Why ESG Is Gaining Importance
Environmental, social, and governance (ESG) programs are a hot topic in boardrooms as companies respond to growing pressure from investors, customers, staff, and regulators.
Today’s shareholders want more than just returns — they want to know how those returns are earned. Customers and staff care about values, not just profits.
The Challenge with ESG Programs
Many ESG frameworks outline what to consider but not how to operationalize ESG. Organizations often struggle to move beyond initial goal-setting to consistent execution.
Without integration, ESG efforts risk becoming marketing or compliance exercises, rather than embedded practices that influence real decisions.
ERM Provides Structure and Tools for ESG
Unlike ESG, ERM is built on mature standards like COSO and ISO 31000. It has strong industry adoption, proven processes, and experienced professionals.
ERM practices — like identifying key objectives, assessing materiality, tracking metrics, and managing strategic initiatives — align closely with ESG needs.
Boardroom Support & Organizational Buy-In
ERM already has a seat at the executive table, with regular board reporting and cross-departmental buy-in.
By leveraging ERM’s existing structure, ESG can gain visibility, credibility, and practical integration into decision-making and strategy execution.
Keywords: ESG, ERM, integration, boardroom, strategy, risk frameworks, maturity