Beneficial Ownership Calls for Cautious Navigation in ESG Reporting
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As companies navigate the complexities of environmental, social, and governance (ESG) reporting, it’s essential to adopt a nuanced approach to avoid greenwashing and fraud. With evolving standards and technological advancements, businesses must align with changing regulations to ensure transparency and accountability.
The Importance of Beneficial Ownership
The recent Kroll 2023 Fraud and Financial Crime Report highlights the significance of beneficial ownership in ESG reporting. The report emphasizes the need for accurate and transparent ownership disclosure, as companies face increased scrutiny from regulators, investors, and stakeholders.
Financial Crime Risk Remains a Potent Threat
According to the report, financial crime risk remains a significant threat, with 69% of respondents expecting an increase in financial crime over the next 12 months. The findings suggest that at least one-third of entities will suffer some kind of adverse event due to cybersecurity and data breaches.
Technology Plays a Critical Role
In combating financial crime, technology plays a vital role. AI has proven transformative, particularly in combating financial crime. However, the effectiveness of AI hinges significantly on the quality of underlying data. High-quality, well-structured data is key to harnessing AI’s full potential in the fight against growing financial crime.
The Path Forward
In an era of evolving economic pressures and geopolitical tensions, a tech-driven strategy is crucial for combating financial crime. Companies must balance transparency and privacy, particularly in beneficial ownership, while adopting best practices in ESG reporting to avoid greenwashing and fraud.
Stay Ahead with Kroll
Kroll’s global Financial Crime Advisory team provides expert guidance on anti-money laundering (AML) solutions, anti-corruption compliance, and risk analytics. Our team of seasoned professionals helps enterprises around the world defend against the rapid growth of financial crime.
Watch the Webinar Replay
Join Kroll’s experts for a webinar discussion on key takeaways from this year’s Fraud and Financial Crime report, strategies for getting ahead in the evolving fight against fraud and financial crime, and more. Watch the replay now!