“SEE risk management is increasingly relevant to the growing number of investors who recognise that how companies handle exposure to social, environmental or other ethical issues is an important component of good corporate governance” said EIRIS’ Executive Director Peter Webster. “EIRIS’ research is therefore a means of bridging the divide between traditional socially responsible investment issues and corporate governance issues. This study provides a governance angle to these matters” he continued.
The EIRIS report breaks down findings by business sector and by country. Key findings include:
French, Norwegian, Swiss and British companies have made the greatest progress in developing SEE risk management systems, although approaches vary from company to company
Larger companies are generally stronger than smaller companies, particularly in the United Kingdom
Sectors perceived as being at greater risk have a higher proportion of companies with good or advanced systems: mining (42%), oil and gas (53%) and tobacco (50%); however, significant variations remain in corporate responses to SEE risk within these sectors
Japan fares notably better than Hong Kong and Singapore
Therefore, though a significant minority of companies have good or advanced systems for managing SEE risks, this varies considerably both between and within different sectors and countries. There is much room for improved management of SEE risks. This provides extensive opportunities for socially responsible investors to engage with companies and work with them to help influence their approach to SEE risk management.