Sustainability Reporting and Risk Management

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School of Business | Bachelor's thesis
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Date

2024

Major/Subject

Mcode

Degree programme

Laskentatoimi

Language

en

Pages

45

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Abstract

The connection between sustainability reporting and risk management is a topical issue, because especially climate change and the resulting stricter regulation increase the risks faced by companies. Companies must integrate sustainability reporting more effectively into their risk management. In this literature review, different possibilities are examined, how sustainability reporting can be used as a risk management tool when facing different risks affecting business operations. In addition, the goal is to analyse what kind of promoting factors and what challenges the integration of sustainability reporting and risk management faces. As a result of the research, it can be stated that sustainability reporting can be used as a wide-ranging tool in risk management. With the help of sustainability reporting, companies get a lot of new information about the risks facing their business, as well as improve the company's reputation and increase the trust of stakeholders. However, risk management strategies to utilize sustainability reporting should be enhanced. Variations in the quality of sustainability reporting and the lack of resources cause considerable challenges for the creation of effective risk management strategies. In the future, companies that adopt versatile and transparent sustainability reporting practices as part of their comprehensive risk management will create a significant competitive advantage in relation to other companies in the industry.

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Thesis advisor

Pham, Ly

Keywords

sustainability reporting, risk management, CSRD, GRI

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