Why is a Risk Assessment conducted in an ESG report?

ESG Risk Assessment is the process of identifying and analyzing risks related to environmental, social and corporate governance aspects. The purpose of this analysis is to understand what risks may arise from a company’s operations and how these factors may affect financial performance, reputation and stakeholder relations.

Conducting an ESG Risk Assessment helps companies prepare for the challenges posed by dynamic market, regulatory and climate changes. Through such analysis, companies can better manage risks, minimize potential losses and build long-term, stable relationships with business partners. ESG risk assessment includes not only internal analysis, but also monitoring of the entire supply chain and the activities of business partners, allowing companies to comprehensively manage potential risks.