ESG and a rapidly evolving risk climate

ESG practices are emerging as critical factors for organizations to consider when monitoring cybersecurity risks

This is even more critical than before, as the frequency and extremity of large-scale disruptions have increased over the last two years. Failing to implement ESG practices can create cyber, financial, and operational risks for businesses.

Interos recently looked at ESG scores from 1,533 North American and 556 European financial institutions (FIs) to glean insights into what these scores indicate for the market.

Key findings included:

• EU FIs score about 15% better than their North American counterparts in environmental and social risk (and about equally in governance).
• Although credit rating agencies are watching ESG factors closely, credit risk scores currently do not take ESG risks into account.
• Larger FIs are better than smaller institutions at managing ESG risk.

Download the paper to learn how addressing ESG can give FIs a competitive edge.