Ace the CESGA Challenge 2025 – Empower Your ESG Expertise with EFFAS!

Climate change significantly impacts the environment, which is a core component of ESG (Environmental, Social, and Governance) considerations. This relationship is vital as businesses face increasing scrutiny over their environmental impact and the risks associated with climate change. Failing to acknowledge and address climate-related risks can lead to substantial financial consequences for companies, affecting their operations, supply chains, and regulatory compliance.

Investors are increasingly aware of how climate change can result in physical risks, such as severe weather events that disrupt business operations, and transition risks, including shifts in policy and market expectations. As these risks become more pronounced, companies that do not integrate climate change into their strategic planning may suffer declines in their long-term viability and investment value. Therefore, recognizing climate change as significant environmental risk aligns closely with the broader ESG framework, reflecting a fundamental understanding of how environmental issues can translate into financial risks and opportunities for businesses.