Social risk

LAPFF believes that social risk is every bit as important as environment and governance risk when it comes to long-term shareholder returns. The nature of the risk tends to differ from the other two in that its assessment is highly reliant on qualitative, rather than quantitative, indicators. Therefore, the forum engages in an innovative process of speaking directly to affected workers and communities to identify and address social risk. Identifying these risks in the context of Covid-19 is a new dimension to the forum’s work on social risks. The forum’s view is that this approach leaves it well-placed to deal with risk in a comprehensive way, as the just transition agenda gains traction.