Market Insight: The Value Of ESG In GRC Platforms In An Unstable Market
14 Mar, 2025
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Executive Summary
Recent developments – such as rising anti-ESG sentiments from the newly elected Trump administration and potential changes to the EU’s Corporate Sustainability Reporting Directive (CSRD) – have left governance, risk and compliance (GRC) vendors uncertain about investing in ESG risk capabilities. While some US firms are rolling back ESG and sustainability policies and programmes, others continue to move forward. This report details the current state of play and outlines the long-term benefits of ESG risk in GRC platforms for reasons beyond regulatory compliance, encompassing uses for risk intelligence, climate risk readiness and reputational strategy. GRC vendors can use this report to understand current drivers in the market and inform ESG risk investment decisions.
GRC platforms make ESG risk data meaningful
ESG value in the new reporting landscape
GRC vendors should think beyond short-term political challenges when weighing up investment in ESG risk
ESG value in the new reporting landscape
GRC vendors should think beyond short-term political challenges when weighing up investment in ESG risk
Figure 1. The long-term benefits of incorporating ESG risk into GRC platforms outweigh the short-term uncertainty
Allianz Global Investors, Costco, Meta, Goldman Sachs, California Air Resources Board (CARB), BlackRock, European Sustainable Investment Forum (Eurosif), Net Zero Asset Managers (NZAM) initiative, European Banking Authority (EBA), International Sustainability Standards Board (ISSB), Apple, Google, PIMCO, European Commission, UN Principles for Responsible Investment (UNPRI), Morningstar, Bank of America, Climate Action 100+, Target, John Deere, US Securities and Exchange Commission (SEC), Citigroup
About the Authors
Mahum Khawar
Analyst
Mahum is an Analyst at Verdantix, specializing in AI integrations within risk management software and operational resilience. She advises technology buyers and software vendor…
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Katelyn Johnson
Senior Manager
Katelyn is a Senior Manager at Verdantix, specializing in enterprise risk management and external risk and resilience. She helps executives navigate today’s evolving ris…
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