ESG
Archer ESG Management
Archer ESG Management provides enterprise-wide assessment, mapping, monitoring, reporting, and qualification of the organization's environmental, social, and governance programs.
ESG, which stands for Environmental, Social, and Corporate Governance, refers to a company’s efforts to do business in an environmentally and socially aware manner. Increasingly, large investors are using some form of an ESG score when determining which companies are worthy of significant investments. There is also a public relations component to ESG, as the general public continues to demand more and more that businesses, especially large ones, conduct themselves in a way that is generally regarded as helpful to their employees and society at large, rather than just helpful to shareholders.
What is perhaps less obvious is that ESG now needs to be a major component of any good corporate integrated risk management strategy. There can be real consequences to a business if they are seen as running afoul of accepted environmental, social, and governance best practices. Any business trying to achieve true operational resilience will want to add ESG into programs currently dealing with IT Risk management, vendor risk management, and all other risk-related efforts.
Integrating ESG into a Corporate Risk Management Strategy
Internally, previous requirements to report on the progress of ESG related programs are transitioning from an annual exercise towards one requiring near-real time visibility into risks and impacts. Externally, investors and other stakeholders want to know the organizations they invest in are going to survive and thrive into the future, and their ESG programs represent a critical element of overall sustainability.
In September of 2021 Archer announced the launch of the Archer ESG solution to help organizations prepare for increased pressure to track and report on the progress of their Environmental, Social and Governance programs. This new solution leverages Archer’s consistent leadership in integrating risk from across an organization. The Archer ESG solution allows data to be gathered in a centralized integrated risk management (IRM) platform in order to be managed as part of a larger strategy. This also allows C-Suite leaders to access quantifiable risk data and take action to protect the business from risk.
ESG and the Future:
It is fairly safe to assume that environmental, social, and corporate governance is only going to grow in importance over the next 10 years. It is currently a focus for investors and consumers, but is rapidly growing in importance for regulatory bodies including the United States Government. The SEC has indicated an upcoming regulation to impose mandatory climate risk disclosure, and the European Union will likely impose even stricter reporting standards on top of the current Corporate Sustainability Reporting Directive.
This means that the time is now for large organizations to move to an integrated risk management strategy that includes ESG as a key component. Streamlined reporting and analysis alone will surely drive significant ROI over the coming years. The Archer ESG solution combined with the award-winning Archer IRM platform is a top choice for enterprise and corporate risk leaders around the world.
Learn more about Archer Environmental, Social, and Governance solutions here.
Frequently Asked Questions:
Why is ESG Important?
EGS is important from 3 perspectives, investor relations, public relations, and compliance. Investors increasingly want to see a good ESG score prior to committing capital. The general public increasingly wants to patronize businesses that treat employees and the community with decency and respect. From a compliance perspective, regulatory bodies will soon require thorough ESG reporting.
How does ESG relate to risk management?
ESG manifests as risk from an investor and public relations perspective, as well as from a regulatory standpoint. Consumers, Investors, and Regulators increasingly demand that businesses report on ESG operations and successes. Failure to do so could put the organization at risk for not just bad publicity, but failure to acquire capital or failure to comply with government regulations. ESG must be included in any good integrated risk management program.
Are ESG and CSR the same?
ESG stands for Environmental, Social, and Corporate Governance while CSR stands for Corporate Social Responsibility. CSR is more typically thought of as a marketing term, while ESG is increasingly important factor for not just PR, but also investor relations, regulatory compliance, and risk management.