In the ESG market and policy drivers section, the OTM cites McKinsey & Company’s research, which assessed sectoral vulnerability to government intervention in sustainability transitions. It reports:
“Thepharmaceutical industry exhibits the lowest proportion of profits at riskfrom state intervention due to its regulated nature and alignment with health and wellbeing outcomes.”
In contrast, “automotive” and “banking” sectors face higher exposure due to stricter emissions rules, consumer protection laws, and financial regulation. The extract further explains that industries with social or environmental externalities are more exposed to political pressure, while those already delivering positive social outcomes (e.g., healthcare) face less intervention risk.
Therefore, the verified correct choice isoption C — Pharmaceuticals.
????Reference:2021-Final-Book.pdf, Chapter 2 — The ESG Market (Market Drivers and Regulatory Trends section, citing McKinsey 2020 analysis).
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