The prevalence of ESG-related risks has steadily increased while the more conventional economic, geopolitical and Technological risks have become less dominant. According to World Economic Forum’s The Global Risks Report 2018 Environmental Risks would be dominant next to Cyber Risks over the next decade. Companies that are demonstrably prepared for these shocks can better mitigate downside Risks both short- and long-term, capture investor interest, and establish the long-term value of ESG management. Integrating ESG information with financial data and analytics supports investment decisions of investors for overall Business growth and sustainability.
Emerging ESG risks and why Companies need to have real-time visibility into them
A recent article in WSJ puts focus on how investors globally are using a scoring system for a Company’s ESG (Environmental, Social and Governance) Strategy. Companies who efficiently incorporate an Agile and Automated system for managing ESG Risks and turn them into opportunities can be more confident disclosing information to investors, demonstrating their Sustainability Strategy and Resilience. The question here is how can companies manage ESG Risks and opportunities?
Integrating ESG factors into Risk management strategies
While the challenges are many, the Business case to integrate sustainability into Enterprise Risk management (ERM) has become an imperative. Risk management methodology that incorporates key metrics,including ESG can assist sustainable Businesses be more successful. Businesses interested in understanding, managing and reporting on ESG Risks and Opportunities should adopt an Agile and Automated Framework to improve ESG Performance across Sectors and Geographies.
ESG Risk Management enabled with 360 degree visibility, continuous monitoring and complemented with Geo-spatial mapping using Google Earth and Risk Severity Analysis enables viewing Risks across multiple dimensions and various Frameworks. These are the areas that our Chairman and CEO Bhavesh Bhagat will be addressing at the 2018 NACD Global Board Leaders’ Summit, at an ESG Panel discussion along with fellow Directors from other Industry Verticals. Join this exciting discussion on October 2nd at Marriott Marquis, Washington DC.
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