COSO and WBCSD to work together to align sustainability and enterprise risk management
- Published: Wednesday, 12 April 2017 09:16
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) and the World Business Council for Sustainable Development (WBCSD) are to jointly develop interpretive guidance on how to embed sustainable development issues into COSO’s Enterprise Risk Management Framework. The new guidance will act as a foundation to bridge the gap between the way companies consider sustainability issues in their risk management processes and how they disclose these risks to investors, facilitating effective decision making inside and outside the company.
A recent WBCSD study, launched at the World Economic Forum meeting in Davos 2017, ‘Sustainability and Enterprise Risk Management,’ found a clear disconnect between enterprise risk management and sustainability practices in most of the businesses studied. This provides a critical starting point for COSO and WBCSD to collaborate in helping businesses navigate and prioritize sustainability risks.