ESGDS Forum
What Is The Role Of Audits And Certification In ESG Risk Management
With the rise of environmental, social and governance (ESG) regulations and policies, investors and consumers are demanding more information on company ESG initiatives. ESG risk factors that undergo independent audits are scored favorably by ESG data providers, and areas of risk audits are always included in ESG datasets. Organizations face mounting pressure to improve environmental, social and governance (ESG) practices from many stakeholders, including regulators, customers, investors and even employees. A company's entire supply chain can make a significant impact on human rights and safety. It is not reassuring to see that only 3% of companies perform an audit on supply chain safety and 1% on human rights practices of their suppliers.