There is not one rulebook to follow when it comes to ESG.
Different institutes, different rating agencies, different industry bodies, etc. adopt diverse – sometimes even divergent – methodologies to measure ESG performance. However, there is one aspect all frameworks, guidelines and standards agree on: ESG risks are, in fact, risks. An ERM process, because operating by nature across an organisation, can be a formidable tool to ensure ESG material aspects are not only identified and measured, but also addressed and embedded within one company’s corporate strategy.
To this end, the ERM framework must prove to be organisationally sound and consistent, capable of identifying risk upsides and correlations, and capturing valuable, usable information from existing processes. As ESG has significantly evolved from being mere philanthropy, so ERM must evolve too.
Federico Vagnoni leads in Europe the Specialty Advisory practice for Marsh, global leader in insurance brokerage and risk management consulting solutions. Focusing on advisory services, Federico’s team is specifically dedicated to companies operating in complex, technical and capital intensive industries. With an extensive international experience, Federico specialises in delivering advisory work in the areas of strategy, corporate governance, sustainability and enterprise risk management consulting fields. Prior to Marsh Advisory, Federico led the ERM team of a group of airlines based in London, and subsequently moved in the corporate strategy team based in Frankfurt.