Integrating the role of Compliance
How are Chief Ethics and Compliance Officers (CCOs) integrating the role of Compliance in building and sustaining an effective compliance program for Sustainability/ESG (Environmental, Social, and Governance)?
KPMG client CCOs share many key insights, including:
The CCO Role in Sustainability/ESG
Sustainability/ESG Compliance Program
Compliance must drive an effective compliance program for Sustainability/ESG in line with an overall sound framework. This means identifying and building controls to mitigate a new series of potential Sustainability/ESG-related legal, reputational, and compliance risks.
Some key sample questions to ask of your Compliance program include:
Regulatory and Commitment Change Management: Does our regulatory change management process fully capture relevant proposed and new Sustainability/ESG-related requirements at the global, federal, and state levels and identify divergent requirements posing compliance risks?
Risk Assessment: Have we assessed the inherent and residual risks to the ESG-related regulatory requirements/expectations and our company’s Sustainability/ESG-related commitments?
Policies and Procedures: Have we mapped our existing policies and procedures to the Sustainability/ESG-related risks?
Monitoring and Testing: Have we updated our monitoring and testing to the new Sustainability/ESG-related risks (e.g., advertising/marketing/disclosures, social audits, monitoring of third parties/suppliers)?
Issues Management and Investigations: Do our current legacy data access/processes need to be revamped/retooled for active and varied stakeholder Sustainability/ESG-related requests?
Helping organizations in their efforts to achieve the highest level of integrity and to manage the cost and risk of litigation, investigations, and regulatory enforcement actions.