What Are ESG Risks
Environmental, Social and Governance
Environmental, Social and Governance (ESG) factors are being used increasingly by the investor community to assess the sustainability and risk profile of companies. ESG considerations can have a range of impacts on an organization’s financial performance and underlying shareholder value. Multiple bodies of research point to a positive correlation between financial performance and strong corporate ESG policies and practices.
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 an 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.
Environmental aspects include how a business performs as a steward of our natural environment, and includes:
Social aspects consider how a company treats people, and includes:
Governance addresses how a corporation governs and polices itself, and includes :
Find out more about why climate change is a source of significant risk to global financial stability
Get ahead of the increasing pressures and demonstrate and display your social credentials
Ensure your organization is on the path towards strong company governance structures that will drive value-creation