Companies are eager to establish their ESG programs, and it’s not hard to understand why. But as a trio of experts from FTI Consulting detail, there are many reasons why it’s wise to take some measured steps before diving into the deep end.
FTI Consulting’s Beth Junell, Brian Ong and Edith Wong co-authored this article.
Hardly a day goes by without headlines proclaiming the importance of ESG programs. The pervasive influence of ESG initiatives is shaping investors’ strategies, altering customer behaviors and prompting companies to reimagine how they approach business. In fact, global sustainable fund assets reached $2.7 trillion by the end of 2021; and in the U.S. alone, ESG fund assets under management approached nearly $360 billion.
Boards and C-suites that set lofty targets for ending poverty, tackling social inequities and protecting the planet without proper governance carry significant regulatory, financial and reputational and legal risks. Responsibility for implementing the ESG strategy set forth by leadership may fall on compliance teams to lead the development, implementation, tracking, reporting and disclosure of sustainable ESG strategies.
But where do compliance teams start? What questions should they be asking?
