In an increasingly digital and interconnected global economy, cyber risk is greatly amplified and poses a significant enterprise risk to business. Consequently, cybersecurity has emerged as a key threat to business sustainability and an important factor when addressing ESG considerations. This calls for a paradigm shift in how companies manage both cybersecurity and ESG.
The Impact of Cybersecurity on ESG
Cyber risk permeates almost every aspect of digital business and can fundamentally disrupt the efficacy of many ESG strategies and practices.
For example, under the environmental pillar of ESG, cybersecurity is essential for protecting the digital infrastructure of environmental sustainability, including the technologies driving renewable energy generation, smart grids and electric vehicles. In terms of the social component of ESG, cyber risk is a threat to the systems and processes that support national security, public health and electoral processes. Under the governance component of ESG, cybersecurity safeguards the technology and data necessary for financial reporting, administrative systems and DEI initiatives.
Effective protection against cyber…
