Professional service firms are dependent on retention of skilled human capital to perform revenue-generating client service
Transparency and accountability, ethics and integrity, board diversity, and commitments to regulatory policies and practices have long been considered “table stakes” for professional service firms and their stakeholders. Governance issues have historically held more sway over ESG ratings due to the immediate and long-term negative impact from poor governance practices
Ongoing acceptance of the company or industry's business practices and operating procedures by its employees, stakeholders, and the general public is necessary for corporate profitability
Encouraging workforce diversity and inclusion (staff & board level) is likely to enhance recruitment and retention of top talent and improve customer outcomes
A rapidly evolving compliance landscape creates opportunities and challenges, while legal and independence issues may pose risks
Exposure of customer data, particularly highly sensitive data, either through malfeasance or negligence could result in significant financial losses for all involved
While physical risks are a concern for professional service firms, transition risks generally pose a larger threat to future revenue