It’s been a noisy year so far on the ESG front.
A broad bundle of factors identified by and intended for the financial investment industry nearly 20 years ago, environmental, social and governance (ESG) has grown into a highly politicized acronym. This has heightened risk for companies in nearly every sector.
The cacophony of several raucous U.S. congressional hearings over the summer combined with a slew of state-by-state legislative activity tied to ESG matters have made it increasingly difficult for the business community to determine how to respond to public outcries over the alarming climate and social conditions on our planet.
But risk experts urge senior leadership to prioritize governance and comprehensive enterprise risk management above all else when looking at implementing new initiatives or disclosing any positions tied to ESG.
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Cyber policies are also called upon to address “governance” claims involving data breaches and other cyber events, said Dennis J. Artese, equity shareholder, Anderson Kill.
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