Video: ESG – Assessing Material Risks
Navigating ESG Risk Management and Reporting: Our ESG Video Series
July 20, 2022
ESG is a broad term that is easily said but difficult to pin down.
ESG incorporates a range of factors to help a company evaluate its performance on the environmental, social and governance aspects of its operations. It encompasses hundreds of disparate material topics, from climate change to health and safety, to board of directors' composition.
Companies are committed to ESG but feel underprepared
FTI Consulting’s Resilience Barometer shows that 85% of G20 companies and 88% of Australian companies have committed more resources to ESG and sustainability.
But more than two-thirds of business leaders agree they currently have insufficient ESG expertise to cope with increasing scrutiny and to navigate the current landscape.
How do I know what issues to focus on in my ESG strategy?
The first step is to conduct a materiality assessment.
This formal process involves research and stakeholder engagement to assess and define which material risks they should be focusing on.
Starting with a materiality assessment gives clarity and assurance that your company is acting on matters significant to the business.
The views expressed herein are those of the author(s) and not necessarily the views of FTI Consulting, Inc., its management, its subsidiaries, its affiliates, or its other professionals. FTI Consulting, Inc., including its subsidiaries and affiliates, is a consulting firm and is not a certified public accounting firm or a law firm.