Companies should adopt measures including science-based emissions targets, stronger board oversight, responsible artificial intelligence practices and tighter supply-chain due diligence to reduce growing environmental, social and governance (ESG) risk exposure, according to GlobalData.
The data and analytics group said businesses are increasingly vulnerable to risks ranging from climate change and biodiversity loss to human rights violations, data privacy breaches and weak governance, requiring a structured approach that goes beyond compliance and disclosure.
Its Strategic Intelligence: GlobalData’s ESG Framework (2026) assesses ESG exposure across 12 dimensions, including climate change, human rights, corporate structure, biodiversity, health and safety, and ethics.
Companies are also encouraged to assess risks across five areas: Physical, regulatory, market, financing and reputational exposure before identifying appropriate mitigation measures.
GlobalData said mitigation measures could include setting emissions targets, strengthening board-level oversight, introducing responsible AI practices, conducting supply-chain due diligence, providing data privacy training and establishing whistleblowing policies.
Senior analyst Aoife McGurk said companies face different risk profiles, making a one-size-fits-all approach ineffective.
Beyond direct operations, companies also need to scrutinise suppliers and vendors, where ESG exposure can arise from forced labour, deforestation, emissions, data protection failures and weak governance.
GlobalData senior analyst Holly Anness-Bradshaw said identifying exposure alone was insufficient, with companies needing to translate ESG assessments into specific actions to strengthen business resilience.
