In late spring 2022, the U.S. Securities and Exchange Commission (SEC) charged an elite investment adviser for “misstatements and omissions” about environmental, social, and governance (ESG) considerations related to its managed mutual funds. This same financial firm has also faced myriad cybersecurity problems during the past 15 years, including a data breach and deficient cybersecurity practices.

It’s not a unique scenario: Companies large and small, public and private, are facing increased challenges in managing the requirements and responsibilities of ESG and cybersecurity. Both fields, besides maintaining a stronghold on news headlines and cutting-edge tech entrepreneurs, demand not just constant attention but also transparency. As various federal agencies have demonstrated, audits and investigations will determine when quality reviews and compliance certifications aren’t accurate.

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