Article

Evaluating ESG and pandemic risk reporting trends

An analysis of ESG and pandemic risk reporting trends.

Drone photo of Iceberg and ice from glacier in arctic nature landscape on Greenland. Aerial photo drone photo of icebergs in Ilulissat icefjord. Affected by climate change and global warming.

Many parallels have been drawn between the lack of global preparedness for the COVID-19 pandemic and the environmental, social, and governance (ESG) risks that confront the world. As COVID-19 took hold in early 2020, some speculated that it was a “rehearsal” for the type of calamity the world could face as a result of climate change. It has proven to be more than simply a rehearsal for anything, and businesses and governments are actively applying lessons learned to date while still managing the ongoing risk.

Over the past two years, the pandemic has brought into sharp focus social risks, such as those relating to employee wellbeing, health and safety, employment laws, and human rights. At the same time, governance risks — associated with compliance, disclosure, reputation, and ethical standards — have gained increased attention and are now also at the fore. The questions are increasingly being asked: Is ESG risk the new pandemic risk? Will the world be equally unprepared?

In Evaluating ESG and pandemic risk reporting trends, Marsh presents research and analysis regarding risk trends based on annual reports from a selection of companies listed on global stock exchanges, covering the July 2020 to July 2021 reporting period. 

The report summarises over 1,100 combined risks extracted from the annual reports of companies on the Financial Times Stock Exchange 100 Index (FTSE 100) and provides cross-industry analysis on risk section maturity and corporate governance alignment.

The reporting period we analysed is unique, with the continuing impact of COVID-19 on society and businesses globally combined with the rising prominence of ESG risks, particularly climate and sustainability.

We also compared 60 companies listed on the Hong Kong Stock Exchange (HKSE), New York Stock Exchange (NYSE), and Euronext, and their collective 200 risks, providing insight into the reporting of ESG risks of significance for all companies.

Report

Evaluating ESG and pandemic risk reporting trends

This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy.  Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. LCPA 22/138

Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions. This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from JLT Risk Solutions on request. Full information can be found in the JLT Risk Solutions Financial Services Guide.”