Note: The Risk Matrix is produced by the Risk and Insurance® editorial team. Liberty Mutual Insurance is the presenting sponsor and has no responsibility for the content.
frequency
impact
Corporate oversight of environmental practices
78% of leaders at the world’s top 500 companies reported that managing climate-related risks will be critical in keeping their jobs over the next five years. Greenwashing, shareholder lawsuits, and SEC investigations could present challenges for directors and officers.
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impact
Resiliency planning
Carbon Emissions
Public Nuisance Lawsuits
Corporate oversight of environmental practices
Talent Acquisition
Professional Liability Concerns
frequency
78% of leaders at the world’s top 500 companies reported that managing climate-related risks will be critical in keeping their jobs over the next five years. Greenwashing, shareholder lawsuits, and SEC investigations could present challenges for directors and officers.
Corporate oversight of environmental practices
High impact
Low frequency
Low impact
High frequency
M&A
Employment Practices Liability (EPLI)
Financial Performance and Reputation
Note: The Risk Matrix is produced by the Risk and Insurance® editorial team. Liberty Mutual Insurance is the presenting sponsor and has no responsibility for the content.
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With significant weather events
becoming more frequent, companies should assess how to incorporate resiliency into their operational footprints. Areas to consider include building in less prone areas and using materials that can withstand severe weather exposures.
Resiliency
planning
By 2029, Millennials and Gen Z will
make up 72 percent of the world’s workforce. These younger generations are expected to place greater importance on ESG issues and find employers with stronger ESG performance more attractive.
Talent Acquisition
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An intensifying demand from
regulators, investors, and the public
is leading to a global effort to reduce greenhouse emissions to combat climate change and help protect the planet. Companies aiming to do so should find solutions, such as carbon sequestration, to help them with this effort.
Carbon
Emissions
Investment in DEI- and ESG-related initiatives is now a critical business priority for many companies. However, those that under deliver or appear negligent could find themselves subject to public nuisance lawsuits brought by state or local governments or private plaintiffs on behalf of constituents.
Public Nuisance Lawsuits
As companies make promises and
adapt to an ESG model, those who
advise during transition, such as law firms or consulting firms, could face lawsuits alleging errors, incorrect advice, or wrongful acts that result in errors & omissions liability claims.
Professional Liability Concerns
Separate ESG due diligence
reports are becoming the new norm
in sales processes, which is likely to become standard market practice for future M&A deals. Businesses should anticipate more claims arising from ESG-related issues go forward.
M&A
Even if a company has clear hiring
and employment policies and practices, lawsuits alleging workplace unfairness or other wrongful acts can still occur. With a deeper focus on ESG and DEI, companies should review internal practices and their EPLI needs.
Employment Practices Liability (EPLI)
85 percent of investors looked at ESG factors
when making investment decisions. Consumer preference and spending are also shifting towards more sustainable products. Companies that fail to meet expectations may experience a dip in investor confidence, financial performance, and reputation.
Financial Performance and Reputation
The political environment can impact
the broader ESG agenda. As an example, regulators are debating as to how climate risk should be considered as part of investment strategies.
Political
Activity
Political Activity
Low impact
Low frequency
With significant weather events becoming more frequent, companies should assess how to incorporate resiliency into their operational footprints. Areas to consider include building in less prone areas and using materials that can withstand severe weather exposures.
Resiliency planning
High impact
High frequency
By 2029, Millennials and Gen Z will make up 72 percent of the world’s workforce. These younger generations are expected to place greater importance on ESG issues and find employers with stronger ESG performance more attractive.
Talent Acquisition
High impact
High frequency
Learn More
An intensifying demand from regulators, investors, and the public is leading to a global effort to reduce greenhouse emissions to combat climate change and help protect the planet. Companies aiming to do so should find solutions, such as carbon sequestration, to help them with this effort.
Carbon Emissions
Investment in DEI- and ESG-related initiatives is now a critical business priority for many companies. However, those that under deliver or appear negligent could find themselves subject to public nuisance lawsuits brought by state or local governments or private plaintiffs on behalf of constituents.
Public Nuisance Lawsuits
High impact
Low frequency
Learn More
Separate ESG due diligence reports are becoming the new norm in sales processes, which is likely to become standard market practice for future M&A deals. Businesses should anticipate more claims arising from ESG-related issues go forward.
M&A
High impact
High frequency
As companies make promises and adapt to an ESG model, those who advise during transition, such as law firms or consulting firms, could face lawsuits alleging errors, incorrect advice, or wrongful acts that result in errors & omissions liability claims.
Professional Liability Concerns
Low impact
Low frequency
Even if a company has clear hiring and employment policies and practices, lawsuits alleging workplace unfairness or other wrongful acts can still occur. With a deeper focus on ESG and DEI, companies should review internal practices and their EPLI needs.
Employment Practices Liability (EPLI)
Low impact
High frequency
85 percent of investors looked at ESG factors when making investment decisions. Consumer preference and spending are also shifting towards more sustainable products. Companies that fail to meet expectations may experience a dip in investor confidence, financial performance, and reputation.
Financial Performance and Reputation
The political environment can impact the broader ESG agenda. As an example, regulators are debating as to how climate risk should be considered as part of investment strategies.
Political Activity
Low impact
High frequency
Learn More
Learn More
Learn More
Learn More
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