Corporate governance and the management of ESG risks

At the very heart of a sustainable and resilient economy is a dynamic business sector that is willing and able to assume risk. To finance and manage risk taking is therefore as old as the corporate form itself. As new types of risks emerge or become more salient, the company, its shareholders and society at large all have an interest that these risks are properly managed and disclosed so that scarce resources can be allocated in the most efficient manner. In recent years, this has brought increased attention to environmental, social and governance risks that may influence corporate and economy wide resilience. This chapter address the outlook with respect to evolving tools and corporate practices for managing ESG risks and the challenges that remain with respect to establishing a commonly accepted high quality framework for disclosure of comparable, consistent and verifiable data.