Corporate social responsibility and sustainability have become two paramount elements of any operational business today. Without addressing these, companies are likely to miss out on aligning their sustainability goals and compliance requirements.
This is the purpose of the Sustainability and Enterprise Risk Management: The First Step Towards Integration report. Taking a closer look at enterprise risk management practices of the world’s largest companies, the WBCSD
has put together a report to provide greater insights into the sustainability and risk management for enterprises; highlighting the fact that 35% of 170 companies studied showed no alignment between sustainability reports and legal filings, compared to 8% who demonstrated full alignment.
The Sustainability and Enterprise Risk Management report marks the first step of closing the gap between how companies consider sustainability issues in their risk management processes and the way they are disclosed to investors.
The report shares survey statistics of 170 companies view sustainability and risk management, including the following:
- The majority, 89%, indicate that sustainability issues could have a financial impact on their business
- However, 70% believe their risk management practices are adequately addressing those risks
- Only 29% which outline material sustainability risks in reporting reflect the same details in their legal disclosures
With insights like these indicating a clear necessity for more work to be done in translating risks into the language of corporate reporting. It’s critical for companies to use mainstream risk disclosure models to bridge this gap.
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