By Richard Moss, Global Head of Risk Strategy
As the world transitions to increasingly green priorities, everyone acknowledges that no organisation will be insulated from having to confront Environmental, Social, Governance (ESG) issues that are shaping the present and whose consequences will affect future generations. Regulations including Sustainable Finance Disclosure Regulation (SFDR) and Non-Financial Reporting Directive (NFRD) and initiatives including the Taskforce on Climate Related Financial Disclosures (TCFD) framework and the European Union taxonomy promise to address climate change as a core priority are shaping the world of finance and investment. Furthermore, stakeholders from all sides – financial institutions, regulators, governments, the United Nations, non-governmental organisations, and investors – agree that actions that will yield a greener investment landscape are a win for everyone. Care must be taken to unify requirements and best practices for ESG risk assessment. There cannot be “gaps” across jurisdictions. But asking how to get there doesn’t seem to yield a simple answer.