Strategic Focus: How Corporations Can Leverage Software to Manage ESG Risks

Report

Corporate Sustainability Leaders

Kim Knickle

Jessica Pransky

22 Dec, 2022

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Executive Summary

Businesses are under immense pressure to manage a myriad of ESG risks from an ever-increasing number of stakeholders. To manage these risks strategically and make effective business decisions, firms must collect and track data on an ongoing basis. Although a recent Verdantix survey indicated that firms are still heavily reliant on spreadsheets for managing certain aspects of ESG risk, a growing number of organizations are expected to turn towards digital solutions to help them with aspects of their ESG risk programmes. This report provides an overview of the variety and complexity of ESG-related risks faced by firms, as well as the types of digital solutions corporate leaders can use to best manage these risks.

Table of contents

Understanding The Importance Of Effective ESG Risk Management
Firms Need To Understand A Myriad Of Risks To Inform Their Sustainability Programmes
A Diverse Set Of Buyers Will Look for Digital Solutions To Manage ESG Risks
Numerous Digital Solutions Are Available To Help Firms Manage ESG Risks

Table of figures

Figure 1. Main Categories Of ESG risk
Figure 2. Examples Of ESG Risk Factors
Figure 3. Examples Of Financial Impacts Related To ESG Risks

Organisations mentioned

Amazon, Archer Integrated Risk Management, BlackRock, Blue Cross Blue Shield Association, Boohoo, Boston Consulting Group, Brand24, Carlsberg, Ceridian, Climate X, Datamaran, Diversio, DuPont, Federal Trade Commission, Global Reporting Initiative (GRI), Gol Airlines, Higg, Impact ROI, Intelex, iPoint, J.M. Smucker, Jupiter Intelligence, Kohl’s, MarketPsych, National Commission for Data Protection, NatureMetrics, NAVEX, OneTRust, RepRisk, RepTrak, RS Metrics, Saint-Gobain, Sphera, Staffing Solutions of WNY, Sustainability Accounting Standards Board (SASB), Task Force on Climate-related Financial Disclosures (TCFD), Taskforce on Nature-related Financial Disclosures (TNFD), Toyota, US Department of Justice, US Environmental Protection Agency (EPA), US Equal Employment Opportunity Commission, US Federal Trade Commission, US Navy, US Securities Exchange Commission (SEC), VelocityEHS, Walmart, World Economic Forum

About the Authors

Kim Knickle

Research Director

Kim Knickle is a Research Director at Verdantix, bringing more than two decades of analyst experience to the evolving world of sustainability. Her current research spans ESG a...

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Jessica Pransky

Principal Analyst

Jessica is a Principal Analyst at Verdantix, specializing in providing insights to sustainability leaders and analysing ESG and sustainability reporting software. She advises ...

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