Understanding ESG Risk

Environmental Risks

• Climate change and extreme weather events

• Resource scarcity and water stress

• Biodiversity loss and ecosystem degradation

• Pollution and environmental compliance failures

Social Risks

• Labour standards and workplace safety

• Human rights violations and community impact

• Social inequality and reputational issues

• Supply chain transparency and ethical sourcing

Governance Risks

• Corruption, fraud, and bribery

• Poor corporate governance and accountability

• Regulatory non-compliance

• Executive misconduct or board-level failures

ESG risks are interconnected and can have cascading effects on financial performance, operational stability, and stakeholder trust.

Why ESG Risk Matters

For organisations, ESG risks can result in:

• Regulatory penalties and litigation

• Loss of investor confidence and market value

• Operational disruption or supply chain failure

• Damage to brand and stakeholder relationships

For investors, ESG risks affect:

• Portfolio performance and long-term returns

• Exposure to controversial or high-risk assets

• Alignment with sustainable investment strategies and mandates

For governments, ESG risks influence:

• Policy and regulatory effectiveness

• National resilience and economic stability

• Compliance with international agreements and sustainability goals

Our ESG Risk Services

We provide comprehensive ESG risk solutions tailored to organisational and governmental needs:

ESG Risk Assessment

Identify and evaluate ESG risks across operations, investments, sectors, and supply chains.

Due Diligence & Screening

Conduct enhanced due diligence on partners, suppliers, and investment targets to assess ESG exposure.

Monitoring & Early-Warning

Track emerging ESG risks, regulatory changes, and reputational threats to enable proactive response.

Scenario Analysis & Stress Testing

Model ESG-related scenarios, including climate impacts, regulatory shifts, and social unrest, to assess resilience and strategic exposure.

Advisory & Strategic Support

Integrate ESG risk into governance frameworks, reporting, and investment or operational strategy.

Who We Support

• Corporations and multinational enterprises

• Asset managers and institutional investors

• Financial institutions and banks

• Governments and public agencies

• Development organisations and multilateral institutions

Why Our Approach Works

We combine:

• Data-driven analysis of ESG risk factors

• Expert insight across sectors and geographies

• Actionable recommendations for decision-making

• Forward-looking, risk-based methodologies for sustainable outcomes

This approach helps clients manage ESG risk proactively, strengthen resilience, and deliver long-term value for stakeholders.

Build Resilience Through ESG Risk Management

Understanding and mitigating ESG risks is critical to protecting reputation, ensuring compliance, and achieving sustainable success.