Mitigating reputational risk of “greenwashing”

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ESG: Mitigating reputational risk of “greenwashing”

Environmental, social, and governance (ESG) factors are becoming an essential element of business sustainability strategies - but face challenges in designing strategic approaches that align with corporate values and accountability needs.

Sep 04, 2023

Keith Davies, Group Chief Risk & Compliance Officer, Admiral PLC

ESG: Mitigating reputational risk of “greenwashing”

The views and opinions expressed in this content are those of the thought leader as an individual and are not attributed to CeFPro or any other organization

Firms are shifting focus from managing external risks to addressing their own sustainability impact.
Positive sustainability practices can boost demand, cut costs, enhance employee satisfaction, and improve brand reputation.
Sustainability strategies must be strategic, holistic, and aligned with company values to prevent greenwashing.
Companies need to assess the sustainability credentials of their value chain partners.
ESG ratings provide a standardized but imperfect tool for evaluating third-party sustainability.
Greenwashing poses significant reputational risks; authentic sustainability integration is crucial.
Governance measures and cultural shifts are necessary for successful sustainability implementation.
Sustainability strategies should evolve to reflect changing stakeholder expectations and societal trends.