I'm Sarah Cottle, global head of
Inside AT S and P Global Market Intelligence.
Here are the key themes we expect
to shape the industries and sectors we cover
in 2021.
First, the energy transition will
continue apace.
The cornerstone of this transition
is a proliferation of renewable resources.
With the new administration in Washington, D.
C. The rate of change is only
going to increase as federal
initiatives combined with those already in
place at state and local levels.
What is driving the build
out of renewable generation? Understanding.
This is key to managing the risks
on realizing the opportunities that come together
at the intersection of policy regulation
and markets.
The evolution also includes broader
shifts, such as reducing
carbon emissions and deploying advanced
technologies
that changed the way energy users interact
with the grid on their local utilities.
Second Cove in 19 on
the new normal.
Whether or not 2021
sees an end to this pandemic, the new
normal in the working world is here to stay.
Measures implemented in response
to the virus are becoming permanent changes
and S and P Global Market Intelligence
Voice of the Enterprise survey in October
saw 64% of businesses
planning permanent on significant
increases in remote working,
32% expected a
reduction in office footprint
implementation will continue in 2021
as spending shifts towards resources
that support digital methods of workforce,
collaboration, sales and
customer experience Delivery
closely related to this is our third
theme off digital disruption.
As more of the economy moves to a digital
first mindset,
the organizations that can establish themselves
as digital leaders will emerge on
top.
The success of every company is increasingly
dependent on its ability to embrace
a broad range of new and emerging
information technologies.
These include I
cloud and emerging security
approaches, driving deeper engagement
With greater effectiveness and efficiency.
The global pandemic has only served
to increase the stakes.
One example from the media sector is the
rise of streaming services, which sent
shockwaves through the industry in 2020
viewing habits were altered due to lock
down orders, and 2021
will be a year of competition for subscribers
on content, rights of international
rollouts and adjustments to traditional
content business models.
Fourth, we will focus on
diversity and inclusion. Investors
are increasingly pressing. Companies toe have
diversity across their leadership teams,
boards and organizations.
Shareholders are also pressuring companies
to disclose MAWR DNA information.
They want more data about the makeup of companiesboards
management teams and workforces.
In recent years, a lot of the discussion
around diversity has been about
gender,
which is often easier to measure than
other characteristics, including race
that changed in 2020. And
now race is a much bigger focus for
companies investors on regulators.
Fifth up is mergers and acquisitions,
uncertainty caused by covert 19
dented M and a activity in early 2020.
But the pace of deals picked up again
towards the end of the year
among financial institution, the weakest
sector in 2020 waas. US
banks.
But earnings headwinds will push banks
to do deals in 2021 to gain
scale after its initial
slowdown. The technology sector rebounded
strongly, with acquirers spending more than
$600 billion on
big bets in key markets such as
enterprise software and semiconductors.
And given the blockbuster deals announced
in the second half of 2020 the
momentum seems likely to roll into
next year,
particularly as the broader economy
returns to health
last but far from least evolving
credit risk. 2020 saw
a wave of credit defaults not seen
since the financial crisis, driven
primarily by covert 19 and oil
price fluctuations.
The big question is. Will the
global economy get back on track,
helping to shore up balance sheets? Or
will economic stresses on lockdowns
drive further defaults to levels that eclipse
even prior recessions?
The path credit takes will determine
the fate of investment portfolios.
The health of supply chains
on the reliability of customer basis.
Stay connected with us, that S and P Global
Market Intelligence in 2021
to see how this extraordinary year
will unfold.