For many companies, environmental, social, and governance (ESG) issues are top of mind. In recent years, organizations of all kinds are seeing the benefit of examining their values and how those values coincide with their day-to-day operations. To aid with this, we are looking at business issues from a variety of perspectives to help you grow with ESG top of mind. This is an exciting time, full of potential for positive change.
As investors, consumers, and other stakeholders prioritize sustainability, many companies see the benefit of using ESG to inform strategic goals, operational execution, and the reporting of sustainable business practices.
How do you measure ESG risk?
While ESG isn’t a new concept, the increased focus on ESG performance is. This has given rise to a number of issues that companies must be considered more thoughtfully, such as:
- Resource availability
- Ethical behavior
- Biodiversity impacts
This, in turn, requires organizations to focus inward on the internal oversight mechanisms, governance, and culture required to manage these risks. With an evolving regulatory landscape, mishandled or unaddressed ESG risks can result in:
- Reputational damage
- Legal action
- A business’ profitability and long term viability
