The sudden onset of the Covid-19 pandemic in 2020 highlighted that sustainability is much more than addressing environmental risks. It means creating resilient infrastructure, and this is where Environmental, Social, and Governance (ESG) discussions come in. An ESG investment relies on independent ratings to assess a company's policies and behaviors regarding the environment, social impact, and governance.
Cybersecurity is one of the greatest risks to businesses across Europe, North America, and East Asia and the Pacific, according to the World Economic Forum in 2018. ESG's cybersecurity segment covers every aspect of an organization's security lifecycle, from network, endpoint, cloud, data, and services security. Companies in the cybersecurity sector assist their clients with data protection, cybersecurity training, reporting on cybersecurity and reducing risks associated with cybercrime.
Since the COVID-19 pandemic, the use of digital platforms has increased. So have attackers increased to deceive employees and customers by impersonating brands with COVID-19 as bait. Phishing attacks, malware, and ransomware attacks have increased, and thus the responsibility of cybersecurity companies assist their clients in protecting their data from cybercriminals.
Several best-in-class cyber securities companies have tapped into this market position to create sustainable strategies geared towards creating positive ESG impacts.
Managing cyber risk has become a priority for many organizations as cyber threats continue to grow. Also, both internal and external stakeholders are becoming aware of how cybercrime can affect businesses and are integrating cybersecurity practices into their ESG strategy. Cyber security companies have various programs which help their clients disclose cyber related incidents completely. Developing standards around reporting cyber-related incidents can reduce clients' cyber risks.
As cybersecurity advances, new ways are being developed to defend against unwanted attacks on business networks. Companies in the cybersecurity space offer technologies like Artificial intelligence (AI), machine learning, and deep learning help businesses protect their data. In addition, using Firewall as a Service (FWaaS) has strengthened digital parameters and forced hackers to modify their attacks. The Cybersecurity sector offers a variety of programs to spread awareness, including security-focused culture, frequent interactive exercises, ambassador programs, lunch and learns, etc.
A socio-economic perspective on cybersecurity demonstrates the importance of trust in & security of digital environments when viewed through the UN-SDGs (United Nations’ Sustainable Development Goals). The cyber security industry is a strong contributor to SDG 9, which focuses on industry, innovation, and infrastructure. Most of the companies in this sector are striving to achieve this goal by creating a safe, secure, resilient, and peaceful cyberspace for citizens in developing countries.
Currently, cybersecurity is the most immediate and financially material sustainability risk that organizations are facing. Cyber governance is of utmost importance in corporate governance. If organizations do not implement good cyber security governance, using the right tools and metrics, they will not be resilient or sustainable.
There is a growing concern about the threat to personal data online. Cybersecurity plays a larger role in addressing social concerns of a digital society. These include collection of personal data and the misuse and distortion of information through social platforms. Leading players in the cybersecurity market assist their clients in building strong security barriers.
In addition to the above concerns, it is important to note that any tool such as AI technology has the potential to be harmful, which is why there is a strong push for ethical and responsible AI. As a result of cases such as this, firms are becoming increasingly aware of the importance of bias mitigation and transparency.
In 2021, the global cyber security market size was valued at USD 184.93 billion and is expected to grow at a compound annual growth rate (CAGR) of 12.0% from 2022 to 2030. As the number of cyber-attacks increases, cloud solutions are deployed, smart devices are being used more frequently, and cyber-attacks are becoming increasingly common. Increasing use of devices with intelligent and IoT technologies will lead to an increase in cyber threats. As a result, organizations will adopt and deploy advanced cybersecurity solutions to detect, mitigate, and minimize cyber-attack risks, thereby contributing to growth of the market.
• Cisco Systems, Inc.
• Palo Alto Networks
• McAfee, Inc
• Trend Micro Inc
• Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape
• Key insights on infrastructure developments and ESG issues affecting the theme
• Identify key initiatives and challenges within the industry
• Identify ESG leaders within the industry
• Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process
• Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment
• Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the cybersecurity market, globally
• Key insights into Infrastructure developments and ESG issues affecting the theme
• Identifying ESG risks and opportunities to business among leading players in the cybersecurity market
• Obtaining a clear and relevant understanding of company actions, progress, and impact and find opportunities for investment into the sector
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