Environmental, social and governance (ESG) efforts are often led by sustainability, investor relations or people functions.
At the same time, risk managers are leaders and partners in helping organisations define and manage risks and opportunities relating to ESG, which is essentially a series of risks.
By measuring and managing ESG risks, risk managers can have a significant impact on factors influencing their organisations’ long-term success.
Some businesses are already embracing the role of the risk manager in progressing ESG. Half of the respondents to WTW’s latest ESG Global Risk Managers Survey said the risk management function was involved in their organisations’ ESG efforts.
What makes an ESG risk management expert?
Firstly, ESG is not one risk. It’s potentially more than 30 individual risks.
Managing them all effectively is not about being an expert in everything from decarbonisation, human rights and board diversity, to name just three ‘e,’ ‘s’ and ‘g’ risk drivers.
It’s about applying robust risk management frameworks, governance structures and deploying risk analytics, modelling and forecasting to systematically identify and manage these…
