Security News > 2023 > September > Unimplemented controls could derail your ESG compliance efforts

This lack of ESG program readiness raises the risk of reporting incomplete or incorrect data and leaves organizations unprepared to maintain compliance with future regulations, including the forthcoming ESG rules from the Securities and Exchange Commission.

Over 75% of respondents said they currently collect evidence for ESG metrics, and 26% reported that they plan to begin performing internal ESG audits in the next year.

Only one-third of respondents report being in compliance or planning to comply with the proposed SEC ESG rules.

Even among those with an ESG budget, only 9% have a budget allocated for ESG program management technology.

"The AuditBoard survey on ESG maturity reveals an urgent need to align investment with controls and transparent disclosure. As companies face looming ESG regulations across the globe, the integration of ESG principles cannot remain segmented," said John A. Wheeler, former Gartner IRM Analyst and Senior Advisor, Risk and Technology at AuditBoard.

ESG is not included as a strategic part of enterprise risk management at many organizations: 40% of organizations don't include ESG risks in ERM strategy, and 35% of organizations have not performed a materiality assessment.

News URL

https://www.helpnetsecurity.com/2023/09/08/esg-program-readiness/