FAQ: ESG and DEI Risks and Solutions
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February 19, 2025
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Recent political, commercial and legal pressures have brought ESG and DEI into the spotlight. Many companies are now evaluating how these developments may impact their programs.
Global Leader of ESG and Sustainability Miriam Wrobel, Senior Managing Director Alanna Fishman and Managing Director Darius Johnson answer some questions about the risks that could make your company a target.
Could my company be a target for a DEI or ESG investigation?
To determine the level of risk a company could face regarding DEI or ESG investigations, an experienced partner can evaluate your company’s program across different stakeholders and issues areas. For example, understanding your investor base can be helpful in determining what is most important to them and what commitments you have made to them previously.
How do I uncover the risks that could expose the company to ESG or DEI-related litigation?
A comprehensive approach is necessary. Data-driven methods will ensure that all sources of information — including existing programs, commitments and public statements — are captured and evaluated.
What immediate steps can we take to mitigate these risks?
With the heightened scrutiny coming from the government, investors, activists and customers, companies shouldn’t react too quickly. Turn to experts who can help you address critical areas of risk while developing a response plan for stakeholder engagement and communications.
Do I have to roll back or eliminate DEI or ESG-related claims and goals?
Not necessarily. You can identify the high-risk areas and address them strategically without the need for any dramatic pivots. Our goal is to de-risk the company while holding true to corporate values.
How do we address stakeholders with different opinions or requirements?
There is no one-size-fits-all response or solution. What is pressuring you politically may not align with what your customers or investors want. A successful strategy will detail risk and opportunity across multiple stakeholders to enable bespoke, targeted communications for each group.
The bottom line is that a thoughtful approach to evaluating risk across DEI and ESG commitments, taking into consideration all of the stakeholders (internal and external), can help avoid unnecessary disruption. These recent events don’t necessarily spell the end for DEI and ESG programs, but companies should recognize the opportunity to reassess their vulnerabilities, balance their focus and tighten the communications surrounding them.
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Published
February 19, 2025
Key Contacts
Senior Managing Director, Global Leader of Environmental, Social and Governance (ESG) and Sustainability
Senior Managing Director
Managing Director