Horizon scanning

CAPITAL FLOWS

As markets settle into a high interest rate environment, we expect activity to pick up this year. We are cautiously optimistic that 2024 will see increased activity in M&A and capital markets. With sponsors sitting on unprecedented levels of dry powder, capital will likely get back into flow. However, this does not come without its challenges; regulatory headwinds approaching from heightened merger control and foreign direct investment regimes, amongst others which are explored within this theme.

The articles in this theme offer insight on the 2024 capital flows landscape internationally.

GOVERNANCE & SUSTAINABILITY

With ever increasing regulation, businesses are expected in 2024 to shift towards the implementation of sustainability strategies with pressure from stakeholders to demonstrate progress. A focus on transparency and accountability underpins the latest legislation, which seeks to combat greenwashing, corporate crime, and human rights abuse, calling attention to the impact business has on people and planet. In the UK, the audit and corporate governance reforms are starting a new chapter.

The articles in this theme aim to help navigate the landscape for governance and sustainability in 2024.

ENERGY TRANSITION

It is estimated that the global net zero economy requires an average of US$3.4 trillion capital investment a year to 2050 to hold global warming at 1.5°C. This represents an enormous opportunity for sponsors, lenders, and corporates alike. Solutions go beyond traditional clean energy technologies like wind and solar power, with exciting opportunities emerging in Hydrogen and Carbon Capture, Utilisation and Storage.

The articles in this theme intend to identify new angles for corporate decarbonisation and investment opportunities.

DIGITAL

The rate of change in the digital landscape shows no signs of slowing in 2024. While this can make it difficult for laws to keep pace, the drive to regulate means existing laws are evolving, new rules are being agreed and ‘soft regulation’ is more important than ever. The race to establish innovation friendly AI regulation in a globally competitive market is an example of this. However, developments bring both opportunities and challenges - cyber risks are increasing, digital transformation projects carry dangers and antitrust agencies are proactively monitoring evolving tech markets to identify potential future competition concerns.

CRISIS MANAGEMENT

In 2024, a nuanced exploration of the risk landscape is more relevant than ever. While shareholder activism and cyber-attacks continue to pose persistent challenges, our series sheds light on new and emerging risks. These include strategic responses to evolving legal challenges in shareholder litigation, regulatory nuances in competition and consumer law enforcement, and insights into emerging trends in collective proceedings. This series also explores the intricacies that come with managing internal crisis with workplace misconduct.

The articles in this theme are designed to help inform approach to risk and crisis management in 2024.