ESG Risks


ESG Risks

ESG risks are different to traditional risk types. For instance, environmental risks tend to be non-linear in their propagation and occur over a longer time horizon. ESG risks can affect multiple risk categories simultaneously, hence it is crucial to pay attention to the assessment of those risks. We also provide “Sustainability as a Service” -concept, which provides holistic on-demand support for our clients.

Physical and transition risk drivers impact economic activities, which in turn impact the financial system. This impact can occur directly through, for example, lower corporate profitability or the devaluation of assets. Or it can impact indirectly, through macro-financial changes.

There are multiple risks to assess in your ESG work:

  • Transition risks resulting from mitigation challenges as societies decarbonise
  • Physical risks of acute and/or chronic weather events which impact operations
  • Reputational risks that an ESG issue causes a detrimental impact to brand and reputation
  • Regulatory and reporting risks of non-compliance to sustainability disclosure regulation and/or marketing sustainable when not sustainable
  • Conduct risk that leads to customer detriment or negatively impacts market stability

We can support your ESG risk management and processes in multiple ways:

  • Governance  – update risk frameworks and policies for relevant risk types and integration of climate risk within Risk Appetite and management reporting metrics.

  • ESG Risk management  – establish a uniform risk taxonomy and risk categories and support in creating tools to identify and assess physical and transition risks.

  • Climate risk and opportunity assessment – data driven approach to identify and assess the actual and potential risks and opportunities for your organization.

  • Data and tools – scenario analysis, ESG scoring, risk and control assessments.

  • ESG in internal audit and in internal controls – help to highlight policies, controls, and responsibilities with respect to ESG strategies and tactics as of a particular point in time in specific areas of ESG.

  • Human rights risk and impact assessments – to evaluate your organization’s impact on human rights and understanding the risks involved and how they can be managed and mitigated.

ESG risk assessment provides data and insight to explore multiple opportunities, such as:

  • Product and service innovation providing a competitive advantage
  • Resource and energy efficiency to ensure effective operations
  • Enhancing the market brand resulting more loyal client base
  • Demonstrating resilience and transparency to the market
  • Leveraging data for more accurate and transparent external communication
  • Embedding ESG risks into the internal risk management culture and responsible business principles

We also provide “Sustainability as a Service” -concept, which provides holistic on-demand support for our clients. The service is tailored based on our individual clients’ needs and covers all sustainability-related services, and a range of sustainability professionals at your service.


Anne-Maria Flanagan

Anne-Maria Flanagan

Partner, Climate & Sustainability

Anne-Maria vastaa Deloitte Suomen vastuullisuusliiketoiminnasta. Hänellä on yli kahdenkymmenen vuoden kokemus vastuullisuuskysymyksistä. Hän on toiminut vastuullisuuden ja HSEQ:n asiantuntija- ja joht... Lisää

Iida Pulliainen

Iida Pulliainen

Business Development Manager, Climate & Sustainability

Iida Pulliainen työskentelee Deloitte Suomen vastuullisuusliiketoiminnan parissa. Hänellä on kokemusta vastuullisesta rahoituksesta ja taloudellisesta inklusiivisuudesta. Hän on toiminut asiantuntijat... Lisää

Teemu Jaatinen

Teemu Jaatinen

Senior Manager, Climate & Sustainability

Teemu toimii asiantuntijana Deloitten Finlandin vastuullisuuspalveluissa. Hänellä on yli 18 vuoden kokemus vastuullisuusraportoinnin, taloudellisen raportoinnin, varmennuksen, riskienhallinnan ja sisä... Lisää