Keep an Eye Out for ESG – Security Professional’s Guide to Predicting the Future

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.

Environmental, social and governance concerns became not only more prominent in the public discussion but also warrant more attention from the security standpoint even outside of the internal company policies.
By paying careful attention to ESG factors present in a certain geographical region, one can gain significant insights into the local risk landscape, and utilize this information to make accurate predictions.

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.

For example, if the governance of a country begins to falter it can become a security problem very quickly – and not just in the most extreme cases. Corruption and ineffective law enforcement can translate into much higher likelihood and more severe consequences of, for example, civil unrest. Any rapid changes in the governance landscape could also indicate upcoming trouble – the less stable the country, the greater the risks.

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.

The 2022 situation in Sri Lanka or the predicament in Peru could serve as a prime example. It is possible to trace those early warning signs of ESG way back and especially notice faltering governance and failing social elements, which evolved into raging crises directly affecting all businesses operating in those regions.
It is impossible to foresee the future, but by paying close attention to the changing circumstances, it is easier to make accurate predictions and prepare for what’s to come. ESG is certainly only one of the many possible lenses through which one can take a look at the risk landscape – but it can also be a very effective one.
Moreover, it can encourage inter-departmental cooperation and help security risk management as well as various CSR initiatives within the organization.

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! 


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