what is the complex risk with poor company ESG team ?
Najd, you’re right. Poor ESG teams create risks like weak compliance, reputational damage, and loss of investor trust. To mitigate this, companies can strengthen capacity through regular training, set up cross‑functional ESG committees, and use external assurance partners to validate reporting. Adding ESG certifications (such as B Corp or ISO 14001) further builds credibility, showing stakeholders that practices are independently verified and not just self‑declared. Together, these steps make ESG governance more resilient and trustworthy.
A weak ESG team can create complex risks for a company, including reputational damage, regulatory non-compliance, financial loss, operational inefficiencies, and missed strategic opportunities. These risks are interconnected and can significantly affect long-term business performance.
Well said, Shatha. Those interconnected risks show why ESG needs strong leadership. Certification and assurance can also help companies avoid these pitfalls by proving their practices are credible and not just internal claims.