There is a steady increase in mandatory sustainability reporting globally, and a greater understanding that sustainability does have an integral part in the strategy of a business. Having influence on the financial returns, opportunities and wellbeing of a company in the long-term.

The question being asked by those new to sustainability reporting, is where do we start? One good place to start is to look at the existing tools and systems in hand, such as your company risk management system.

Traditional risk management actually plays a vital role in sustainability reporting, by integrating ESG risks into your conventional risk management framework comes a richer analysis around the companies risks and a more meaningful cohesive narrative through your corporate reports.

The following are some key areas that traditional risk management looks into, which would contribute to providing a structured and systematic approach in identifying, assessing and monitoring sustainability risks. Subsequently creating a well-rounded company risk management system.

1. Identification of Risks
2. Materiality Assessment
3. Integration of Sustainability into Overall Risk Framework
4. Scenario Planning:
5. Quantification and Measurement
6. Mitigation and Controls
7. Reporting Transparency
8. Regulatory Compliance

Would love to hear your thoughts on how sustainability and risk management can align.