Do potential ESG claims keep you awake at night? Rest assured, you are not the only one. We see newspapers and our inboxes full of valid ESG concerns, which is why environmental, social, and governance criteria are moving to the forefront of business strategies.
Research by Bank of America in 2019 revealed that S&P 500 companies that had suffered ESG-related controversies since 2014 have seen their stock market values drop by approximately USD 534bn in total. Add that number to the reputational damage and loss of talent, and your worst nightmare is complete.
According to the official data, the Corporate Sustainability Reporting Directive will directly affect about 50.000 companies across the EU. Those firms must report much information about their entire supply chain, including all the smaller companies they work with. So this new directive will affect not just the big companies.
ESG expertise within a company is no longer a 'nice to have'. This is why our next online session of the Risk Leadership Society, Friday, November 3, 1-3 PM CET, will be about how ESG claims can impact your business.