Managing Fraud Risks in an Evolving ESG Environment
Environmental, social and governance (ESG) issues are some of the most important topics discussed in the boardroom today. Consumers and employees are paying increased attention to these areas, and ESG issues have become a major consideration for individual and institutional investors. But, as with many new trends, the regulatory and reporting frameworks related to ESG are struggling to keep up with the pace of change. Without consistent standards, the opportunity for fraud is increased. Consequently, anti-fraud practitioners have a critical role to play in the future of ESG programs.
The ACFE, in partnership with Grant Thornton, created Managing Fraud Risks in an Evolving ESG Environment to help organizations and anti-fraud professionals understand the internal and external fraud risks presented by this paradigm. The report provides a taxonomy of ESG fraud risks, including fraudulent reporting of ESG metrics and ESG-related frauds by unscrupulous suppliers, and outlines measures organizations can take to protect against these schemes.
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