Strategic Focus: Trends In ESG Risk Management
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Executive Summary
ESG risk management is becoming an essential component of corporates’ sustainability strategies. ESG risks are multi-faceted and complex, and can have ripple effects, impacting numerous stakeholders within an organization. As such, many businesses struggle with their effective management. Increasingly, firms are starting to incorporate ESG risks into their enterprise risk management (ERM) frameworks. This report provides an overview of trends related to the financial, operational and strategic impacts of five broad risk categories: climate risk to physical assets; governance-related risks; ESG-related compliance risks; reputational risks; and supply-chain-related risks.Financial impacts are expected to increase in the short term
ESG factors cause firms to rethink their daily operations and staffing needs
Firms must develop proactive strategies to mitigate the impacts of ESG risks
Figure 2. Definition of ESG-related risks
About the Authors
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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Bill Pennington
VP Research
Bill is VP Research at Verdantix, where he leads analysis on the evolving and interconnected landscapes of EHS, quality, AI and enterprise risk management. His research helps ...
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