Glossary ESG Risk Management
ESG risk management is the process of identifying, assessing, and mitigating environmental, social, and governance (ESG) risks that could have a material impact on a company’s financial performance or reputation. ESG risk management is becoming increasingly important to companies as investors, customers, and other stakeholders demand greater accountability for sustainability and ethical practices.
ESG risk management typically involves several steps, including:
Effective ESG risk management can help companies to avoid financial losses, reputational damage, and regulatory action. It can also help to enhance a company’s reputation and increase stakeholder trust.
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