Regulatory and societal expectations on Environmental, Social and Governance (ESG) factors are rising. We support financial institutions, corporates and the public sector in managing and mitigating ESG Integrity risks such as ESG-related misconduct, supply chain integrity, civil liability, and financial crime.
Businesses face increasing responsibilities with regard to the impact of their own operations and their supply chains on human rights and the environment. Increasing regulatory and societal expectations require businesses and the public sector to assess, manage and mitigate actions or practices which violate Environmental, Social and Governance (ESG) principles and standards.
While more and more attention is given to ESG factors and a growing volume of legislation focuses on reporting obligations, the nexus between ESG integrity misconduct, financial crime and risk of civil liability of companies and its directors remains an area that requires significant attention.
Fulfilling international obligations, such as the OECD Guidelines and upcoming EU directives linked to the European "Green Deal" like the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), extends the range of responsibilities related to ESG misconduct. Next to this expanding view on supply chain integrity, the United States Department of Justice's expectations of effective compliance frameworks impacts the landscape of corporate integrity. This requires attention for strategic integration of governance, compliance and sustainability. Especially as the criminalization of ESG misconduct is increasingly being incorporated into national and international frameworks, including the Environmental Crime Directive (ECD).
“Integrating Sustainability and Human Rights into your organization's strategy is not a choice; it’s the way forward for your institution to thrive in the future.” - Maarten Rijssenbeek, Partner
At Deloitte, we understand that businesses and the public sector need to balance internal and external stakeholders’ expectations to prevent and mitigate harmful activities, whilst recognizing the necessity to generate sustainable growth and efficiently manage internal operations, which are crucial for sustained business viability. To navigate this complex landscape effectively, companies and the public sector must embrace a comprehensive approach to managing and mitigating ESG Integrity risks.
Deloitte is strongly positioned to assist financial institutions, corporates and the public sector with the prevention, detection and neutralization of misconduct, including ESG-related crimes (e.g. environmental crimes like air, water and soil pollution), the laundering of the proceeds thereof, and fraud related to ESG (including Greenwashing). By scrutinizing environmental, social, and governance factors, we pinpoint potential risks and areas for enhancement. Utilising our extensive global network, we disseminate best practices and case studies that highlight effective transformation programs and risk management strategies.
“With our extensive expertise, worldwide network and positioning the market, Deloitte is your trusted partner to support you in achieving your ESG Integrity goals.“ - Laura Klapwijk, Partner
Our webcast ‘Integrity Insights: Spotlight on ESG’ highlights some of these best practices, as our hosts dive into the critical interplay between the United Nations’ Sustainable Development Goals and ESG Integrity. With professionals from the public and private sector, we explore lessons learned from misconduct and extensively discuss best practices from organizations in all industries to prevent misconduct and contribute to the Sustainable Development Goals by 2030. View all our episodes here.
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