Sustainability governance, risk and compliance solution
Unlock value by integrating sustainability into your core business strategy and operating model. With a market-leading approach to transformation, our Sustainability GRC solution helps you create long-term impact and financial value for all stakeholders.
Your business challenge
Every organization must respond to environmental, market and societal challenges, as well as their impacts on our planet and society.
Stakeholders are demanding more action and disclosure from companies: not just activist investors but also mainstream investors, lenders, and creditors; governments; consumers; business partners; and employees seeking to understand how companies are identifying and responding to environmental, social and governance (ESG) risks.
- Capital markets are driving sustainability to lower the cost of capital: 91% of investors say ESG performance played a pivotal role in investor decision-making over the last year (How will ESG performance shape your future? (2020)).
- Regulators’ challenging inadequate risk-based ESG management and disclosures can lead to lower investor attractiveness and potential divestment: 74% of institutional investors are more likely to “divest” based on poor ESG performance than before the COVID-19 pandemic. (Is your ESG data unlocking long-term value? (2021) (pdf)).
- Business partners and suppliers are examining the sustainability credentials of their supply chains.
- Employees and future talent are increasingly selective in assessing their future employer’s sustainability credentials.
ESG strategies need to address the wide-ranging business model issues that shape an organization’s ability to create value over the long term. Our ESG GRC solution enables your organization to:
- Use ESG as a catalyst for rethinking strategic priorities, business processes, and managing risks and opportunities to benefit the business, customers, employees and society (Strategic risks).
- Help set transformation priorities and chart the next steps in the journey (ESG program risk management).
- Increase your ability to navigate complex regulations and react strategically through your key initiatives (ESG regulatory risk).
- Provide a people, process, technology and data-driven approach that is at the heart of all sustainability initiatives to help enable business value delivery and reliable ESG performance and risk disclosures (ESG GRC).
Solution features and functionality
EY teams focus on your specific ESG challenges, suggesting practical solutions to help you meet your sustainability goals. We do this by first conducting a sustainability materiality and capability maturity assessment to recommend a tailored but comprehensive approach:
ESG Risk Identification and Assessment
EY teams assist clients with the identification, assessment and reporting of risks related to sustainability matters, including governance, environmental, social and employee matters; respect for human rights; anticorruption and anti-bribery matters as well as climate change risk modeling and stress testing.
ESG Integration in ERM Program
EY teams assist clients with evaluating their enterprise risk management (ERM) strategy and program to effectively identify, assess, mitigate and report ESG risks.
Internal Controls over Sustainability Reporting
EY teams support clients to design, implement, monitor and improve the right integrated risk and control model, and processes to address ESG reporting requirements. In doing so, we enable clients and their stakeholders to build trust in the integrity of reported information.
ESG Regulatory Compliance
EY teams help clients improve their understanding of all applicable ESG regulations and build capability to evidence those regulatory obligations are being adhered to or controlled.
ESG Program Risk Management
EY teams help clients analyze ESG program goals, risks, and controls in place to meet the requirements. We help EY clients with ESG programs that deliver on their planned outcomes by bringing together program risk, quality, benefit and performance management as the foundational focus areas to help management make well-informed decisions.
Third-Party Risk Management (TPRM):
The TPRM ESG solution helps organizations increase transparency and awareness of ESG-related third-party risks to improve end-to-end visibility and resilience of the third-party supply chain and their ecosystems.
ESG Internal Audit Support
EY teams support internal audit functions by providing insights and assurance to increase the level of confidence in managing ESG risks, reporting and operational performance.
The EY organization has been recognized as No. 1 for ESG consulting services by Verdantix. We bring together experience coupled with a deep understanding of regulatory requirements to guide you through your transformation in a way few organizations can match.
EY Alliance and Ecosystem Relationships
At the EY organization, we collaborate, cocreate and innovate with leading organizations such as Microsoft, ServiceNow, and Enablon to drive transformation, performance and growth.
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