ESG Risk Management Consulting
Environmental, Social And Governance (ESG) Risks Are Being Used Increasingly By The Investor Community To Assess The Sustainability And Risk Profile Of Companies
ESG risk management can have a range of impacts on an organization’s financial performance and its underlying shareholder value. Multiple bodies of research point to a positive correlation between financial performance and strong corporate ESG risk management policies and practices.
ESG risks are real and so identifying and thereafter managing and mitigating them can help reduce costs. Conversely, failing to adopt a comprehensive ESG risk management approach to identify, report, manage and / or mitigate these ESG risks can lead to increased costs.
Equally, a well-considered strategic review of your organization’s ESG risk landscape can reap financial rewards through opportunity identification.
Whereas Governance factors have been a feature of the corporate agenda for the longest time, it was in 2020 when we saw long standing Social issues such as racial and other inequalities being firmly thrust onto board and executive committee agendas around the world.
And on the Environmental front, we are witnessing planet earth on it’s accelerated path to increasingly intense climate-related events at the same time as our window of opportunity to remedy the situation and act to avoid widespread economic, physical and social dislocation and devastation is rapidly closing.
ESG Risks
Environmental Risks
Environmental risk considerations include climate change mitigation and adaptation, greenhouse gas (GHG) emissions, water security, waste, pollution, resource utilization & depletion and deforestation.
Social Risks
Social risk considerations include inequalities, diversity & inclusion, employee relations, health & safety and working conditions.
Governance Risks
Governance risk considerations include executive remuneration, board diversity and structure, donations and political lobbying, and bribery and corruption.
Contact us today to discuss your ESG Risks needs
Our ESG Consulting Services
- A well-considered ESG strategy clarifies and establishes direction and priorities and defines what it will take to achieve competitive advantage and business success.
- A comprehensive ESG strategy outlines how an organization intends to allocate and use its scarce resources including its financial and material assets.
ESG Risk
Strategy
- Identifies macro-level risks and opportunities that can impact your organization.
- Assesses and determines the climate component(s) within pre-acquisition due diligence.
- Identifying portfolio holdings with the highest exposure to climate change.
ESG Risk
Management
- Develops and implements a process to identify, assess, and respond to climate-related risks.
- Ensures that all climate-related risks that may impact your organization’s strategic and operational plans are clearly identified, managed, and reported.
ESG Risk
Governance
- Establishes climate oversight and assessment responsibilities at the board and executive management levels.
- Ensure that climate-related risk owners and sustainability practitioners have been involved as appropriate to ensure an effective risk identification process.
We provide a comprehensive ESG Initial Evaluation
There are several ways we can help you manage your ESG (including climate-related) risks. If you are looking to better understand the spectrum of your ESG (including climate-related) risks, we typically recommend an Initial ESG Assessment for your organization. This assessment provides you with a very quick but thorough analysis of your organizational readiness to manage risks across the entire ESG spectrum of risks, including those relating to climate, water utilization, waste management, health and safety, diversity & inclusion, and governance.
Our Approach
Step 1
Contact us and schedule a meeting with one of our consultants
Step 2
Complete one of our online evaluation
Step 3
You’ll receive your detailed report within 48 hours
Within 24 hours of completing the evaluation, you will receive an Initial ESG Evaluation Report based on your responses to the online questionnaire. This provides you an outline of your organizational preparedness to manage ESG and tells you what needs to be done along several dimensions including: Governance, Strategy, Risk Management and Metrics & Targets. This report will be your guide as you develop your roadmap and thereafter report on and manage your ESG risks. This report will be your guide as you develop your roadmap and thereafter report on and manage your ESG / climate-related risks.
Our unique combination of sustainability, risk management and global financial services are reinforced and underpinned by our:
Focus
Experience
Understanding
Independence
Focus
Our focus is exclusively on ESG Strategy and ESG Risk Management. We work with organizations to develop an ESG Strategy that is seamlessly interwoven with their business strategy. We also help organizations identify, measure, and manage ESG risks and undertake ESG risk mitigation.
Whether you need an ESG strategy or a review of ESG Governance or ESG Risk Management, we can help.
Experience
We bring decades of experience in global financial services and with that strong business acumen gained throughout the world. The global experience has provided a solid foundation for understanding and appreciating cultural awareness.
We bring years of experience in board governance including serving on internal, external, regulated, regulatory, and nonprofit boards.
Understanding
We understand that ESG risks can be transverse in nature and therefore are not always able to be neatly compartmentalized and assigned to a specific area or department for resolution.
We have a deep understanding of the spectrum of ESG risks: from physical risks to transition risks. We understand how assets can have exposure and vulnerability to these risks.
We understand the interconnectedness of environmental, social and governance risks and the interplay with the geopolitical environment.
Independence
Foundational to our approach and focus is our independent thinking.
With our focus being entirely and exclusively on ESG Strategy and ESG Risk Management and its component and related parts, we provide guidance and recommendations by gaining a thorough understanding of your business and thereafter delivering to you specific, measurable and actionable recommendations that reflect the reality of your business environment and which are tightly aligned to your business needs and objectives.
ESG Risk Management Framework
We utilize a number of risk management frameworks. The combination of these judiciously blended ESG risk frameworks combined with a high level of expertise and commercial pragmatism provides a robust and very compelling approach to ESG risk management for any organization.
Task Force on Climate-related Financial Disclosures - TCFD
The Financial Stability Board (FSB) established the TCFD to develop recommendations for more effective climate-related disclosures that could promote more informed investment, credit, and insurance underwriting decisions and, in turn, enable stakeholders to understand better the concentrations of carbon-related assets in the financial sector and the financial system’s exposures to climate-related risks.
TCFD is committed to market transparency and stability and believes that better information will allow companies to incorporate climate-related risks and opportunities into their risk management and strategic planning processes.
Network for Greening of the Financial System - NGFS
The Network’s purpose is to help strengthen the global response required to meet the goals of the Paris agreement and to enhance the role of the financial system to manage risks and mobilize capital for green and low-carbon investments in the broader context of environmentally sustainable development. The Network defines and promotes best practices to be implemented within and outside of the Membership of the NGFS and conducts or commissions analytical work on green finance.
Principles for Responsible Investment - PRI
Principles for Responsible Investment (PRI) is a United Nations-supported international network of investors working together to implement its six aspirational principles, often referenced as “the Principles”.
United Nations Environment Program Finance Initiative - UNEP FI
The United Nations Environment Programme Finance Initiative (UNEPFI) is a global partnership established between the United Nations Environment Program and the financial sector, established in 1992.
Sustainability Accounting Standards Board
The Sustainability Accounting Standards Board (SASB) is an independent nonprofit organization that sets standards to guide the disclosure of financially material sustainability information by companies to their investors. SASB Standards identify the subset of environmental, social, and governance (ESG) issues most relevant to financial performance in each of 77 industries.
United Nations Sustainable Development Goals
The Sustainable Development Goals (SDGs) are an aggressive, but achievable group of objectives that, if attained, will make the world a much better place. The 17 goals seek to end poverty, ensure food security, make access to healthcare universal, protect the environment, and much more. Success will require meaningful engagement by charities, for-profit corporations and governments.
Committee of Sponsoring Organizations of the Treadway Commission. World Business Council for Sustainable Development - COSO WBCSD
Entities, including businesses, governments and non-profits, face an evolving landscape of environmental, social and governance (ESG)-related risks that can impact their profitability, success and even survival. Given the unique impacts and dependencies of ESG-related risks, COSO and WBCSD have partnered to develop guidance to help entities better understand the full spectrum of these risks and to manage and disclose them effectively.
