Why cybersecurity needs to be part of ESG – Cybersecurity Magazine>
Cyber Security Magazine – Tim Wallen
The article emphasizes the growing importance of integrating cybersecurity into Environmental, Social, and Governance (ESG) policies.
ESG policies are typically associated with climate change and social responsibilities, but they also aim to reduce risks for the company and its stakeholders.
Cybersecurity is a key aspect of risk management and is increasingly considered crucial within ESG frameworks.
Investors and customers expect businesses to take data protection seriously, and cybersecurity plays a significant role in safeguarding data.
Cyber insurance and cybersecurity posture analysis are being used to assess the level of risk involved in investments.
Integrating cybersecurity frameworks, such as ISO 27001 or Cyber Essentials, into ESG reporting allows for a comprehensive understanding of risk, governance, and accountability.
The article also highlights the societal responsibilities of organizations regarding data subjects, emphasizing the importance of upholding the social aspects of ESG.
Some ethical investors prioritize supporting organizations that align with the United Nations Sustainable Development Goals (SDGs), which address various global issues including climate change and social justice.
Ensuring oversight and centralizing the cybersecurity function can aid in providing the necessary information for accurate assessment and reporting.
ESG rating agencies are increasingly factoring cyber resilience into their ESG scores, with varying weightings depending on the industry.
Transparently handling a data breach, from detection and containment to incident response and post-breach adjustments, can help mitigate the impact on ESG scores.
Ultimately, businesses that prioritize cybersecurity and demonstrate transparency in their data handling and defense efforts stand to gain as insurance premiums rise, investors seek more information, and accountability becomes more critical.
Link: https://cybersecurity-magazine.com/why-cybersecurity-needs-to-be-part-of-esg/