Data privacy and cybersecurity-related issues have become major drivers of business risk in the past several years. In 2020, cybersecurity topped the Allianz Risk Barometer for the first time since its inception, rising to #1 from #5 in just 5 years.
Sustainalytics considers Privacy and Security a material ESG issue (MEI). The Privacy and Security MEI shows investors which companies are most exposed to this risk and how well they are managing it. In this backgrounder, we will examine why this issue is growing in importance, analyze which industries are most exposed to this issue and highlight companies that perform well on this material ESG issue.