PERCEPTIONS OF RISK RELEVANCE VARY GREATLY ACROSS ESG COMPONENTS OnRisk 2022 breaks out the three risk areas associated with ESG —onmenEvir talSustainabi,lity SocialSustainabi,lity andOrganizationalGovernance.Respondentratingsandespo r nsesclearlyindicateOrganizationalGovernancedominates overSocialSustainabilityandonmenEvir talSustainabilitynhemindsofsurveyparticipants(Figuer 4).Inalee lthr measues r —personalknowledge,gan or izationalcapabi,lity andriskelr evance—espo r ndentsrankOrganizationalGovernance amongthehighestofallrisksexaminedandwellaheadofSocialSustainabilityandonmenEvir talSustainabilityrsks.
OnRisk
Figure 4:
ESG MEASURES – COMPARING RELEVANCE, KNOWLEDGE, AND CAPABILITY TO ROLE Percentage who gave a rating of 6 or 7 on a scale of 1 to 7 ORGANIZATIONAL GOVERNANCE RISK RELEVANCE ORGANIZATIONAL CAPABILITY PERSONAL KNOWLEDGE
SOCIAL SUSTAINABILITY
ENVIRONMENTAL SUSTAINABILITY
Note: OnRisk 2022interviewquestions:Howknledgeable areyouabouteachofthefolowingrisks?elHowr evantare eachofthefolowingriskstoyurcuenr gan tor ization?Over all, how capable is your company when it comes to handling enterprisewiderisk?Respondentscouldchosearatingfrom ascaleof1to7,with1beingthelowest(“notatall”)and7 beingthehighest(“exemtr ely”). n=90.
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