ESG Risks
ESG risks are different to traditional risk types. For instance, environmental risks tend to be non-linear in their propagation and occur over a longer time horizon. ESG risks can affect multiple risk categories simultaneously, hence it is crucial to pay attention to the assessment of those risks. We also provide “Sustainability as a Service” -concept, which provides holistic on-demand support for our clients.
Physical and transition risk drivers impact economic activities, which in turn impact the financial system. This impact can occur directly through, for example, lower corporate profitability or the devaluation of assets. Or it can impact indirectly, through macro-financial changes.
There are multiple risks to assess in your ESG work:
- Transition risks resulting from mitigation challenges as societies decarbonise
- Physical risks of acute and/or chronic weather events which impact operations
- Reputational risks that an ESG issue causes a detrimental impact to brand and reputation
- Regulatory and reporting risks of non-compliance to sustainability disclosure regulation and/or marketing sustainable when not sustainable
- Conduct risk that leads to customer detriment or negatively impacts market stability
We can support your ESG risk management and processes in multiple ways:
ESG risk assessment provides data and insight to explore multiple opportunities, such as:
- Product and service innovation providing a competitive advantage
- Resource and energy efficiency to ensure effective operations
- Enhancing the market brand resulting more loyal client base
- Demonstrating resilience and transparency to the market
- Leveraging data for more accurate and transparent external communication
- Embedding ESG risks into the internal risk management culture and responsible business principles
We also provide “Sustainability as a Service” -concept, which provides holistic on-demand support for our clients. The service is tailored based on our individual clients’ needs and covers all sustainability-related services, and a range of sustainability professionals at your service.
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