ESG themes for 2026 likely to shape companies such as Eaton, Mitsubishi Heavy, and Cloudflare. • ESG Events Can Move Stock Prices, Credit Spreads: Limiting exposure to event risk helps reduce losses—for instance, Equinor’s oil spills captured in our Market Moving News model since 2016 led to an average -1.1% relative return on the event day. • ESG Funds Reach $3 Trillion Despite Backlash: Fund managers face competing realities, with assets in labeled funds surpassing $3 trillion despite more than 700 funds dropping or revising ESG-related terms in their names. • Emerging Themes: Carbon capture and storage, the implications of AI, climate adaptation and resilience, unintended policy boosts, and the rise of ESG in emerging and private markets are key themes that will drive investments beyond ESG. Oct. 27, 2025 1 No portion of this document may be reproduced, scanned into an electronic system, distributed, publicly displayed or used as the basis of derivative works without the prior written consent of Bloomberg Finance L.P. Copyright and Disclaimer notice on page 62 applies throughout. © Bloomberg Finance L.P. 2025 Oct. 27, 2025 Contents Section 1. Executive Summary 2 Section 2. Catalysts to Watch 3 Section 3. ESG+ Asset Trends 4 Section 4. Political & Regulatory Outlook 7 Section 5. Stewardship & Engagement 10 Section 6. Sustainable Debt 13 Section 7. ESG Scores: ...
