Recently, there has been a fair amount of articles examining the role that ESG plays in business. Undoubtedly, ESG is only rising in importance across all departments, becoming almost impossible to ignore. Corporate Social Responsibility stopped being a catchy buzzword and began to carry much more weight. We’ve also talked about ESG being incorporated into security risk management and how those two can have a mutual influence.
Whenever environmental, social or governance crumbles, it creates a ripple effect that springs into many new risks. Knowing this, careful monitoring of those three pillars can allow for early detection of rising risks and more precise risk assessments.
As such, the environment can play an equally substantial role in the early warning system of ESG. Not only ecological or natural disasters can directly influence your safety levels and business operations, such as access to uncontaminated water or waste disposal, but they also impact the socioeconomic structures of the region. And social concerns can be some of the most jarring – whenever there are poor living conditions, poverty and discrimination, whenever there is high unemployment or rising tensions between certain social groups, the risk levels spike.
Are you paying close attention to ESG?
If you’d like to see how well is ESG integrated into your organization, check out our free ESG Due Dilligence Checklist!
