ESG Integrity Risks

Solution

ESG Integrity Risks

Manage and Mitigate ESG Integrity Risks

Regulatory and societal expectations on Environmental, Social and Governance (ESG) factors are rising. We support financial institutions and corporates in managing and mitigating ESG integrity risks such as ESG-related misconduct, civil liability, and financial crime.

Businesses face increasing responsibilities with regard to the impact on humans and the environment of their own operations and their supply chains. Increasing regulatory and societal expectations require that businesses assess, manage and mitigate actions or practices which violate Environmental, Social and Governance (ESG) principles and standards. While more and more attention is given to ESG factors and a growing volume of legislation focuses on reporting obligations, the nexus between ESG integrity misconduct, financial crime and risk of civil liability of companies and its directors remains an area that requires significant attention.

 

Fulfilling international obligations, such as the OECD Guidelines and upcoming EU directives linked to the European "Green Deal" like the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), extends the range of responsibilities related to ESG misconduct. Furthermore, the criminalization of such misconduct is increasingly being incorporated into national and international frameworks, including the Environmental Crime Directive (ECD).

Your trusted advisor in ESG Integrity Risk Management

At Deloitte, we understand that businesses need to balance internal and external stakeholder’s expectations to prevent and mitigate harmful activities, whilst recognizing the necessity to generate sustainable growth and efficiently manage internal operations, which are crucial for sustained business viability. To navigate this complex landscape effectively, companies must embrace a comprehensive approach to managing and mitigating ESG integrity risks.

Deloitte is strongly positioned to assist financial institutions and corporates with the prevention, detection and neutralization of ESG-related crimes (e.g. environmental crimes like pollution of air, water and soil), the laundering of the proceeds thereof, and fraud related to ESG (including Greenwashing). By scrutinizing environmental, social, and governance factors, we pinpoint potential risks and areas for enhancement. Utilizing our extensive global network, we disseminate best practices and case studies that highlight effective transformation programs and risk management strategies.

ESG Integrity Risk & Compliance Framework

We can help you by designing a futureproof and risk-based ESG Integrity framework, including:

  • Advising on legal & regulatory requirements and expectations (civil, administrative and criminal law)
  • Designing ESG Integrity Risk strategy and Risk appetite
  • Performing ESG Risk Assessments by identifying integrity risks in value chain

ESG Integrity Risk Mitigation Solutions

We can help you by designing and implementing risk mitigation frameworks, including:

  • Designing and implementing transformation programs or tailor-made risk management solutions
  • Developing Standards, Policies and Work Instructions
  • Designing and implementing risk mitigation frameworks such as Target Operating Model (TOMs) or Third Party Risk Management (TPRM)
  • Risk control framework

ESG Integrity Forensic Investigations & Litigation support

We can help you by conducting ESG Integrity-related investigations and litigation support, including:

  • Conducting Third Party Due Diligence (TPDD)
  • Investigating (ESG)-fraud signals (greenwashing, misconduct)
  • Supporting with (ESG) Mass Claims

Contact

Maarten Rijssenbeek

Maarten Rijssenbeek

Partner

Maarten is a Financial Advisory partner at Deloitte the Netherlands. He is offering clients support related to financial crime, regulatory enforcement, investigations and litigation matters. Maarten h... More

Laura Klapwijk

Laura Klapwijk

Partner

Over the past 15 years I have supported many corporate clients by advising them on regulatory (non-) compliance challenges, responding to enforcement actions and through the execution of fact-finding ... More

Stefanie Citroen

Stefanie Citroen

Director

Stefanie Citroen is Director Sustainability within Deloitte and leading the Sustainable Finance practice. Stefanie has over 20 years of experience in the Financial Services Industry. Before joining De... More