Conflict Exposes Governance Risks and Due Diligence Flaws

Russia’s invasion of Ukraine is leading to a rapid reappraisal of ESG risks by asset owners, including enhanced scrutiny of human rights and governance risks across portfolios, and a reaffirmed commitment to net zero targets.   

Investors and corporates are facing practical, legal and liquidity challenges as they seek to pull out of Russia at speed, driven by sanction compliance, human rights concerns and reputation risk.