This is an excerpt from the recent Corinium Intelligence report, ‘Embracing Data-Driven Risk Management in 2022’ report. To access the full report, click here.
When it comes to vetting and managing organizations’ environmental, social and corporate governance credentials, ensuring risk teams have access to accurate and up-to-date entity data is key.
The UN’s COP26 conference shone a light on the urgent need for governments and corporations to act to mitigate the effects of climate change. But environmental, social and corporate governance (ESG) issues started climbing the business agenda long before these landmark talks.
Enterprises have never been under more pressure to ensure they and the companies they work with have responsible business practices. Regulators, investors and consumers alike expect companies to proactively avoid doing unethical things or working with unethical business partners.
As Mastercard Chief Data Officer JoAnn Stonier says in a recent Business of Data panel discussion, companies including Mastercard have been looking at how they can use data to drive positive social impacts for years. When it comes to vetting and managing organizations’ environmental, social and corporate governance credentials, ensuring risk teams have access to accurate and up-to-date entity data is key.
“We’ve been on a journey at Mastercard, as we created our Center for Inclusive Growth,” Stonier says. “We really have a commitment towards improving society overall.”
“Lots of organizations have a commitment to using their financial assets or their people assets [to drive social impact],” she continues. “Mastercard also then began looking at its technology assets. And the last group of assets that we began realizing were going to be of use in this conversation were our data assets.”
ESG risk is the risk associated with failing to ensure an entity meets its responsibilities with respect to environmental, social and corporate governance factors.
Using data to develop innovative initiatives and product offerings is one way enterprises can seek to drive positive social outcomes through their work. But it’s equally important for enterprise risk leaders to be using entity and specialist data to manage ESG risk.
Find out more about how our Orbis solution can help facilitate complex entity data analysis.