Fidelity just published an article titled “Cybersecurity: A growing risk”. They note that the threat of Russian cyberattacks highlights vulnerabilities across industries. I’m quoting a small section and I suggest you read the rest of the article here.
Why cybersecurity is material to all industries
At Fidelity, we view cybersecurity as a material consideration across its proprietary environmental, social, and governance (ESG) research and ratings.
For example, within the “E,” cyberthreats are relevant to drinking water and wastewater systems that are infrastructure-intensive; in the “S,” lax supply-chain management can hurt data security; and in the “G,” cyberattacks can disrupt business operations, hurt share prices, and threaten management. We have found that cybersecurity is impacting every industry, in part due to accelerated trends in digitization and use of the cloud.
Utilities and energy companies have traditionally emphasized physical security of their assets over cybersecurity, but we expect the trend to shift for a number of reasons. First, critical infrastructure has increasingly been a target for cyber and ransomware attacks. Second, the increased connection of smart devices, coupled with legacy infrastructure that was not built to be connected to the internet, elevates potential vulnerabilities. Third, the Biden administration and Department of Energy recently issued a “100-Day Plan for Cybersecurity” for the electric power sector to identify and deploy new technology to identify and prevent such attacks.