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Originally published by Risk & Insurance
By: Raquel Moreno
As someone who works with mid-market teams to launch IPOs, Thomas said she urges companies to take on ESG in moderation. The Conference Board’s recently published guide to building a sustainability culture with the support of Baker Tilly also encourages leadership teams to consider taking a measured approach and only pursue one to two meaningful sustainability goals at a time.
While every company with ESG missteps may not face litigation, not meeting publicly-disclosed targets and goals presents major reputational risk, she added.
Before issuing external statements, Thomas advised executive teams to focus on clearly assessing their current position on all aspects related to sustainability and from there, articulate the organization’s journey in a way that resonates with core stakeholders.
“What’s going to be really important to stakeholders,” including shareholders, Thomas noted, “is that you’re enhancing the value; it’s value creation at the end of the day.”
As long as companies comply with minimal existing disclosure regulations in the U.S., WTW’s Fine noted, “there are unlikely to be litigation or other financial exposures for companies from being less vocal about their ESG practices.”
“The main danger from ‘greenhushing,’ ” Fine said, “is forgoing positive credit that a company might deserve for their ESG efforts.”
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