ESG and ERM - Two Terms That Mitigate Risk, Enable Opportunities

摘要

It has become critically important for companies to integrate environmental, social, and governance risks into a company's enterprise risk management process - joining ESG and ERM together. We'll take up the former first, as it is the most familiar, then we'll discuss the two combined.ESG risks are often boundary-less, usually impact a firm's full supply chain, and can be difficult to predict and quantify. These may come from sources as varied as modern slavery to the coronavirus pandemic to the ongoing events from climate change. They generally require investment in business continuity plans and robust supply chains, and in care for workers, customers, and the communities in which they operate. ESG issues demand that companies act with integrity during a crisis or lose key stakeholders.