Applying ERM to Environmental, Social and Governance-related Risks
19 February 2018
United States of America, North America
In a unique partnership, COSO and the World Business Council for Sustainable Development (WBCSD) have jointly developed draft guidance: Applying Enterprise Risk Management to Environmental, Social and Governance-related Risks to help organizations worldwide respond to the increasing prevalence and severity of ESG-related risks.
The preliminary draft of the guidance was released on February 7, 2018, at GreenBiz. It is available for viewing here (https://www.coso.org/Documents/COSO-WBCSD-Release-New-Draft-Guidance-Online-viewing.pdf). COSO and WBCSD are now seeking public comment on the preliminary draft.
The guidance is intended to support organizations in accelerating integration of ESG-related risks and opportunities and help them gain a better understanding of their full risk profiles. It also highlights methods to overcome ESG-related risk challenges, including identifying and assessing the severity of such risks with uncertain financial consequences, and developing innovative responses for ESG-related risks and opportunities.