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EV in UK

All You Need to Know About Government Pulling Plug on Its Remaining UK Electric Car Subsidies

The UK government has formally announced the termination of its plug-in car grant programme, which provided new EV owners with reductions off the overall cost of the purchase price and is believed to have helped the sale of 500,000 electric vehicles. The number of models covered by the grant and its size have been gradually reduced, but neither have had much of an impact on the quickly increasing sales volume or the steadily expanding variety of models being produced.  The UK announced that it would eliminate the rest of the electric car subsidies, claiming that this would free up funds for the expansion of the charging infrastructure and promote sales of other battery-powered vehicles like vans, taxis, and motorcyclists.  The robust demand for EVs hasn't been affected by previous grant cutbacks, proving that it was time to redirect the money to charging infrastructure and sales of other types of vehicles, according to the department. The government should prioritise funding for electric taxis, vans, trucks, motorbikes, and wheelchair-accessible vehicles as well as for increasing the network of public charging stations.  About the Grant  Your ability to purchase an electric vehicle will be made more reasonable thanks to a variety of grants provided by the government. These grants not only cover the cost of purchasing, but they may also enable you to install a charging station at your house or place of business and save money in the process.  Go Ultra Low is a marketing initiative that tries to inform potential consumers about the advantages of electric and plug-in hybrid cars while also investing in more electric charging points. By 2040, the nation's automotive fleet was to be entirely comprised of ultra-low emission vehicles.  Customers who want to purchase an electric or plug-in hybrid vehicle can take advantage of tax reductions as well as subsidies of up to £5,000 for cars and £8,000 for vans. Along with maintaining subsidies, the government also revealed plans to spend £9 million on faster charging stations that will make it simpler to drive an electric vehicle on highways.  The programme brings together BMW, Nissan, Renault, Toyota, and Vauxhall, five of the biggest producers of electric and plug-in hybrid vehicles in the UK. A total of 189,815 (Gov.UK) household charging units have been installed since September 2014 as part of the programme.  Vehicles that were eligible  The category the vehicle falls under determined how much of a grant it would receive. The eight categories were as follows:  ·        taxis  ·        wheelchair accessible vehicles  ·        motorbikes  ·        mopeds  ·        small vans  ·        large vans  ·        trucks of all sizes.  Not all low-emission automobiles qualified for the grant. The only automobiles that qualified for a grant were those that the government had approved.  Importance of Electric Vehicles  Within the next 10 (Office for National Statistics) years, more than half of drivers between the ages of 16 & 49 say they plan to switch to all-electric vehicles. Driving a low-emission vehicle can significantly lower your Vehicle Excise Duty (VED), also referred to as the road tax. Vehicles with zero emissions are totally excluded. More than half of all new automobiles produced today are battery and hybrid electric vehicles (EVs), and sales of fully electric vehicles have increased by 70% in the past year.  Despite all, there are a lot of tax advantages for purchasing electric vehicles. It's possible that the termination of the subsidies won't have a big impact on the market for electric cars given how much gas prices seem to be rising. The UK is now the only significant European market without an upfront purchase incentive for purchasers of electric vehicles.  Impact on People  It sends the wrong message to EV owners and is the wrong choice for the nation. The progress will be slowed by the high pollution reduction targets and the rising cost of electric vehicles. Although it may not seem like much money, it deters some individuals from choosing to purchase an electric car . The UK has consistently been among the costliest places in the world to purchase a car, and things appear to be trending in the same direction or even downward.  For the time being, it appears that the effect of the subsidy program's termination is at least that consumers will see prices for electric cars rise even higher, ostensibly widening the gap between them and their comparably less expensive but less environmentally friendly internal combustion engine competitors. It is also unclear how the "refocusing" of money, which is intended to support public electric charging points and the acquisition of specialty vehicles, would proceed.  Impact on Government  The UK government is clearly struggling to balance its budget and is resorting to desperate measures as global inflation is out of control and living expenses are skyrocketing for everyone. Because individuals are unable to fill up their cars, a lot less revenue is being paid. UK drivers pay 52.95 pence in fuel duty per litre, plus an additional 20 percent VAT (compare that to the US charging only 4.9 cents per litre). Government doesn't get paid when people can't afford to fill up their automobiles with gas.  The Department for Transport has long provided a plug-in subsidy programme in an effort to enhance the affordability and adoption of electric vehicles in the UK. By donating a (small) fraction of the cost of new vehicles, the programme aimed to increase consumer interest in electric vehicles. With the aggressive, if not excessively optimistic, UK ban on the sale of new gasoline and diesel cars beginning in 2030, the fund was established in an effort to move the industry toward cleaner technologies.  It will be disappointing news for many who were expected to save a lot of money by buying an EV, especially now that fuel prices are at record highs and showing no indications of going down. However, £300 million in grant funding will now be redirected towards extending plug-in grants to increase sales of plug-in taxis, motorcycles, vans and trucks, and wheelchair accessible vehicles in order to maintain the government's push towards net zero and guarantee effective use of taxpayer funds.  Government Refocusing on Electric Charging Point  All currently submitted grant applications will continue to be honoured, and sales of cars that occurred during the two working days prior to the announcement but for which a dealership has not yet submitted a grant application will still be eligible for the grant.  The Department of Transportation announced the end of the present electric car subsidies while also declaring that funding would be "refocused" on public electric charging point and aiding in the acquisition of specialty vehicles including vans, taxis, and motorbikes. While the news is undoubtedly unwelcome for the industry as a whole, there is at least some hope for companies operating in these more niche markets.  Before EV sales go even further, the UK government is simply making sure it can stomp up more money without being caught. It is simpler to promise infrastructure grants and then have private companies step in and build it; the grants will be paid later and over a longer period of time. Grants for commercial customers will take the form of tax offsets rather than direct payments. Grants were to be paid directly to recipients, and that has now obviously created a problem.  Also Read - Zero Carbon and Completely Green Electricity by 2035: UK's Plan to Fight Climate Change  Conclusion  In 2020 (Statista), one of Europe's biggest markets for electric vehicles will be the UK. The government has reduced electric car subsidies. By focusing on the support of more cheap automobiles, the adjustments, according to the department of transportation, will "make the best use of taxpayer money." Despite reductions in vehicle payments, the government has pledged to provide more infrastructure for electric vehicles, which is essential for the transition. It appears that the government's policy may be shifting to taxing pricey, high-emission vehicles.  The development of charging infrastructure will now be the government's primary area of funding. Expanding the network of public electric charging point will help eliminate "range anxiety" and make the switch to zero-emission transportation simple and practical for all drivers in the UK. The government has already allocated £1.6 billion for the development of the public charging infrastructure in the UK.  With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.        A leader in Data Analytics, SG Analytics focuses on leveraging data management & analytics and data science to help businesses discover new insights and build strategies for business growth. Contact us today if you are looking to make critical data-driven decisions to prompt accelerated growth and breakthrough performance.

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UK tourism industry

UK Travel Surges Post COVID! Impact on UK Tourism Industry

Tourism in the UK contributes 7.2% (CondorFerries) of the country's GDP. However, the pandemic's initial effects on the tourism sector were particularly severe, as efforts to quarantine the virus caused almost all travel to stop completely around the globe. The travel, hospitality, and leisure industries have all been subject to restrictions, which has resulted in a considerable decline in the industry's value. Even though there were subsequently both loosened and tightened regulations after that, the travel and tourism sector were severely impacted.  The pandemic hasn't just resulted in a decline in tourists, which is essential for the growth of the travel and tourism sector. In terms of hygiene and social isolation, it has also brought demanding modifications to hospitality venues that will be tough to adopt over time. Despite the fact that many firms and sectors have failed to come back to normal from the pandemic state. Some industries, such as travel and tourism, are attempting to expand even further following the Covid-19.  It is clear that Covid-19 has had an unprecedented impact on the industry, and that once the vaccine rollout is complete, the sector's revival will be critical to the economy's recovery.  Impact of Covid-19 on UK Tourism Industry  Although Covid-19 is a global pandemic, its effects and reactions have varied greatly in different parts of the world. Countries are removing limitations on various timelines and in various ways, just as they imposed lockdown at different times. This, of course, illustrates the diversity of our planet, which is a major factor in the need for travel.   With persistent travel restrictions and the global crisis, the travel and tourism industry run the risk of being among the slowest to recover. Beyond just the tourism industry, this has repercussions on numerous other industries that both support and are supported by the tourism industry.  Nowadays, many restaurants experience problems with seating arrangements and noticeably smaller capacity sizes, which can adversely affect the business's profit margin. As long as there are stringent restrictions on overseas travel, UK travel agencies are losing their homes and experiencing "extreme misery and desperation." In addition, more stringent hygiene standards are now demanded in hotels, and shared rooms policies may change in establishments like hostels.  Growth Possibility for UK Travel Industry  For developing economies, recovery is a crucial concern as they work toward it. In addition to being a significant source of foreign exchange, tourism has the potential to be used as a "tool" for development in order to improve supply chains, increase the productivity of local businesses, create one out of every ten jobs, and give women and young people a source of income. The benefits of tourism to regional economies and how sustainable tourism preserves cultural and natural resources.  With the lifting of lockdown measures heralding the reopening of hospitality, travel, and leisure businesses, hotels, vacation parks, restaurants, and attractions will benefit from domestic tourism. Many tourists avoided international destinations due to widespread uncertainty about infection and incidence rates, combined with regional and/or national restrictions. As a result, many people turned to domestic travel, even though the overall number of leisure vacations decreased. To lessen the impact of the pandemic, many travel companies provided free cancellations. Domestic and international travel opportunities are expanding as countries begin to reopen their borders. We anticipate that the market will gradually recover over the next few years.  Ways for growth of Travel Industry  Pent-up demand, more affordable travel options, and a desire to reconnect with loved ones are among the reasons for the increase in travel. The post-Covid travel boom has put enormous strain on the UK tourism industry.  Unfortunately, many travel companies in the United Kingdom were unprepared for the surge in travel, causing widespread disruption and confusion. Following the relaxation of lockdown restrictions, the United Kingdom saw a significant increase in domestic travel. However, many travel companies were unprepared for the influx of customers, resulting in long lines, cancelled reservations, and dissatisfied customers.  Restoring traveller trust  Assisting tourism businesses in adapting and surviving  Promoting UK tourism  Providing clear and transparent information to travellers and businesses  Ensuring the safe return of international visitors  Increasing intra- and inter-national cooperation  Increasing the resilience and sustainability of UK tourism  The government is dedicated to helping the industry recover from the epidemic and develop into one that is more resilient, sustainable, inclusive, and innovative. There will have been highly diverse patterns of recovery by location and destination, as well as varying rates of recovery for different journey reasons and trip types. International travellers now feel confident returning to the UK after all travel restrictions were lifted.  UK Travel & Tourism Industry Forecast  The tourism industry in the United Kingdom is expected to be worth more than £257 billion by 2025 (CondorFerries). The UK's tourist sector experienced the fastest job growth in 2019. Travel to and from the UK from abroad dramatically decreased when the pandemic was only getting started. The issue has gotten worse since 2019. One of the industry’s most severely impacted by COVID-19 is the tourism sector. It is not exaggeration to state that the pandemic has been the industry's greatest challenge in the period of widespread international travel. The culture secretary stated that "2022 is going to be a blockbuster year" (Independent.co.uk) in light of recent statistics that highlighted the extent of the fall of travel to the UK.  Also, Read - UK Inbound Tourism Industry Worth £127 bn – The Impact of Inbound Tourism Curbs on the Economy   Conclusion  The world's economies have been decimated by the pandemic. Additionally, it has caused life to be disrupted in unimaginable ways. Over the years, vaccinations have made it possible to gradually and safely remove limitations on daily living. But eventually, businesses will start operating again, and people will resume going out. To bring about a secure return of travel, the various segments of the travel sector must cooperate. Even as individual businesses optimise their internal processes, they ought to also closely monitor trends in the entire sector, looking for chances to collaborate.  The social and economic life is greatly influenced by UK tourism sector. The extensive usage of travel coupons from previously cancelled vacations put UK airports under further strain. The Coronavirus pandemic and tourism have an odd relationship. They have been one of the most severely hit areas of economic activity, but they have also served as a vector for the transmission of COVID-19.  On safety regulations and standards, the business community and governments must agree. This would help travellers to handle the certificates of vaccines and other necessities. It is already being evaluated by numerous airlines as a means of ensuring passenger health. In turn, governments might think about approving and integrating the app into the process of checking in for flights.  With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.        A leader in Data Analytics, SG Analytics focuses on leveraging data management & analytics and data science to help businesses discover new insights and build strategies for business growth. Contact us today if you are looking to make critical data-driven decisions to prompt accelerated growth and breakthrough performance.  

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Stocks Crash; Recession Fears Mounts

As Stocks Crash; Recession Fears Mounts: What is Happening?

US stocks rose Thursday; however, global stocks slipped. Investors are now grappled with fears about a recession after Federal Reserve Chair Jerome Powell said it is likely to be on the cards. Powell also acknowledged that the US recession is a possibility and said it is a risk. He also stressed that the central bank is strongly committed to bringing down inflation. The Dow Jones added 0.49%, and S&P 500 futures put on 0.76%. The tech-heavy Nasdaq was up 1.13% as the major US stock markets closed lower.  The current crisis in the US is intensifying recession fears. The dollar fell, and as per the latest US data, weekly jobless claims were estimated more. Manufacturing and services activity in the US saw a significant drop in June, lagging estimates and adding to worries concerning the forthcoming recession. The treasury yields dropped, with the 10-year yield hovering at 3.01%.  The Federal Reserve is moving to raise interest rates and is strongly committed to normalizing inflation, quoted Fed Chair Jerome Powell. He further stated that the central bank’s plan is to combat decades-high inflation and that the Fed will be raising rates at a fast pace if surging inflation continues to persist.   Commodities are expected to deliver breathtaking returns amid consolidated supplies and low inventories. However, volatility is likely to stay elevated.  Oil is expected to touch $150 per barrel in the short-term, whereas corn can reach $13 a bushel -- a record price.  The Economic Downturn   Energy stocks are among the hardest hit as oil prices are plunging. Shares of Occidental Petroleum, Exxon Mobil, and Marathon Oil also declined by almost 3%. Despite the losses, the S&P 500 energy sector stayed the best-performing area of the market in 2022, rising over 30%.   President Joe Biden has expressed plans to enact a gasoline tax holiday to cool soaring pump prices to alleviate the pressure on consumers.  Experts are expressing their fears that the Fed's decision will likely plummet the economy into a recession as it is continuously hiking interest rates. The central bank inflated rates by 75 basis points last week, which is the biggest increase in 28 years. The situation is also hinting at a similarly large rate hike at the next policy meeting in July.   Despite the decisive action from the Fed last week, markets plunged to their worst weekly performance since March 2020, with the S&P 500 falling 6%.  Read more: Looming Fears of Inflation, The Fed, and Recession: Where are The Financial Markets Heading?  Key Highlights  Markets finished low due to the ongoing crisis. The Dow Jones Industrial Average dropped 0.2%, less than 100 points, whereas the S&P 500 lost 0.1%, and the tech-heavy Nasdaq Composite was down by 0.2%.  The Dow was down by 400 points; however, stocks pared back losses due to the comments from Fed Chair Powell. The central bank is now working to take the essential measures to restore price stability, and this is likely to increase the ongoing rates.  Citigroup is now the latest Wall Street bank to increase its recession odds, meanwhile forecasting a 50% chance of a downturn due to softening consumer demands.  Goldman Sachs stressed the odds of a recession at 30% in the next year while also slashing GDP estimates to 2% due to tighter monetary policy from the Fed.  Morgan Stanley forecasted a 35% chance of a recession in the next year. They also stressed that the S&P 500 is likely to plunge by another 20% due to surging inflation.  The US recession is emerging as a possibility. Meanwhile, oil prices retreated, increasing concerns about an economic downturn that will drag on fuel demand.  While the Federal Reserve's interest rates hike is likely to onset a recession, policymakers believe that there is a risk that it will also break the economy. The outlook for risk assets in a year of steep drops across markets is garnering skepticism from investors and organizations alike. Stocks are predicted to face more losses amid dimming economic prospects.  Read more: The Changing Dynamics of International Investment in India  The Stock Market Rally  The stock market rally attempt made progress, especially on the Nasdaq, hinting that inflation is peaking. These inflation-peaking hints comprised plunging copper and other commodity prices, which are also reflecting the rising recession risks. On Thursday, the commodity-related stocks were hard-hit.  The stock market rally attempt staggered yet again, but the major indexes ultimately closed near session highs. U.S. crude oil prices retreated. Copper prices plunged more than 5%, a fresh 16-month low. Other metal futures and crop prices also dropped. The small-cap Russell 2000 climbed 1.1%. Markets are priced in slightly less tightening. Investors are now overwhelmingly anticipating another 75-basis-point rate hike.  While the major asset averages moved higher, there were some big losers beneath the surface. Recession fears are also slamming oil and other commodity prices. However, energy stocks, miners, and fertilizer makers are selling off hard. The market rally is exhibiting some positive action, though there are plenty of warnings.  What lies ahead?  Stocks tumbling across the globe are adding to the fears of recession resurfacing. The Federal Reserve, struggling to stay on top of inflation, has proved more persistent and widespread.  The S&P 500 closed the lowest for the first time since December 2020. The Dow Jones Industrial Average also tumbled more than 2.4%, pushing it below 30,000 points, a first since January 2021. Energy companies that were deemed to fall in the event of an economic slowdown also dropped.  Markets were already in shaky territory due to the recurring COVID-19 wave and the ongoing geographical crisis. Investors fear that the moves will tip the global economy into a sustained slowdown. While inflation is being predicted as 'out of control,' the Fed is doing the best it can with its limited tools. Despite the stock carnage, valuations still have a long way to go before they fall.  The dollar fell as central banks in Europe tightened up their monetary policies, promising to narrow the gap between rates in Europe and in the US. Bitcoin also dropped below $21,000 amid its longest slide.  The S&P 500 is now stressing an 85% chance of a US recession amid fears of a policy error by the Fed. The warning is basis the average 26% decline for the gauge during the past 11 recessions, along with the collapse into a bear market.  Here is what the other major assets are up to:  The euro fell 0.6% against the dollar to trade at $1.0506, whereas the US dollar index strengthened 0.39% at 104.60.  The yield on the US 10-year Treasury note plunged to 3.126%.  Treasury yields declined, leading to the dollar falling after earlier gains  First-half losses for the S&P 500 are being deemed as the biggest since the 1970s  Investors are expecting that the Fed will reinforce the commitment to fight price pressures. A backdrop of tightening financial conditions is leading delegates and investors to question - whether this economic slowdown will turn into a soft-landing or a recession?  Key Takeaways  The Fed is open to accepting the recession risk to deliver below-trend economic growth.  Concerns among organizations as well as investors are mounting about where the Fed is headed, probably towards a policy mistake.  Despite the continuous assurance, it is unclear whether the Fed has the reliable tools to tamp down prices.  Read more: Tech Stocks Slump is Triggering the Withdrawn of ESG Funds: Here's Why  In Conclusion   It is time to address inflation. The supply-side factors are also showing no signs of easing, as the central banks are tightening monetary policy. Investors are sensing the looming fears due to the Fed's revised policies. The US market is also facing another crisis - the overheating labor market. The crisis has also accelerated the integration of environmental, social, and governance factors into money funds.  The 10-year yield fell below 3.10% just nine days after spiking to 3.50%. Commodities ranging from oil to copper remained under pressure as the signs of the economy waning are mounting. Policymakers are now raising their rates to slow the demand in hopes of easing the pressures pushing up consumer prices.  How will the second half of 2022 playout for the US economy?  How will the major asset classes react to the crisis?   The turmoil and volatility of the economic market in the past few months have made Americans as well as organizations skeptical of what lies ahead.  With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.      A leader in the BFSI space, SG Analytics assists businesses with insightful relevant research along with sophisticated technology solutions. Contact us today if you are in search of an efficient market research service provider to make critical data-driven decisions.     

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Business Resilience in the new age of Innovation

Anticipating the Unanticipated: Balancing Business Resilience in the new age of Innovation

The world is undergoing disruption, and businesses are experiencing risk that has not been seen in generations. While some companies are freezing and failing, others are embarking on the journey to innovate, advance, and even thrive. The only differentiating factor is resilience.  The prime objective of an organization’s leadership team is to deliver solutions that align with the needs of its customers. Leaders are now recognizing the need for optimal product or service delivery as it is changing the future and creating the need for innovation. However, this focus on innovation without considering resilience can raise issues like supplier points of failure, non-sustainable practices, or even communication lapses. The ongoing pandemic, along with the rising geopolitical tensions, is teaching countless organizations this painful lesson.  Today the world is changing, and so are the risks. Due to the adverse situations created by the COVID-19 pandemic, organizations are now reimagining both the workforce and work design to be resilient. They are sensing the need to respond to change repeatedly and on a scale.  With business strategies evolving, organizations will be required to take deliberate action to prioritize resilience and not just focus on efficiency, to succeed in and fulfill their strategic ambitions.  Read more: Sustainability Tech Innovations that will power 2022  Identify Single Points of Failure  Identifying and addressing single points of failure is a vital step to balancing innovation opportunities with resilience. It is equally important to determine the organization’s alternatives for inputs, suppliers, and geographic sources in case a crisis or disruption occurs. Organizations should be able to identify their allies as well as their substitution in the research and development process to ensure innovation is resilient.   Employ Sustainable Tactics   Research & development and product management organizations need to innovate in a sustainable manner. Failing to innovate sustainably can lead organizations on the path of unnecessary disruption, failure, higher costs, and poor customer experience.  Enhance Communication  One common innovation mistake that organizations make is linked to communication between key team members. Business continuity and resilience professionals often fail to engage with the organization’s research and development and product management teams. This lack of communication and engagement can directly give rise to imbalanced financial optimization and customer experience. Instead, organizations should work towards incorporating resilience at the initial stages in the product or service development process as necessary.  The Shift from Efficiency to Resilience  Before the pandemic, organizations were really focused on efficiency. This indicates that many organizations were trying to drive growth by creating transparent processes. While that worked well for many organizations, it did not work for others. During this time of unprecedented change, this efficiency became more fragile, making organizations vulnerable to dealing with change. However, organizations are now advancing on the path toward resilience instead of moving toward efficiency.  Through the pandemic, organizations have been able to respond with a lot of speed and incorporate the changing elements for smooth functioning, but with situations changing, they are now sensing and responding repeatedly. Organizations are focusing on making sure that they have their resources, talent, and operations designed and deployed to perceive and respond to these continuous changes.  Organizations in pre-pandemic work and pre-resilience times were more focused on improving efficiency. But today, with the changing dynamics, they are looking at an alternative workforce that is driven by resilience. Many organizations are switching to a more dynamic point of view. They are now moving to explore elements to maximize productivity and engagement.   The new operating model for the 21st century should be underpinned by innovative ways of working that enable remote employees as well as distributed teams to work effectively and seamlessly and deliver outcomes.   The elasticity of the organization as an entity depends on these agile methods of working, backed by digital technologies that are embedded across the organizational framework. And that is what's really important. Organizations need to set up their operations for sustained resilience and success in the long haul.  Read more: Blockchain Gamification and the Emergence of Innovative Business Models  Implications of Resilience for Businesses  Today's era of innovation demands resiliency. The traditional operating model employed by organizations is more focused on optimizing and creating efficient processes and organizations. This approach has served companies as well as business environments to characterize their operations with relative stability and reliable distribution channels. It is time for businesses to embrace this paradigm shift and focus on cultivating a resilient toughness as well as the ability to endure different storms.  Recent events have exposed the weaknesses of this efficiency-first approach followed by organizations.  Global supply chains were shattered. The lack of operational buffers, including spare inventory or capacity, led to the creation of bottlenecks for critical business activities. Employee engagement and productivity increased across the pandemic. This new elevated risk environment has triggered severe disruptions, which are now becoming difficult for organizations to anticipate. Organizations with more flexibility and elasticity in their procedures do have a competitive advantage. Consequently, the new elevated risk environment requires an operating model that is more focused on resiliency and agility.  Organizations need to identify and sacrifice some efficiency gains for greater resilience. However, greater resilience can come at the cost of reduced margins, elevated prices, or a combination of both. Indeed, organizations need to focus on different priorities to drive long-term value, as businesses, markets, and supply chain environments are continuously shifting and changing.  Takeaways  Risk volatility and the amplified effects of overlapping events have given rise to a need for a new approach to strategy and operations for businesses to thrive.  Enterprises are shifting from an efficiency-driven focus to establishing a balance between resiliency and efficiency.  For businesses to succeed in this new era of risk, they should adopt scenarios envisioning practical work methods backed by digital tools and technologies that can offer the right insight into the rising probabilities of different futures.  Read more: Data-Centricity: The New Roadmap to Driving Enterprises in a Changing World  Key To Resilient Innovation   The key to balancing innovation and resilience for an organization is to approach it in a way that involves a fallback plan, enabling the organization to revert to pre-innovation practices. It is vital to consider sustainable suppliers and sources when selecting the input for the products or services. The key to introducing value in an organization is through innovation along with business resiliency. Being resilient implies focusing on avoiding disruptions to organizational productivity and establishing fast-acting recovery strategies to respond to any crisis.  To effectively transform the organization with this learning in hand, there are two actions to move in the right direction.   Identify and address the single points of failure and vulnerabilities and prioritize them depending on the issues and exposures.  Future-proof the framework by considering resilience at an early stage when applying innovation to enhance capability.  With more and more economies beginning to recover from the COVID-19 crisis, it is time for organizations to engage in these issues, support their management teams, and ensure that the organization remains resilient and competitive through.   Hence it is significant for organizations to double down on innovation to focus on possibilities for competitive differentiation. What organizations can do instead is to move from 'no' to 'go.' Organizations need to move the bar on what requires approval for them to place 'yes' in appropriate intervals. It is important to allow organizations to evolve and improve and apply resilience concepts at the initial stages of the research and development process.  With organizations moving back to normal workflows, there is a lot of risk of losing ground. The key is to recognize the complex nature and fragility of global supply chains and integrate a balance with sustainability. It is equally important that organizations incorporate the key friction points and design workflow accordingly to build the required sustained resilience to get us through the crisis.  With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.      A leader in Market Research services, SG Analytics enables organizations to achieve actionable insights into products, technology, customers, competition, and the marketplace to make insight-driven decisions. Contact us today if you are an enterprise looking to make critical data-driven decisions to prompt accelerated growth and breakthrough performance.   

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Inflation Hits a New High in the US

Is the US Slipping into Recession: Which Industries are at Risk?

A growing number of investment banks and organizational leaders are warming up to the warnings of the likelihood of rising recession risk in the US. Despite reeling from a steep selloff in recent weeks, the stock market does have plenty of room to fall before hitting levels consistent with recession-era lows, notified Morgan Stanley. This situation is expected to be especially bad for cyclical industries like travel and hospitality.  Recession risk in the US is higher and more front-loaded. The Fed’s more aggressive rate hike is putting the odds of a recession over the next two years at 48%. This was previously recorded at 35%. These tighter financial conditions are estimated to drag down GDP as much as 2 percentage points over the span of next year.  The Brewing Storm  US citizens are seeing economic storms brewing. The rising risk of inflation has turned the economic mood sour at an alarming pace and put Biden's administration in risky waters. Key issues like student loans are paralyzed by inflation fears. The administration is now casting around for outside-the-box fixes to help hard-pressed American households. from a windfall tax on commitments. Economists are laying out arguments on why the soaring cost of living is not Biden’s fault.  Over the last few months, inflation rates spiked higher, triggering another leg of the stock-market rout. This has pushed the Fed into an even more hawkish stance. The sentiment of US consumers plunged to the lowest level. Rising prices are primed to be this year’s top election issue.  The crisis sparked due to the pandemic supply-chain crunch and massive fiscal stimulus. The situation worsened due to the new impetus from the energy shock that followed Russia’s invasion of Ukraine. Inflation today has reached levels that many Americans have never experienced in their lifetimes. The inflation along with the unemployment rates together are adding to the misery of the economy.  Is it a Recession or Worse?  Worries about inflation are hitting policy discussions. While the effort has been unsuccessful, businesses are now condemning the lack of understanding that is driving inflation.  Is this really the onset of a Recession?  The S&P 500 stock index fell about 20% from January’s peak. The average mortgage rate has also doubled since then. It climbed close to 6%, the highest since 2008. These market moves are being driven by the Fed’s pivot. The central bank’s new policy is already denting wealth and adding to financial costs for Americans instead of presenting a way of cooling off prices.  Read more: Looming Fears of Inflation, The Fed, and Recession: Where are The Financial Markets Heading?  Key Highlights  Even though the major stock indexes are plunging more than 20% below recent highs, the markets are still only down by about 60% of the average drawdown.  The S&P 500 is likely to plunge as much as 20% to 3,000 points, from current levels of 3,770, if the U.S. falls into recession. The earnings can likely fall an average of 14% during recessions.  Due to the Federal Reserve working to combat decades-high inflation with interest rate hikes, the economic growth is expected to be hit the hardest.  Until the recession arrives, the bear market will not be over. The market weakness is expected to continue over the span of the next three to six months as the US is facing very stubborn inflation readings.  Echoing concerns are being raised by several top business leaders and financial institutions due to the steeper-than-expected hike in key interest rates. This is expected to deter spending and make borrowing more expensive.  How did the US Economy suddenly become Fragile?  A few months ago, recession in the US seemed like a distant shot. However, this now looks like the crisis is hard to avoid. Earlier this year, the Fed delivered its biggest interest-rate hike in three decades. This move is intended to tackle the fight against inflation.  Soaring prices and the rising risk of recession are hurting Americans. While the cure is going to hurt, experts are predicting that it may take a recession to stamp out inflation.  Investors are now rushing to bet on this kind of bad outcome, sending stocks and bonds plunging. American households are feeling gloomier about the current economic situation. The crisis is unfolding at a juncture when the consumers in the US are still getting to terms with cash-flush and when jobless rates are near historic lows. The Fed’s own projections and other elements highlighted by the administration indicate that a recession remains unlikely.  Read more: Tech Stocks Slump is Triggering the Withdrawn of ESG Funds: Here's Why  Industries that will feel the Heat  High prices are deterring some consumer spending. Stocks tied to discretionary spending, including those in hospitality, retail, hotels, restaurants, and clothing, are being perceived at a higher risk of a downturn. Industries tied to the internet, payments, and durable household goods like appliances and computers are on the lower spectrum of the risk.  Major stock indexes are plunging into the bear market ahead of the Fed’s largest interest rate hike in 28 years. These gloomy sentiments are ushering in waves of layoffs among the booming technology and real estate companies. While the hike in interest rates by the Fed cannot stop the issues that are causing inflation on the supply side, the impact on the economy can, however, be averted.  Restaurants are most likely to be at risk of a pullback in spending. As per the survey by Morgan Stanley, roughly 75% of respondents to the survey said that they might cut back on dining out over the next six months. 60% of them said that they would opt for delivery and takeout from restaurants. Driving much of the inflationary gains, essential items, including gas and groceries, will see more resilient spending.  The Game of Rising Rates and Falling Wealth  The US economy is expected to fall into a mild recession by the end of 2022 as the Federal Reserve announced a rise in rates to tame prices. The financial conditions are likely to tighten further, and consumer sentiment is souring. Food and energy supply distortions are feeling the impact, and the global growth outlook is declining. This rapidly slowing growth momentum and Fed's commitment to resort to price stability are adding to the downward plunge and fueling a mild recession.  Excess savings and consumer balance sheets are likely to help mitigate the speed of economic contraction; however, monetary and fiscal policy may be constrained by high inflation. The unacceptably high rising prices are expected to stick with consumers through 2022, slowing down the growth of the US economy. With the risk of a recession in the US economy increasing, it will take several years for the administration to get back to normalizing the economic goal. While the monthly inflation rate through 2022 and the initial months of 2023 are expected to remain elevated, owing to the Fed's response to the rising risks.  The ongoing rate hikes will continue into 2023, but with a scarcely lower terminal rate of around 3.50-3.75%, as compared to the previous forecast of 3.75-4.00%.   Read more: How Will the Global Crypto and Stock Markets Recover from the Inevitable Doom Loop?  Key Takeaways  S&P’s P/E drop approaches the dot-com era’s slide at a faster clip.  Three 19% drawdowns in four years reflect a rare bout of volatility in the market.  Elevated prices are leading to unanchored price expectations.  The Federal Reserve will likely continue its hike in interest rates into 2023.  Final Thoughts  The US economy is experiencing a whirlwind blow. High savings for households, fat profits for organizations, and low costs to service debt are not hallmarks of an impending downturn. However, these factors are contributing to the recession somewhere between 25% and 35%. Even if the economy is expected to fall into a downturn, the economy will require time to bounce back and pull Biden’s presidential ratings with it.  However, the Fed's decision now holds the chances of rising recession risks. Banks including Deutsche Bank and Morgan Stanley are also warning clients of the fading economic landing and greater chances of a recession.  A downward plunge in 2023 is probably expected to weigh down the economic growth of the US economy. The possibility of recession arriving in 2024 is likely to be expected, making the situation even worse.  With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.    A leader in the BFSI space, SG Analytics assists businesses with insightful relevant research along with sophisticated technology solutions. Contact us today if you are in search of an efficient market research service provider to make critical data-driven decisions.     

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Overcoming the Shadow of The Pandemic Workplace

Reenergizing the Workplace: Ways to Manage and Overcome COVID fatigue

The COVID-19 crisis has taken a toll on the workforce globally. Everyone witnessed many hospitalizations and deaths as well as the collapse of several businesses across industries, a massive spike in unemployment, and food security issues. In response to this unavertable crisis, organizations achieved important achievements like redeploying talent, launching new models and products, enabling faster decision-making, and shifting their workplace operations online for efficiency. In this new normal scenario, employees became more engaged and energized as they tackled their ways to address challenging and important issues.   The COVID-19 crisis has reshaped the way businesses operate, and we may never go back to the way businesses were functional before. The new normal is now our everyday normal.   The shift in the work model due to the pandemic has increased our reliance upon technology tools to perform our everyday work. With the emergence of elements like remote schooling, virtual classes, and FaceTime chats with family and friends, the increase in screen time is contributing to technology burnout.  However, this advent of the COVID-19 pandemic also led to the rise of pandemic fatigue - a condition that is plaguing organizations and employees. In 2020, the world survived a global pandemic, a massive economic crisis, and widespread social unrest. These top forces are fundamentally reshaping our societies. They have accelerated technological innovation, business-model disruption, and workforce automation. Along with innovation, an epidemic of stress has also been building as the COVID-19 crisis is reaching its tipping point.   With the COVID-19 crisis dragging on, organizations and employees are entering a prolonged period of disillusionment, despair, and exhaustion that is likely to last long. The most significant aspect is that companies are waking up to the need for greater empathy and compassion towards establishing a workplace that can help unleash the full potential of the employees. Global trends are starting to turn to the old rules of management and introduce human-centered principles that put employees and people at the heart of the organization.  Read more: The Future of Work: The Hybrid Edition  Designing a Vision of the Future   The pandemic caused almost 60% of employees to rethink the balance between their work and personal lives. Workers need to be productive and healthy. Organizations are now working to provide people with the right resources, both on-site and remotely. Those resources include:   Digital maturity to drive employee innovation and collaboration  A higher degree of autonomy through a distributed working model  Positive culture and progressive health policies  Supportive leadership, which listens to employees   The pandemic brought a critical reality into focus. To better support the employee's well-being and personal development, organizations recognize workers’ needs and expectations. The pandemic also highlighted a need for progressive policies for mental health and well-being.  By employing and accepting the right tools as a part of normal life and hybrid work, businesses can avoid overburdening their employees, partners, and potential customers with technology and also assist them in recovering from ever-present fatigue. Here are a few strategies that can assist organizations in combatting technology fatigue.  Removing or limiting video conferencing calls  The video conferencing fatigue, also known as the "Zoom fatigue," has shown to have a negative impact. The reasons for this are the intensity of close-up eye contact, lack of mobility during the call, and the cognitive load required for constant non-verbal communication. To be mindful of these stressors, organizations, as well as management leaders, are now employing frameworks to limit calls and cancel those that can be covered through other forms of communication, restrict call topics to only the agenda and be understanding of the colleagues or customers who prefer to take them off-camera.    Employing mobility tools for advantage  The growth of a distributed workforce has compelled many companies to adopt new mobility tools to help their workforce stay connected. These mobility tools enable employees to connect in more flexible ways. For example, a mobile device makes it easier to go out for lunch or run an errand. Knowing that the individual is just a call away helps in providing people the space and time to disconnect as well as offering the ability to work from the office, at home or anywhere.  Integrating asynchronous collaborations  The workplace environment often constrains the employee to collaborate only with the team members when they are in the office. However, with new tools, businesses are now redefining the way they connect and work together. It is no longer about confining to a particular geographical area or time zone. Asynchronous collaboration like posting a whiteboard message with queries or inviting others to leave comments offers greater flexibility than scheduled calls. It offers a great way to encourage more participation.    Read more: Why Should Companies Develop Women Leadership to Influence Corporate ESG Operating Models?  Utilizing the full extent of collaboration tools  Collaboration platforms are a source of technological fatigue, but they are also a part of the solution. Several collaboration tools offer advanced features like enabling multiple users to edit a document simultaneously, and virtual whiteboarding assists in deeper collaboration among teams and topics. Employing a virtual breakout room also offers a more immersive and engaging meeting experience and is a vital tool for brainstorming.   Unleashing Employee Potential by Evolving the Organization’s Operating Model    Organizations are exploring ways to make work productive and easier by employing new norms in their operating model. Many leaders are including the practice of making the virtual working model permanent so that employees can maintain the flexibility they have become accustomed to.  The future of work is now taking shape after the Covid-19 pandemic. These changes are changing the relationship between employees and firms radically. Digital tools and mobility will enable the workforce to upskill emerging digital technologies while supporting the employee's state of well-being as well as productivity. To win in the future, organizations must adopt new models to avoid technological fatigue. Three shifts that need to be included are-   A switch from talent taker to talent maker.  To stop managing workers as if they are machines.   Offer workers a sense of belonging and purpose.   The pandemic has contributed to accelerating these trends. Enterprises are now working to build a vision of successful alliances that are intensely human and nurture the very best elements of creativity, empathy, and inspiring leadership at every level. More than ever, organizations are open to endeavor into new working aspects as they prepare to seize the opportunities to emerge stronger. Leaders are now creating a brighter future for their employees and organizations alike.  Read more: Tech Forecast for 2022: Trends That Will Shape the Technology Landscape   What does the future hold for Workplaces?   Just like the COVID-19 pandemic, technology fatigue is here to stay for the future. Today, organizations are exploring ways to make it more manageable along with demonstrating to the customers how they stand out from the competition. This will enable them to create more productive and energized teams, build work environments that are sought after, and become the people that customers can engage with ease.  Over the next coming years, businesses will explore even more innovative tools to help their employees stay more connected and to reduce technology fatigue in the workplace. Today, enterprises are working to incorporate ways to provide the much-needed breaks from screens and video calls that are so desperately needed. AI is being employed to filter out background noise and deliver automated meeting notes to help make business calls more efficient.  Organizations are also working towards incorporating metaverse-like environments to take work to a fully virtual state, thereby eliminating ways to avoid technology fatigue.  The future of work is evolving. With employees getting accustomed to the new normal, industries are embarking on new creative approaches to enhance workplace productivity. Experimentation around the work environment and talent productivity will help define the course ahead to rescue technology fatigue. And one thing is obvious: Organizations that cling to old ways of working are likely to struggle to stay relevant.  With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.    A leader in the Technology domain, SG Analytics partners with global technology enterprises across market research and scalable analytics. Contact us today if you are in search of combining market research, analytics, and technology capabilities to design compelling business outcomes driven by technology.       

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Money Funds the Next Target in Greenwashing War

The Fight Against Greenwashing: Are Money Funds the Next Target?

ESG-mandated sustainable investment assets are projected to make up half of all professionally managed assets globally by 2024. 1% of the world’s population owns 38% of total wealth. However, the world facing climate catastrophe comes as no surprise. Nearly 9 in 10 people globally are committed to building a more sustainable and equitable world. With building momentum, businesses are shifting towards redrawing the guiding principles of politics and economics.  The ESG funds sector has rapidly ballooned in size. Financial regulators have been slower to come up with ways to guard the sector. That has led to the creation of limbo for consumers as they are at risk of buying products that may be packaged as something they are not.  Sustainability is a complicated field that is advancing in real-time. However, it is difficult to stay on top of the verbiage and what these claims mean.  Economy rule-makers are pushing for better transparency from managers of money market funds. This is another ESG-related offering that is falling short on the standards front, with the struggle to keep and attract investors increasing rapidly. A sustainable framework to attract future investment, partners, and public support is emerging as a trend for all investors.  With a stern current pushing toward the agenda forward, companies cannot afford to ignore building sustainability considerations at the heart of operations. The integration of ESG or environmental, social, and governance factors into money funds has experienced a sudden surge in recent years. There are just $9 billion in US prime money funds with ESG names.  Read more: Green Finance: The Next Step to Align India's Climate Priorities  ESG: A Call to Action   2020 ushered in a heightened focus on ESG or environmental, social, and governance issues. The momentum had been slowly building to support corporate social responsibility, with businesses moving towards a major development. However, the pandemic and associated economic dislocation, along with the heightened social unrest, and climate change, have compelled organizations to plan for action on the environmental, social, and governance (ESG) agendas.  Financial firms are commencing to measure and disclose their efforts to support all stakeholders and provide a solid foundation to build a broader perspective. Organizations are now focused on resolving two questions:   What are the essential elements that are to be incorporated within the ESG framework?  What tools will assist the industries?  Global sustainable mutual fund assets have hit a record high, bolstered by new disclosure rules. However, the pace of net inflows slowed from the prior quarter, as per the data released by Morningstar. Funds focused on ESG, or environmental, social, and governance-related issues, witnessed their combined assets climb to $3.9 trillion at the end of September 2021. This often-overlooked part of the burgeoning ESG industry is likely to encounter greater scrutiny from regulators across the globe.  The loopholes would allow banks to continue to make new investments. But this scenario is poised to change due to the SEC’s recently proposed rules that require public organizations to track and disclose their emissions. This gap between the money funds’ claims and the reality of the investments has left investors and stockholders talking about the litigation on mis-selling in the US.   Understanding the Scenario  Money funds are among the least risky investments available as they hold the safest government and corporate-bond securities. Today the level of investment demand for ESG products exceeds the availability of bonds. As the yield climbs with central banks boosting interest rates around the world, the presumption is that more investors are likely to gravitate to money funds if stock markets continue to lose value.  While there are more and more ESG-related bonds and commercial paper programs, the supply is still too small to build a valid ESG-only portfolio. Like other facets of the ESG industry, money funds are more susceptible to greenwashing as more and more funds are proliferating in the market. Expanded ESG disclosures and third-party oversight to investigate funds in a standardized manner help reduce these risks.  Greenwashing usually occurs when organizations, people, or governments exaggerate or misrepresent their climate credentials. The term also includes issues when organizations overhype their ESG commitments in their sustainability framework.  The ESMA or European Securities and Market Authority is leading the way in cracking down on such mis-selling. In the recently published ESG supervisory briefing, ESMA has highlighted a framework to provide convergence across the EU in the supervision of investment funds with sustainability features.  ESG reporting disparities exist between different domains that lead to the creation of inconsistencies in reporting standards across the market. A more formulated prescriptive and standardized framework is vital to managing the disclosure regime.   Read more: New SEBI Guidelines to Tackle the ESG Ratings Conundrum in India – An Analysis  What does it mean to be a green organization?  A term widely used in label and market ESG funds; it carries a more legal weight than many firms have initially thought. At the COP26 climate summit in Glasgow, signatories committed to achieving the new greenhouse gas emissions targets by the end of the year. The legal standards were set to promote ESG funds reporting. The target is to restrict global warming to well below 2C and preferably to 1.5C, compared to the pre-industrial levels.  Launching ESG-themed products is gaining momentum as it is emerging as a much-needed area of growth. Branding funds as green enables businesses to tap into a huge wave of investors. Retail investors are focusing more on making a positive difference to the planet and targeting marketing investments that offer claims a fund’s documentation. For investors interested in capitalizing on the green transition, there are several options available for them.   ESG funds are popular, but the sector is rife with greenwashing. ESG investment prioritizes companies and bond issuers with high environmental, social, and governance standards. Investors globally are pouring investments into sustainable funds. Asset managers also continue to repurpose and rebrand conventional funds products and package them into sustainable offerings.  How can Organizations Stay Ahead of the Crisis?  To stay ahead of regulations, companies need to adopt the following measures:  Before making a carbon reduction claim, start measuring and reporting the emissions.  After integrating an emissions benchmark, prioritize areas where the emissions could be cut to employ a realistic reduction strategy.  Getting the employees involved. This presents an excellent opportunity to empower motivated employees to work towards tackling the issues.  Sharing data and reporting publicly. This helps build consumer and investor trust and highlights the significant steps that are being taken to avoid greenwashing.  Organizations globally are planning to achieve net-zero by 2030. While these changes take effect, it will still be up to companies to voluntarily share their sustainability efforts. The public still must realize whether companies have an ESG strategy in place and which organizations are paying to keep up with their competitors.   Read more: ESG Market in Canada Faces Greenwashing Risks Due to Poor Data  Navigating Potential Shocks  The road ahead for organizations will not be a smooth one, as they need to prepare for inevitable shocks that are likely to arise in years to come. Some of the most impactful challenges will include climate adaptation, manufacturing, the changing role of the workforce, and reducing inequality. Many organizations are exploring possibilities of the materialization of elements that can spur the development of others. This has made it more vital for industry leaders to prepare for all of them.   These opportunities present a daunting list. From an ESG perspective, none of the aspects should be considered in isolation from one another. Instead of managing ESG in vertical silos, organizational leaders should shift their perspective to a multidimensional view and examine the risks present in all three areas.  In this world of greenwashing, responsible consumers and companies are feeling the need to up their environmental literacy. While some deliberately blur the truth, others struggle to understand ways to deliver on their promise of cutting down on emissions. By employing provision, organizations can make provisions to combat greenwashing in money market funds, along with the entire range of stock, bond, and other funds.  With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.     A leader in ESG Consulting services, SG Analytics offers bespoke sustainability consulting services and research support for informed decision-making. Contact us today if you are in search of an efficient ESG integration and management solution provider to boost your sustainable performance.  

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climate change and water level rising in the UK

Britain is shrinking due to climate changes - Here is everything you need to know!

UK has experienced 2020 (BBC) as the fifth wettest, ninth sunniest, and the third hottest year on record.  One of the most challenging issues faced by climate specialists is predicting the effects of global warming. If Britain does not take precautions against more extreme weather brought on by climate change, it will see disastrous floods similar to those that swamped portions of Germany this summer. Climate change is happening now. Long-term climatic changes are referred to as climate change, which is typically used concerning anthropogenic climate change. It is one of the greatest issues of our time and has already started to harm our planet and way of life irreversibly.  Numerous variables influence the natural processes that result in rain, hail, and snowstorms, as well as the rising sea level and other predicted repercussions of global warming. There is no doubt about the current global warming rating or the consequences that would result from it continuing.  Britain is Shrinking  Britain has been getting smaller for some time, and the island's biggest issue is coastal and land erosion. The government has already informed several regions in the UK that it will not be able to shield them from the rising floods and shifting weather. In the UK, London is especially sensitive to climate change. By 2100, hundreds of dwellings are predicted to be underwater due to the ongoing erosion, drastically reducing the amount of land that can be used.  To guarantee that the UK is prepared to face the difficulties of a warming world, we must continue to strengthen adaptation objectives as we step up our efforts to reach net zero. The papers have warned of the escalating global temperatures brought on by the changing climate, as well as the increasing sea levels, higher river flows, and substantial stresses on England's public water supply. Britain’s coastal communities play a vital role in Britain’s economy.  Reasons for Climate Change in the UK  The UK has been 0.9C warmer and 6% wetter during the past years (BBC), according to the experts. It's not simply the heat that climate change brings. More moisture in the air results from warmer temperatures, which also means more intense storms and flooding. And even cold spells are believed to be caused by the change in the atmosphere. Extreme weather is one way that some of us have already felt the consequences of climate change. Britain’s coastal communities are at huge risk and are needed to be saved.  The temperature in the UK has already climbed. Climate change is having a big impact on all over the world. Even though they may appear welcome, unrelenting summer heatwaves are a major consequence of climate change in the UK. Even more, wildfires are spreading around the nation as a result of them.  Here are some of the reasons for Climate Change in the UK -  1. Burning of Fossil Fuels  The amount of heat trapped in the atmosphere has grown as a result of human activities like the burning of fossil fuels and forest chopping. Extreme weather is expected to worsen globally and harm people, animals, and plants. In the UK, the environment, economy, and public services will all be impacted by climate change. More intense weather will cause the climate to alter, becoming hotter and wetter.  Carbon dioxide is released into the atmosphere in massive quantities when the fuels are burnt. Even while experts believe we need a widespread transition to renewable energy and efficiency, fossil fuel businesses continue to be major polluters, producing and marketing fossil fuel goods. It is one of the biggest risks to children's health and future. They have a significant impact on both environmental injustice and social inequality.  2. Deforestation  Despite all the good that woods do for the environment, they are nevertheless being destroyed at a startling rate. Deforestation causes the loss of several forests every year. One of the main factors that is leading to deforestation is the practice of agriculture. Deforestation has been facilitated by fast food chains. Deforestation is frequently brought on by logging when trees are taken down to make paper. The last significant factor in deforestation is housing.  Forests serve a significant role in a variety of ways, including helping to slow down global warming, housing numerous plant and animal species, and supplying food, medicine, and livelihoods for people all over the world. Even though there are numerous reasons to be concerned about the state of the world's forests, many people remain optimistic that forests may still be saved with the proper policy and perception reforms.   3. Greenhouse Gas  The phrase "greenhouse effect" is used to describe how the Earth is warming. Eliminating carbon emissions is one way we can do our part because greenhouse gases are a key cause of sea level rise. Let's face it, chemicals are essential to our survival. Yes, the cosmetics and laundry detergents we use include chemicals. And then there are the things we never see, like the chemicals and polymers used to construct our homes and automobiles.  Oceans have suffered as a result of people continuing to release greenhouse gases into the sky. The amount of greenhouse gas emissions in the upcoming decades is equally difficult to forecast since it depends on political choices and technical developments. Sadly, the increase in sea levels worldwide hit a record high of 3.6 inches in 2020 alone, and the pace of rising has doubled for the majority of the 20th century.  4. Chemical Industries  One of the most significant sources of environmental degradation is the chemical sector. The pollution caused by industrial activities, which results in gas emissions, wastewater that pollutes natural ponds and underground water, and solid and slurry waste that, if left untreated, pollutes the soil and underground water, is the primary way that the chemical industry affects the environment and lifestyle. The industry leads to one of the most crucial reasons for climate change.  The demand for new infrastructure is expected to surge as a result of global urbanization and economic development. To limit the negative effects of industry on the environment and, as far as is practical, to restore nature's original conditions, it is obvious that worldwide solutions must be sought.  Risks related to Climate Change in Britain -   1. Homes and Lives  According to the researchers' studies, it would be difficult or unprofitable to rescue many homes, forcing whole towns to relocate inland. Given the speed at which the climate is breaking down, the worth of the properties that are in danger is in the tens of billions of pounds, and the sea level rises that would cause the floods are now all but certain.  Some properties might not be rescued since doing so would be highly expensive. Examples of such precautions include seawalls and other coastal defenses. While Scotland is rising, portions of England, Wales, and southern Ireland are dropping. North Somerset, Sedgemoor, Wyre, and Swale are some of the regions of Britain that are most in danger.  2. Sea Level  Some coastal dwellers across the world are disproportionately exposed as sea levels rise. By 2050, it is anticipated that sea levels along the English coast would have risen by around 35 cm. According to recent research, 200,000 houses and businesses in England might be entirely submerged in water by 2050 due to the rising sea levels throughout the world. Additionally, foreshores are eroding, which raises the waves, particularly during storms.  The risk of flooding is increasing significantly in many areas of the UK. People are losing their homes and lives as storms and flooding become increasingly severe and frequent. The coasts are progressively deteriorating as a result of sea-level rise. The effects of all these changes on plant and animal species are negative.  Also, Read - How is Climate Change Impacting the UK Summer 2022  Conclusion  The study predicts that over the next few decades, summer rainfall would decline but winter rainfall will grow, even with a 2 degrees Celsius (3.6 degrees Fahrenheit) temperature rise relative to preindustrial levels. In England, 3 million homes might experience surface water flooding in areas without early warning systems. By cutting greenhouse gas emissions, all of these effects of climate change on the UK may be avoided. This entails, among other things, ceasing the use of oil and gas and switching to renewable energy. The good news is that scientists now think pollution reductions would have an immediate effect on temperatures.  We have an opportunity to halt the increase even though we cannot stop it. By 2050, more than a million residents in Britain will be at risk of flooding if we don't collectively modify our living patterns. Instead of "living with the penalties of inaction," it urged the government, industry, and larger society to implement adaptation and mitigation solutions. All regions of the UK are expected to experience significant changes in weather and climate patterns over the next 30 years (Climate Consulting) if no action is made to combat climate change.  With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.       A leader in ESG Consulting services, SG Analytics offers bespoke sustainability consulting services and research support for informed decision-making. Contact us today if you are in search of an efficient ESG integration and management solution provider to boost your sustainable performance.   

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Price of war

Russia’s War Against Ukraine – What is the Price of War?

Countries across the globe are paying a heavy price for Russia’s war in Ukraine. Deemed a humanitarian disaster, the war has led to the killing of thousands and forced millions to flee from their homes. The war has also triggered global economic unrest by onsetting the cost-of-living crisis.  When coupled with China’s zero-COVID policy, the war has led the global economy on a path of slower growth and higher inflation. This is being largely driven by steep increases in the price of energy and food and is raising serious security risks for countries with poor economies.  In OECD’s latest Economic Outlook, they warned that the world economy would have to pay a hefty price for Russia's invasion of Ukraine as it slashed its growth forecast in 2022 and is projecting higher inflation.  A Paris-based organization, OECD or Organization for Economic Co-operation and Development, represents 38 most developed countries. Their latest institution predicted lower GDP growth due to the conflict that has sent food and energy prices soaring. The gloomy assessment offers a deeper and broader insight into the economic fallout from Russia’s invasion. In the report, OECD offers a detailed view of the global fiscal and monetary policies.   The OECD doubled its forecast for inflation among its members, which include the United States, Australia, Japan, and Latin American and European nations. The world is expected to pay a huge price for Russia's war against Ukraine, with the humanitarian crisis unfolding before our eyes. The early effects of the war are being felt in the surging prices. The effects have forced central banks to tighten their monetary policy. Meanwhile, governments are reconsidering spending plans as they attempt to shelter households.  Read more: The War in Ukraine: Ripples Across the World  Key Highlights from the OECD report:  Europe is being perceived as one of the regions that are likely to be hit the hardest due to the war in Ukraine, as its economies are struggling to wean themselves due to Russian fuel sanctions  Low-income households are at higher risk due to surging prices of food and energy supply  Sharp increases in rates could slow down economic growth  China’s Covid Zero policy persists in weighing on the global economic outlook  The recommendations emphasized in the OECD report include:  Additional aid and global cooperation on logistics to avert the food supply crisis.  Targeted support from governments for households that are hit the hardest due to the rising cost of living  Signals from central banks that they will not allow inflation to spread.  US monetary policy is expected to tighten faster as prices are driven by over-buoyant demand.  More solidarity in Europe on energy spending  Trade to be kept open to ensure diverse value chains for the green transition.  The Impact on Global Action  The war in Ukraine has forced the global economy to encompass weaker growth, stronger inflation, and potentially long-lasting damage to the supply value chain. Rising inflation is also posing an additional challenge to this inclusive recovery. Inflation is disproportionally affecting low-income households that spend a large share of their income on food items.   The decline in real incomes is pronounced in developing countries, where poverty is more prevalent, and wage growth is constrained for vulnerable groups. Surging food inflation is worsening food insecurity as developing countries are struggling with economic shocks from the pandemic. Central banks globally are unleashing a greater amount of policy firepower as they are striving to combat unrelenting inflationary pressures.   The war in Ukraine is unfolding at a time when global CO2 emission is at an all-time high. This upward trend came in after a temporary drop in the first half of 2020 due to responses to the COVID-19 pandemic. Total greenhouse gas emissions in 2019 reached nearly 59 gigatonnes of carbon dioxide equivalent (GtCO2-eq) units. The remaining carbon budget, consistent with a 50 percent chance of limiting global warming to 1.50C, has been estimated at 500 GtCO2-eq units. This is being perceived as a short-term increase in emissions that is even more problematic. Greenhouse gas emissions are expected to increase if no replacement is found.  The worsening energy and food crises are dragging down global economic growth. Sustained price increases in global energy markets are accelerating the adoption of renewables and efficient alternatives. This has led to an increase in the cost of production of batteries. However, supply chain issues are expected to undermine demand for electric vehicles.  Read more: The U.S. & the UK Announce Ban on Russian Oil Imports; What is the Future of Global Energy Supply?  Russia's war is imposing a heavy price on the global economy. The crisis has rattled commodity markets, exacerbating supply-side shocks. In 2022, the growth in global trade is projected to slow down after a strong rebound in 2021. The conflict is disrupting exports of crude oil, natural gas, fertilizer, grains, and metals, driving energy, food, and commodity prices. The Russian Federation and Ukraine are key suppliers of agricultural goods. They account for 25 percent of global wheat exports, 16 percent of corn exports, and almost 56 percent of sunflower oil exports.  Reshaping the Global Landscape  The war in Ukraine and the economic sanctions imposed on the Russian Federation are fundamentally reshaping the global economic landscape. The conflict has roiled global markets and propelled investment as well as energy security concerns to the forefront. Governments around the world are employing measures to shield households and businesses from the effects. In addition to offering direct income support to low-income households, measures are being taken to cut value-added taxes on energy consumption and other cost subsidies.   The new OECD report indicates the large and global impact of war on inflation, which has already reached 40-year highs in countries including Germany, the United Kingdom, and the United States.   Due to the escalating prices, countries are now looking to expand their domestic energy supplies. However, these efforts are likely to result in increased fossil fuel production.  Higher prices and growing energy security concerns have prompted the United States, the world’s largest producer of oil and natural gas, to increase its drilling activities. Meanwhile, the U.S. Government has also announced the release of 1 million barrels of crude oil every day for a duration of six months to bring energy prices down.  High food and energy prices, along with the continued worsening of supply-chain troubles, indicate that consumer price inflation will peak at higher levels than previously foreseen. The sharp rise in prices is undermining purchasing power, thereby forcing lower-income households globally to cut back on other expenses to afford basic energy and food needs.   The gradual reduction in supply chain and commodity price pressures, as well as the impact of rising interest rates, is predicted to be felt through 2023. The core inflation is projected to remain at or above central bank objectives in major economies.  Read more: Russia-Ukraine Crisis; Global Stocks Plunge; Inflation Risk Looms; What's Happening?  Key Takeaways  The Russia-Ukraine war is slowing the global economic recovery  Inflationary pressures have intensified, weakening growth prospects  The cost-of-living crisis is expected to cause hardship and risks of famine  The war in Ukraine will give rise to a stronger inflation  Central banks are facing a delicate balancing act  Final Thoughts  The war is hurting economic growth globally. The effects are being felt by Europe the most because it is more exposed to war through trade and energy links. The OECD cautioned that the economic turmoil is expected to hit the poor the hardest. The war is disrupting supplies of food like wheat and energy, for which Russia and Ukraine are major global suppliers.  The OECD also raised the warning about poor countries farther afield facing food shortages. The food situation in low-income countries is expected to be hit the most. It is fanning inflation for those with disposable income and living standards. The Russia-Ukraine war is sending shockwaves all the way to countries across the globe. The war is expected to even spark starvation, giving rise to political unrest and turmoil.  First, due to the pandemic and then the war, countries globally are facing the heat of economic unrest. The current situation highlights the clear risks of growth slowing down more sharply than expected and inflationary pressures intensifying further. The longer the unrest due to the war lasts, the longer the economy along with supply chains will be disrupted, and the less there would be an appetite for global investment.  With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.       A leader in Market Research services, SG Analytics enables organizations to achieve actionable insights into products, technology, customers, competition, and the marketplace to make insight-driven decisions. Contact us today if you are an enterprise looking to make critical data-driven decisions to prompt accelerated growth and breakthrough performance.    

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