Dr Allinnettes Adigue, Global Reporting Initiative; Constant Van Aerschot, WBCSD
ESG is intricately bound up with risk and represents an opportunity for organisations.
The COVID-19 pandemic has highlighted the diverse web of interconnected factors that can impact a business, demonstrating more clearly than ever that siloed thinking is not the way forward – especially when it comes to addressing risk.
“Traditional risk management looks at financial risks, and companies used to look at risks in silos like financial risks, health and safety risks and so on, but now we have seen that one crisis or one risk can create a domino effect; so we've seen that the pandemic is a health crisis that created a humanitarian crisis, a monetary crisis, and an economic crisis. It has shown businesses that the time of siloed thinking is long over,” says Dr Allinnettes Adigue, head the ASEAN Regional Hub for GRI (Global Reporting Initiative), the independent, international organisation that provides the world’s most widely used standards for sustainability reporting – the GRI Standards.
“The pandemic has shown the vulnerability of supply chains, the lack of resilience also the interdependencies and interconnections of our world,” agrees Constant Van Aerschot, director of the WBCSD (World Business Council for Sustainable Development) Asia Pacific. “If somewhere a link in the chain is broken, that means the whole chain is broken. What we have seen is that those companies with intact value chains have in fact benefitted from the pandemic. Some have made record profits, because they were able to deliver where their competitors could not. Those with intact value chains are typically more advanced in ESG because they will engage more with stakeholders.”
Global Reporting Initiative, COVID-19, Risk Management, ESG, Insurance, Reinsurance, Allinnettes Adigue, Constant Van Aerschot, Global