A new survey from the WTW 2022 Environmental, Social and Governance (ESG) Global Risk Managers Survey conducted by Willis Towers Watson (WTW) has found that nearly 75% of risk managers are seeking a greater role in their organization's ESG initiatives.

"In business, and in risk, it’s really about thriving, not simply surviving. It’s about leveraging the tools available for the best possible results," Everlong Captive CEO and Founder Doug Truax said.

According to the survey of responses from 312 companies that employ more than 2 million people, nearly three-quarters of risk managers surveyed believe risk management should take a more active role in their organization's ESG initiatives.

"ESG is a term used by investors, clients, regulators and credit rating agencies to evaluate corporate behavior and to determine potential impact on the current and future financial performance and sustainability of companies," the WTW survey report says. "ESG covers a broad set of principles and topics that have become the subject of increasing market, regulatory, legal, stakeholder, and public scrutiny in recent years."

"We recommend a risk mapping exercise, and then assessing the size and shape of those risks (impact, likelihood, velocity), bringing it into your organization's enterprise risk management framework," the WTW report says.

According to WTW's report, the focus on ESG is about more than just doing the right thing, it is about helping companies have lower risk and higher active returns and dividends.

The survey found that 77% of respondents believe risk managers need to play a more active role in ESG initiatives and 74% believe a company's ESG score is a core business focus.

Another 67% of risk managers said their organization does have clear ESG goals, and 35% in North American respondents expect to have documented risk management targets within the next two years.