Transitioning from ESG theory to practice from a risk governance perspective is not an easy task. The Risk Coalition’s Risk Officers Sustainability Forum discussed the challenges at its most recent forum. Summarising the discussion, Alex Duncan highlights that the alignment with business strategy is the key building block for establishing fit-for-purpose ESG governance. Risks need to be considered from both an ‘inside-out and outside-in’ perspective and the CRO needs to be aware of the risks in producing and challenging transition plans to achieve net-zero targets. In the final analysis, a ‘do nothing’ approach or strategy is not viable.
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Sustainability: risk management and the balance of trade-offs
In fulfilling their responsibilities, chief risk officers need to balance the seemingly conflicting priorities of fiduciary duty to investors, conduct towards our customers and expectations of other stakeholders in a way that both moves the sustainability agenda forward and protects their companies from other risks over the short and longer term. Alex Duncan summarises the key discussion points from the Risk Officers Sustainability Forum recent discussion on 20 January which was held under the Chatham House Rule. He highlights that chief risk officers need to establish strong leadership positions within their firms to help their colleagues and their Boards navigate the dilemmas and moral challenges of sustainability agenda.
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Emerging sustainability regulation, the neglected risk?
The Risk Officer Sustainability Forum (ROSF) roundtable recently debated the risks and challenges posed by emerging sustainability regulation and how to manage these. These challenges emerge from the increasing complexity of complying with the volume of regulation which comes from both international and domestic sources, not all of which is currently aligned. Alex Duncan sets out the key themes and messages arising from the discussion.
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