Sustainability Finance 101: A Lack of Diligent Sustainability-related Financial Risk Management leads to a credible Greenwashing Risk
In the last Sustainability & Sustainable Financial Success 101 post we discussed your organization’s financial resilience to the uncertainties arising from sustainability-related risks. In this post we’ll pose the questions necessary to determine whether your business is doing the necessary due diligence to identify and manage your business’ sustainability-related risks.
· What are the processes your business is using to identify, assess, prioritize and monitor sustainability-related risks?
· What are the associated strategies and policies that your business has adopted to ensure diligent risk management?
· What inputs does your business use to determine sustainability-related risks?
· Do you use scenario analysis, and if so, how do you analyze and prioritize the scenarios?
· Do you monitor and reassess sustainability scenarios as they evolve?
· What are the processes your business is using to identify, assess, prioritize and monitor sustainability-related opportunities?
· Does your business have an overall risk management process?
· How do you integrate sustainability-related risks into your overall risk management process?
Inadequate or undisciplined risk management practices that lack financial due diligence and rigor are giving rise to a credible greenwashing risk as acknowledged by those responsible for the financial reporting and health of organizations.
For instance, in this recent EY study, nearly all the CFOs and institutional investors surveyed are concerned about the integrity of their business’ non-financial data, including data related to sustainability-related risks.
SELE Solutions can help your business answer the above questions and make meaningful progress in implementing credible, diligent risk management to address sustainability-risks and avail of corresponding opportunities. Additionally, SELE can help identify and implement innovative technology solutions customized to meet your business’ specific sustainable development goals. Time is running out. Reach out to SELE Solutions to get kick-started on your journey to sustainable development.
info@selesolutions.com; +1(248)975.7353; www.selesolutions.com
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