ESG Riks responses

Risk management procedures are to protect the companies value and long term viability. Most of the ESG factors can be factored into the regular companies Risk management framework.ESG issues are one of the points of focus for stakeholders, government to address as a risk management concern (Galbreath, 2013). Most investors, according to the 215 global Ernst & young report factoring ESG, reports into their decision making the process. According to the authors, LeBlanc and Kislevitz (2016), about 71% of investors participating in a survey considered the ESG data is needed when making an investment decision. The investors systematically assess the ESG data to simultaneously assess the risk profile of the firm. The major problem for the companies is that ESG risks are poorly understood and many functions can help to monitor the ESG risks (Galbreath, 2013). There are few companies ISS, Bloomberg, and MSCI that evaluate ESG ratings of the company. ESG risks will affect the company both physical and financial assets, the corporate value of the company is mostly intellectually assets, human capital, brand and reputation, and Physical assets. For an ESG risk, there would be a chance that the company can be affected by financial losses with the loss of the work (LeBlanc & Kislevitz, 2016).